Clean200 Companies Continue to Outperform MSCI ACWI Global Index

As You Sow and Corporate Knights recently released their 9th update of the Carbon Clean 200, a list of 200 publicly traded companies worldwide that are leading the way among their global peers to a clean energy future.

Key Findings Include:

  • Clean200 companies generated a total return of 107.09% beating the MSCI ACWI broad market index (103.15%) and MSCI ACWI/Energy Index of fossil fuel companies, (31.67%) on Total Return Gross — USD Basis from the Clean200 inception of July 1, 2016 to Jan. 31, 2022.
  • $10,000 invested in the Clean200 on July 1, 2016, would have grown to $20,709 by Jan. 31, 2022, versus $20,315 for the MSCI ACWI broad market benchmark and $13,167 for the MSCI ACWI/Energy benchmark for fossil fuel companies.
  • 10 companies that contributed the most to the Clean200’s outperformance over the past year were primarily from China, the U.S., South Korea, and Canada and include electric vehicles, environmental protection, energy conservation solutions, and green energy themes.

“In 2016 we created the Clean200 in response to investors saying, ‘if we divest fossil fuels there is nothing to invest in,’” said Andrew Behar, CEO of As You Sow and report co-author. “The Clean200 has demonstrated consistently that the clean energy future is the clean energy present. This year, the scale and global diversity of leading companies continue to expand and redefine the term cleantech to be any company that has products and services that will reduce demand for fossil fuels and water.”

The top 10 companies on the list by revenue include Apple Inc., which offers sustainably-certified phones and laptops; Alphabet Inc. whose operations are 100% powered by renewable energy; Intel Corp.; Taiwan’s TSMC for low-energy microchip solutions; and Iberdrola SA for clean power generation. Thirty-two countries are represented in the Clean200, including the U.S. (53), Canada (18), China (16), France (12), and Japan (11).

Top 10 Clean200 companies by revenue chart

“Without major tech outperformers like Amazon and Microsoft or any of the fossil fuel stocks now surging on the back of high oil prices, the Clean200 still managed to outperform both the blue-chip and oil and gas indices over the past five years, signaling the market’s confidence in their mojo to take our economy forward post-pandemic,” said Toby Heaps, CEO of Corporate Knights and report co-author.

The Clean200 utilizes Corporate Knights Clean Revenue database which tracks the percent of revenue companies earn from clean economy themes including energy efficiency; green energy; electric vehicles; banks financing low-carbon solutions; real estate companies focused on low-carbon buildings; forestry companies protecting carbon sinks; responsible miners of critical materials for the low-carbon economy; food and apparel companies with products primarily made of raw materials with a significantly lower carbon footprint; and Information and Communications Technology (ICT) companies that are leading the way on renewable energy while also being best-in-sector according to currently accepted privacy benchmarks.

The list excludes companies that are flagged on As You Sow’s Invest Your Values suite of mutual fund transparency tools that identify companies involved in fossil fuels, deforestation, weapons, gender inequality, tobacco, and the prison industrial complex.

“We will continue to track and share the emergence of this economic powerhouse,” Behar continued. “There is now clear financial evidence showing a broad spectrum of companies and market forces making the economic transformation, which is our greatest hope in controlling climate change.”

 

As You Sow is the nation’s leading shareholder advocacy nonprofit, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.

Corporate Knights is a research and media B Corp that seeks to provide information that empowers people to harness markets for a better world.

As You Sow and Corporate Knights are not investment advisors nor do we provide financial planning, legal, or tax advice. Nothing in the Carbon Clean 200 Report shall constitute or be construed as an offering of financial instruments or as investment advice or investment recommendations.

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Comment

  • We all need to pay closer attention to labor conditions on the factory floor at TESLA plants. Such anti-union, anti-labor companies should not be allowed on lists of ESG favorites just because they make electric vehicles. Environmentalism in the absence of social justice is Climate Apartheid by race and class. Hi-tech robber-barons have no place in SRI.

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