Five Canadian companies are included on this year's list of the 100 most sustainable large companies in the world.
Toronto-Dominion Bank, EnCana Corp., Telus Corp., TransCanada Corp., and Royal Bank of Canada were considered to be among the elite corporations worldwide that are both environmentally friendly and likely to survive in a tough financial environment.
The Global 100 is compiled by Canadian magazine Corporate Knights, along with New York-based research firm Innovest Strategic Value Advisors. Innovest analysts rate hundreds of publicly traded companies around the world based on their environmental record, their corporate governance practices, how they manage human resources and how they relate to communities.
Only three Canadian firms made the cut last year – RBC, TransCanada, and Nexen Inc.
This year, TD and RBC were cited for the low risk of their loan portfolios, and for their investments in innovative environmental and social markets. EnCana was chosen because it made above average investments in renewable energy, while Telus has improved its sustainability performance. TransCanada made the list mainly because of its consultation programs that maintain close contact with aboriginal communities.
Corporate Knights editor Toby Heaps said the analysts also checked the longevity of companies on this year's list.
“As the Global 100 companies are supposed to be the kind of companies that will be around in 100 years, we researched the year of origin for each of the [firms] to see how many were around 100 years ago,” he said.
A total of 46 have been around for more than a century. Of the Canadian firms on the list, TD is the oldest, with its origin dating back to 1855.
Still, many other international firms on the list are even older. The Finland-based forest products company Stora Enso OYJ traces its roots back to the 13th century.
The U.S. has the most companies on this year's Global 100 list, with 20 firms included. Britain has 19, while Japan has 15.
© The Globe and Mail
