Siemens AG again topped out the latest update of the Carbon Clean 200 list of the 200 largest publicly traded companies in the world making significant revenue from clean energy, and China continues to have far and away the most companies on the list, as clean energy stocks generated returns almost double that of fossil fuel stocks.
The Carbon Clean 200 list (Clean200) was first launched back in the summer of 2016 and ranks the top 200 publicly traded companies that are making significant revenue from clean technology. Published by non-profit As You Sow and research company Corporate Knights, the Clean200 provides quarterly performance updates on its 200 members which are spread across 29 countries and together represent an average market capitalization of $9.4 billion while generating over $363 billion in clean energy revenues each year.
Maybe the most important takeaway from this latest Clean200 update is companies on the list generated a total return of 32.1%, which is almost double the 15.7% for fossil fuel companies on the S&P 1200 Global Energy Index.
Specifically, across its first 18 months of live performance through to December 31, 2017, the Clean200 generated a return of 31.1% versus 15.7% for its fossil fuel benchmark, the S&P 1200 Global Energy Index, and a 10.6% gain for the S&P Global Clean Energy Benchmark. The highlight for the authors of the report was that the “moral case for divesting from fossil fuels” need not necessarily be the primary reason for divestment decisions, and that “it is probable that divesting from fossil fuels in favor of a clean energy future does not have to come at a sacrifice to long-term investment returns.”
“Market forces continue to show that the new energy economy is not only a growth sector, but continues to outperform fossil fuel based energy,” said Andrew Behar, CEO of As You Sow and report co-author. “We are living through the ‘Great Transition’ as capital flows drive the path to averting climate catastrophe.”
“It is interesting that the Clean200 managed to almost double the performance of fossil fuel energy stocks over the past year and half, given the general upswing in oil prices over that period,” added Toby Heaps, CEO of Corporate Knights and report co-author. “The outperformance is being driven by companies in the business of energy efficiency.”
The top 10 companies on the Clean200 list for its fourth update are as follows:
- Siemens Ag
- Toyota Motor Corp
- Schneider Electric Se
- Abb Ltd
- Panasonic Corp
- Vestas Wind Systems
- Bombardier Inc
- Innogy Se
- Sse Plc
- Emerson Electric Co
For the full report and an explanation of the methodology behind choosing and ranking the Clean200, click here.