Clean200 leaves dirty energy in dust

EV manufacturers and green energy are included in Carbon Clean 200 publicly traded companies leading the way among global peers to a clean energy future.

They include Tesla, Schneider Electric, Siemens AG, and Alphabet in a seventh update of the Clean200 by As You Sow and Corporate Knights.

Clean200 companies generated a total return of 113.41%, beating the MSCI ACWI broad market index (78.67%) and MSCI ACWI/Energy Index of fossil fuel companies, (-13.83%) on total return gross.

About US$10,000 invested in the Clean200 on July 1, 2016 would have grown to US$21,340 by January 31, 2021 versus US$17,867 for the MSCI ACWI broad market benchmark and US$8617 for the MSCI ACWI Energy benchmark for fossil fuel companies, the report says.

The 10 companies which contributed the most to the Clean200’s outperformance during the past year are split between China and the US.

“In 2016 we created the Clean200 in response to investors saying, ‘if we divest fossil fuels there is nothing to invest in’,” As You Sow chief executive and report co-author Andrew Behar says.

Twenty-eight countries are represented in the Clean200, including the US (43), Japan (28), China (17), France (15), and Germany (8).

 “While tech companies like Amazon and Zoom have had a good run through this pandemic period, the broad-based trend of outperformance has been dominated by companies providing sustainable solutions, signaling the market’s confidence in their mojo to take our economy forward post-pandemic,” Corporate Knights chief executive and report co-author Toby Heaps says.

The Clean200 utilises 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; and more.

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

“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,” Behar adds.

As You Sow is a non-profit organisation promoting environmental and social corporate responsibility through shareholder advocacy, coalition building, and innovative legal strategies.