For the first time in history, it has been reported worldwide that sustainable business governance has improved. Pushes for increased sustainability and pressure to change have received most of the credit for the recent headway made.
Here are five take-home points from the report.
1.Most significant improvement found in mid-rated corporates
The companies previously rated by Oekom as good or very good remained roughly the same. It was the mid-rated companies whose increase was more noticeable. Their scores improved from 35.8 percent to 40.1 percent from 2015 to 2016.
2.The UK Boasts the Third Highest Amount of Top-Rated Sustainability Performers
The UK had the third highest number of companies in the top-rated category. They were only beaten by France (with 16 businesses) and Germany (12). Making up the top seven after the UK were Sweden and the US (both with 6), the Netherlands (5) followed by Japan (4).
3.Carmakers and Industries Making Personal and Household Products Lead Rankings
These companies are not getting the top scores, but their sectors are leading the industry rankings. On the scale from 0 to 100, carmakers scored 46.5 and personal and household products scored 44.7 Automobile tally well in spite downgrades to individual businesses because of emissions- and exhaust- reporting incidents.
4.Raw Material Industries were the Among the Worst Performers
As in previous reports, the raw materials sector are the businesses with severe violations to the ideals set out by the UN Global Compact. The oil and gas services/equipment sector are the worst offender, where controversies were found in six from every 10 firms.
5.How Companies are Responding to Environmental Challenges
Each industry has different problems to overcome, but the evidence shows businesses are moving in the right direction. The growing investment and demand for sustainable business models gives us reason to be optimistic. Sustainability is becoming so ingrained in development that even political obstacles can’t derail positive changes.