In the past 10 years, more businesses have made sustainability one of their top priorities. Many companies are targeting UN Sustainable Development Goals. According to Global Reporting post in January, 69% of companies are able to clearly articulate the sustainability goals that align with their business.
New technologies have allowed supply chains, packaging and energy sources to become more environmentally friendly than ever before. Consumers are increasingly eco-aware, and the demand for sustainable products has risen over the last decade. Companies that want to appease eco-friendly customers must understand them first.
However, some companies are certainly more committed to sustainability than others. Some don’t seem to worry about it at all. Here are three of the most and least sustainable businesses of 2024.
The Most Sustainable
Here are the three most sustainable businesses this year, setting shining examples for the rest of the corporate world to follow.
1. Chr. Hansen
Chr. Hansen, a Danish bioscience firm, has been one of the top sustainability companies in most lists for several years running. This year, they ranked second on Earth.org’s list, which ranks corporations based on their commitment to sustainability through initiatives like the reduction of carbon use and industrial waste.
Chr. Hansen may not be a name that’s immediately familiar to most Americans, but its products are essential natural alternatives for those in agriculture and food production. Chr. Hansen manufactures enzymes and food cultures used in the industrial production of things like cured meat, cheese and yogurt, as well as natural alternatives to animal antibiotics. More than 80% of Chr. Hansen’s revenue comes from these natural food products.
2. McCormick & Company
McCormick & Company, the American food enterprise that produces packaged spices, herbs and seasoning mixtures, has big plans for making its supply chain more sustainable. This past January, they were ranked the 14th most sustainable company in the world.
In 2017, McCormick & Co. outlined its 2025 sustainability goals. The company’s Purpose-led Performance Report detailed its plans to convert to 100% recycled plastic packaging, reduce its carbon footprint by 25% and source 100% of its five iconic spices —vanilla, red pepper, black pepper, oregano and cinnamon — from sustainable agriculture sources.
Like Chr. Hansen, McCormick & Co. placed on the Global 100.
3. Cisco
In 2020, Cisco had cut 1 million tons of greenhouse gases out of its supply chain and source at least 85% of the energy it uses from renewable sources. In 2018, Cisco had already reduced its level of emissions by 45% compared to 2007 and was listed No.1 on Barron’s Most Sustainable U.S. Company List. In September 2021, they announced a plan to be completely carbon neutral by 2040.
Cisco is also working on several environmental and social initiatives. One of these initiatives is the Connected Conservation project, Cisco’s collaboration with Dimension Data. The pair worked together to develop and deploy the project in South African wildlife reserves to save rhinos there from poachers.
Together, Cisco and Dimension Data achieved a 96% reduction in rhino poaching by creating a network of technology that monitors reserve visitors, staff and anyone within the bounds of the reservation.
Cisco and Dimension Data have since announced they will expand the program into Zambia, Kenya and Mozambique.
4. Vestas Wind Systems A/S
Vestas, is one of the biggest players in the sustainable energy sector in 2024. In fact, the company has always been a leader in sustainability. It was even recognized as the world’s most sustainable brand in 2023.
Vestas offers wind power systems to customers all over the world. Another company, Corporate Knights, rated it the 18th best in 2023. This was a huge accomplishment since 6,914 companies were considered in the ranking. Only companies with revenues exceeding $1 billion were considered, so they had to be successful as well as focused on sustainability. These impressive results highlight the fact that the company is heavily focused on sustainability in 2024. .
Vestas’ recognition for sustainability is due to the major advances it has made in renewable energy. While many other brands are focused on solar power, Vestas is committed to wind energy, which can be an important supplement for eco-friendly consumers in areas where solar power is not as feasible.
Vegas was founded four years ago and has already made a name for itself. Its strategy emphasizes sustainability performance as a paramount focus throughout the entire value chain, extending to its supplier network. Complementing this initiative, Vestas has recently unveiled an ambitious circularity roadmap and governance framework. Furthermore, the Science Based Targets initiative has validated the company’s carbon emissions reduction targets for internal operations, affirming their alignment with the 1.5-degree scenario outlined in the Paris Agreement.
The Least Sustainable
Sustainability is not guaranteed in the business world.
There are fewer lists ranking the worst actors because it is hard to get information like the amount of carbon a company puts out into the environment if it isn’t reporting it themselves. It is certainly possible, however, to figure out which companies are doing the least for the environment, and which might even be causing significant damage.
Here are three of the least sustainable businesses of 2024.
1. Amazon
As an e-commerce platform and tech giant, Amazon needs massive amounts of energy to keep its servers running. Last month, Mother Jones reported that it drastically underestimated its carbon footprint. Companies like Microsoft and Google, who also need significant levels of power for their cloud computing technologies, have made sourcing clean energy a priority. Amazon has not.
Amazon’s delivery fleet is in a similar situation. In 2018, the company ordered 20,000 additional vehicles, none of which were fully or partially electric. It was a chance for Amazon to pivot toward sustainability, but the company doesn’t seem interested in green initiatives for the moment.
Amazon does not produce a sustainability report.
2. Nestlé
Nestlé is one of the world’s biggest producers of plastic trash in the world. The multinational food and drink conglomerate caught flak throughout 2021 and much of the 2010s for their extraction of water from vulnerable bodies of water. It is getting even more flack this year, although that might be underestimated due to its criticism over its response to the Russian invasion of Ukraine.
In August of 2021, Nestle sought approval from local authorities to siphon more than 1.1 million gallons of water per day from the Suwanee River, considered vulnerable by the Suwanee River Authority. The river was previously threatened by overpumping, but Nestlé has argued that the river won’t be harmed by their plan. They have not shown signs of abating this plan this year.
Nestlé maintains a section on sustainability on its website, but does not publish a sustainability report.
3. Peabody Energy
Peabody Energy is the largest private-sector coal company in the world. Peabody, being responsible for most of the coal production in the United States, could be reasonably considered one of the largest sources for emissions of greenhouse gases. The company was ranked 29 out of 31 in the Energy industries section of Newsweek’s 2012 Green Rankings.
As global leaders commit to emissions reductions, it’s not clear what the future will look like for Peabody Energy. In 2015, the New York attorney general concluded that Peabody had misled investors about the financial risk that climate change posed for the company.
As countries and businesses turned toward renewable energy, lower demand for coal would likely negatively impact Peabody. The next year, Peabody filed for bankruptcy, but returned to the stock exchange in 2017.
Peabody, in its 2018 sustainability report, doesn’t mention emissions, but does note the company’s commitment to “responsible coal mining.”
However, there is a possibility that Peabody might be turning over a new leaf. Last month, it stated that it intended to shift investments from coal to renewable energy. However, until it follows through, it remains on our naught list.
4. Quorn Foods
Quorn Foods promoted their latest offering, the Thai Wonder Grains lunch pot, with the assertion that it contributes to addressing climate change by assisting in the reduction of carbon footprints. However, the advertisement lacked clarity regarding the intended audience for this reduction—leaving consumers uncertain about whether it applied to them.
Upon investigation, it was revealed that the reference to “us” pertained specifically to Quorn Foods, and not the general public. The implication that the product aids in reducing carbon footprints was aimed at the company itself, rather than ordinary individuals who are advised to steer clear of single-use plastic products to make a meaningful impact on their carbon footprint.
An inquiry conducted by the Advertising Standards Authority concluded that the advertisement was misleading. Additionally, the authority highlighted the challenge of assessing the product’s actual impact on Quorn’s carbon footprint, given its novelty in the market at that time.
Sustainability is Becoming a Bigger Concern for 2024
As demand grows, companies will increasingly decide whether or not sustainability is worth the commitment. More energy — sustainable or not — will be needed to meet future requirements.
By the numbers, however, 2021 was good for sustainability and this year might be even better. Nearly one-third of the companies on the 2020 100 Most Sustainable U.S. Companies were new to the list. That figure was even higher in 2021. Gen Z and millennials have much higher expectations for the environmental friendliness of products than older generations, and their demand appears to be driving significant changes.
It’s impossible to know how important sustainability will be in the future. However, companies like Cisco, McCormick & Company and Chr. Hansen suggest that real sustainability is both possible and profitable.
Tagline: Here is a list of the three most and least sustainable businesses.
