Top 25 Eco-Friendly Companies in 2024
In this article, we will look at the top 25 eco-friendly companies in 2024. If you want to skip our detailed analysis, you can go directly to the Top 5 Eco-friendly Companies in 2024.
Environmental, Social, and Governance
July 2024 broke the 175-year record reaching unprecedented levels of global temperatures. According to the National Oceanic and Atmospheric Administration, 2024 is likely to be the hottest year on record, beating 2023 which was previously the hottest. This presents a stark reminder that the accumulation of greenhouse gases in our environment is leading to global warming and is changing the climate.
Environmental, Social, and Governance (ESG) is a framework used to assess corporate performance across key factors regarding the environment, society, and corporate governance. It is becoming crucial for businesses seeking long-term success and circularity. KPMG highlights that companies must integrate ESG into their core strategies to excel sustainably. As regulations become more stringent, companies face higher pressure to improve transparency and accountability in their ESG practices. For instance, the EU's Corporate Sustainability Reporting Directive, which came into existence in January 2023, requires all large and publicly listed companies to reveal risks and opportunities associated with social and environmental issues and their impact on the environment and people.
READ ALSO: 15 Countries at Risk of Climate Disaster and 20 Countries with the Most Carbon Dioxide Emissions Per Capita
Corporate's Sustainable Performance
Greenhouse gases are on the rise despite global pledges to reduce them. Climate crises are escalating continuously, but the progress toward carbon neutrality is rather sluggish. However, there seems to be some progress as corporate leaders are increasing their investments in sustainable solutions signifying their commitment to green transition, according to the 2024 report by Corporate Knights.
While many companies, particularly in the fossil fuel and banking sectors, remain immune to major changes, the leaders are doubling down on sustainability. The top-ranked firms in the 2024 Global 100 allocated 55% of their investments to sustainable projects, up from 47% the previous year. The global 100 companies are investing more in energy efficiency, renewable energy, and sustainable solutions compared to the broader publicly listed companies with more than $1 billion in annual revenue. Moreover, these companies earned 51% of their revenues from sustainable sources, higher than the 16% average. Sustainable investments play a pivotal role in the transition to a low-carbon economy.
Apple's Commitment to Sustainable Growth
Apple (NASDAQ:AAPL) not only leads the tech world but is also a frontrunner in sustainability. The iPhone maker reached carbon neutrality in 2020, paving the way for future sustainability goals for companies. Since 2015, the company has reduced its emissions by more than 55% while growing its revenue by 64% at the same time. It promotes the adoption of renewable energy and material circularity by decarbonizing its supply chain. Its commitment to sustainability and eco-friendly practices is evident by its significant efforts to make over 320 suppliers commit to 100% renewable energy consumption for Apple products. It invests heavily in renewable energy and aims to reach 100% clean electricity by 2030. It pledges to match every watt of electricity associated with product use by customers with its renewable energy investments.
The tech leader has also made significant investments in carbon sequestration and removal projects. It aims to invest up to $200 million and remove at least 1 million metric tonnes of CO2 annually. Apple (NASDAQ:AAPL) has supported more than 18 gigawatts of clean energy and delivered billions of gallons of water benefits. Its renewable energy investments have generated over 16.5 gigawatts of clean energy in its supply chain, avoiding more than 18.5 million metric tonnes of carbon emissions. Its conservation efforts have led to 76 billion gallons of water saving since 2013.
Apple's (NASDAQ:AAPL) commitment to sustainability and ESG positions it as a leader in the industry, for other companies to follow suit. It boasts a robust ecosystem of products and services, with over 2 billion installed devices. The company is poised for growth as its attached services such as iCloud, App Store, and Apple Music get adopted more widely. This interconnectedness creates a loyal and engaged clientele, fueling consistent demand. Moreover, its new iPhone 16 series is braced for further growth driven by AI capabilities. Investors believe that the latest satellite connectivity in iMessage will majorly drive iPhone sales.
The ability of Apple (NASDAQ:AAPL) to leverage technological dynamics and ensure sustainable production practices solidifies its commitment to innovation. Baron Opportunity Fund said the following regarding Apple Inc. (NASDAQ: AAPL) in its Q2 2024 investor letter:
"Throughout its 48-year history, Apple has successfully navigated and capitalized on major technological shifts, from PCs to mobile to cloud computing. We believe the company’s leading brand and device ecosystem position it to do equally well in the AI age, and this was the driver of our decision to re-invest. “Apple Intelligence” – the AI strategy unveiled at Apple’s recent Worldwide Developer Conference – leverages on[1]device AI and integrations with tools like ChatGPT to enhance user experiences across its ecosystem. The AI suite enables users to create new images, summarize and generate text, and use Siri to perform actions across their mobile applications, all while maintaining user privacy and security. We think Apple Intelligence can drive accelerated product upgrade cycles and higher demand for Apple services. The combination of growth re-acceleration, increasing services contribution, and thoughtful capital allocation should continue driving long-term shareholder value.”
While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Now, let's look at the top 25 eco-friendly companies in 2024.
An energy executive observing a wind turbine farm from a remote location.
Methodology
To compile our list of the top 25 eco-friendly companies in 2024, we utilized the sustainable investment ratio data for the global 100 companies from Corporate Knights. We then used the purchasing power parity revenue of companies as of 2023 to calculate the absolute sustainable revenue of companies. Finally, we ranked the top 25 eco-friendly companies in 2024 in ascending order of their absolute sustainable revenue.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here)
Top 25 Eco-friendly Companies in 2024
25. Henkel AG & Co. (OTC:HENOF)
Purchasing Power Parity Revenue: $34.5 billion
Sustainable Revenue Ratio: 20.8%
Estimated Absolute Sustainable Revenue: $ 7.17 billion
Henkel AG & Co. (OTC:HENOF) manufactures adhesive, beauty, laundry, and homecare chemicals such as sealants, functional coatings, hair coloring and styling products, body products, detergents, and other cleaners. In 2023, over 20% of its revenue was from sustainable products or services. Henkel AG & Co. (OTC:HENOF) aims to reduce its Scope 1 and 2 emissions by 67% by 2030. It is ranked among the top 25 eco-friendly companies in 2024.
24. Risen Energy Co Ltd (SHE:300118)
Purchasing Power Parity Revenue: $7.3 billion
Sustainable Revenue Ratio: 100%
Estimated Absolute Sustainable Revenue: $7.3 billion
Risen Energy Co Ltd (SHE:300118) manufactures and markets solar modules across China. It also offers solar lamps and energy storage products, and constructs and operates photovoltaic power plants. In 2o23, Risen Energy Co Ltd (SHE:300118) generated 100% of its revenue from sustainable products and services.
23. Yadea Group Holdings Ltd (OTC:YADGF)
Purchasing Power Parity Revenue: $7.7 billion
Sustainable Revenue Ratio: 100%
Estimated Absolute Sustainable Revenue: $7.7 billion
Yadea Group Holdings Ltd (OTC:YADGF) is an investment holding company engaged in the manufacturing and sale of two-wheeled electric vehicles and related accessories in China. It offers electric scooters, electric bicycles, batteries and chargers, and other related parts. Yadea Group Holdings Ltd (OTC:YADGF) is ranked 23rd on our list of the top eco-friendly companies in 2024.
22. Kering SA (OTC:PPRUF)
Purchasing Power Parity Revenue: $31.3 billion
Sustainable Revenue Ratio: 26.5%
Estimated Absolute Sustainable Revenue: $8.3 billion
Kering SA (OTC:PPRUF) offers ready-to-wear fashion products and accessories for both men and women. Kering SA (OTC:PPRUF) is ranked among the most eco-friendly companies in 2024, as it generated 26.5% of its revenue from sustainable products in 2023.
21. Nordex SE (OTC:NRXXY)
Purchasing Power Parity Revenue: $8.8 billion
Sustainable Revenue Ratio: 100%
Estimated Absolute Sustainable Revenue: $8.8 billion
Nordex SE (OTC:NRXXY) is ranked 21st on our list. The company is involved in the manufacturing and distribution of onshore wind turbines. It has set ambitious goals for itself to reach carbon neutrality. Nordex SE (OTC:NRXXY) significantly reduced its Scope 1 and Scope 2 emissions and avoided approximately 69 million tonnes of carbon dioxide emissions in 2023.
20. Hewlett Packard Enterprise Company (NYSE:HPE)
Purchasing Power Parity Revenue: $28.5 billion
Sustainable Revenue Ratio: 33.1%
Estimated Absolute Sustainable Revenue: $9.4 billion
Hewlett Packard Enterprise Company (NYSE:HPE) is one of the most sustainable companies, boasting a sustainable revenue of 33.1%. The information technology company operates across various segments including storage, financial services, computing, Intelligent Edge, and corporate investments, among others. Hewlett Packard Enterprise Company (NYSE:HPE) also provides sustainable IT expertise and low-carbon analytics that help to reduce energy consumption and carbon footprint.
19. Li Auto Inc (NASDAQ:LI)
Purchasing Power Parity Revenue: $11.3 billion
Sustainable Revenue Ratio: 100%
Estimated Absolute Sustainable Revenue: $11.3 billion
Li Auto Inc (NASDAQ:LI) designs, manufactures, and sells smart electric vehicles in China. Its products include multipurpose vehicles and sport utility vehicles. In 2023, Li Auto Inc (NASDAQ:LI) generated 100% of its revenue from sustainable products.
18. Ricoh Company, Ltd. (OTC:RICOY)
Purchasing Power Parity Revenue: $22.4 billion
Sustainable Revenue Ratio: 50.8%
Estimated Absolute Sustainable Revenue: $11.4 billion
Ricoh Company, Ltd. (OTC:RICOY) is an imaging and electronics company. It provides commercial printing, digital services and products, and graphic communication. Its products include multifunctional printers, laser printers, facsimile machines, network equipment, cut sheet printers, continuous feed printers, inkjet heads, imaging systems, industrial printers, and related parts and supplies. Ricoh Company, Ltd.'s (OTC:RICOY) sustainable revenue was 50.8% of its total revenue in 2023.
17. NIO Inc. (NYSE:NIO)
Purchasing Power Parity Revenue: $12.3 billion
Sustainable Revenue Ratio: 100%
Estimated Absolute Sustainable Revenue: $12.3 billion
NIO Inc. (NYSE:NIO) is involved in the manufacturing and sale of smart electric vehicles in China. The EV maker offers five and six-seater SUVs and smart EV sedans as well. Its other solutions include home charging, battery swapping services, power chargers, mobile charging services, and other related services. NIO Inc. (NYSE:NIO) delivered 160,038 vehicles in 2023, up 30.7% from the previous year. It is ranked among the top eco-friendly companies in 2024.
16. Ørsted A/S (OTC:DNNGY)
Purchasing Power Parity Revenue: $20.9 billion
Sustainable Revenue Ratio: 65%
Estimated Absolute Sustainable Revenue: $13.6 billion
Ørsted A/S (OTC:DNNGY) is a renewable energy company that develops and operates offshore and onshore wind farms, solar farms, energy storage facilities, green fuel, renewable hydrogen, and bioenergy plants. Ørsted A/S (OTC:DNNGY) aims to have 35-38 gigawatts of renewable capacity by 2030, including a 20-22 gigawatts offshore wind capacity. 65% of its revenue was from sustainable products and services in 2023.
15. SAP SE (NYSE:SAP)
Purchasing Power Parity Revenue: $47.6 billion
Sustainable Revenue Ratio: 29.9%
Estimated Absolute Sustainable Revenue: $14.2 billion
SAP SE (NYSE:SAP) offers software solutions for enterprises including software capabilities for finance, risk and project management, procurement, manufacturing, supply chain, asset management, and research and development. Its other solutions include talent management, HR and payroll, and workforce analytics. SAP SE (NYSE:SAP) generated nearly 30% of its revenue from sustainable products and services.
14. Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC)
Purchasing Power Parity Revenue: $31.3 billion
Sustainable Revenue Ratio: 46.8%
Estimated Absolute Sustainable Revenue: $14.6 billion
Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) offers mobile connectivity for telecom operators and enterprises. Its key business segments include networks, cloud services, and software, and enterprise. Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) aims to achieve net zero emissions by 2040 across its entire value chain. It also aims to provide internet access to communities lacking it. In 2023, 46.8% of its revenue was generated from sustainable services and products.
13. Banco do Brasil S.A. (OTC:BDORY)
Purchasing Power Parity Revenue: $52.5 billion
Sustainable Revenue Ratio: 28.6%
Estimated Absolute Sustainable Revenue: $15 billion
Banco do Brasil S.A. (OTC:BDORY) offers banking and financial services for individual customers, enterprises, and the public sector. Its key business areas are banking resource management, payment methods, capitalization, pension, investment, and insurance. Banco do Brasil S.A. (OTC:BDORY) is ranked 13th on our list as it generated 28.6% of its revenue from sustainable products and services in 2023.
12. Neste Oyj (OTC:NTOIY)
Purchasing Power Parity Revenue: $39.6 billion
Sustainable Revenue Ratio: 38.9%
Estimated Absolute Sustainable Revenue: $15.4 billion
Neste Oyj (OTC:NTOIY) is a renewable energy company involved in the production of renewable diesel and sustainable aviation fuel. The low-carbon fuel producer operates in key segments renewable and oil products. Its renewable products include renewable diesel, sustainable aviation fuel, renewable solvents, and feedstock for bioplastics. Neste Oyj (OTC:NTOIY) has an annual renewable capacity of 5.5 million tonnes, and it aims to increase it to 6.8 million tonnes annually by 2026. It is ranked 12th on our list.
11. Sanofi (NASDAQ:SNY)
Purchasing Power Parity Revenue: $66.3 billion
Sustainable Revenue Ratio: 27.2%
Estimated Absolute Sustainable Revenue: $18 billion
Sanofi (NASDAQ:SNY) is a healthcare company involved in operations like R&D, manufacturing, and marketing of therapeutic solutions. Sanofi (NASDAQ:SNY) is committed to providing sustainable healthcare. It also provides sustainability-linked bonds and credit facilities. In 2023, 27.2% of its revenue was from eco-friendly products and services.
10. Alstom SA (OTC:ALSMY)
Purchasing Power Parity Revenue: $25.4 billion
Sustainable Revenue Ratio: 84%
Estimated Absolute Sustainable Revenue: $21.4billion
Alstom SA (OTC:ALSMY) is involved in the manufacturing of monorails, light rails, metros, commuter trains, regional trains, high-speed trains, and locomotives. It also provides maintenance services for trains, and sells its parts. In 2023, Alstom SA (OTC:ALSMY) generated $21.4 billion in sustainable revenue. It is one of the top eco-friendly companies in 2024.
9. Samsung SDI Co Ltd (KRX:006400)
Purchasing Power Parity Revenue: $24.7 billion
Sustainable Revenue Ratio: 87.3%
Estimated Absolute Sustainable Revenue: $21.5 billion
Samsung SDI Co Ltd (KRX:006400) is involved in the manufacturing and sale of batteries across the globe. It provides lithium-ion batteries used in smartphones, tablets, laptops, and other devices including electric bikes and scooters. Other products of Samsung SDI Co Ltd (KRX:006400) include ignition products, energy storage systems, and automotive batteries. In 2023, it generated $21.5 billion in sustainable revenue.
8. Cisco Systems, Inc. (NASDAQ:CSCO)
Purchasing Power Parity Revenue: $51.5 billion
Sustainable Revenue Ratio: 41.8%
Estimated Absolute Sustainable Revenue: $21.5 billion
Cisco Systems, Inc. (NASDAQ:CSCO) is involved in the manufacturing and sale of Internet protocol-based networking and other communication and information technology-related products. It aims to achieve net zero emissions by 2040 and also incorporate circularity in 100% of its new products and packaging by 2025. Moreover, it pledges to invest $100 million in climate solutions. The sustainable revenue of Cisco Systems, Inc. (NASDAQ:CSCO) was $21.5 billion in 2023.
7. Vestas Wind Systems (OTC:VWDRY)
Purchasing Power Parity Revenue: $22.3 billion
Sustainable Revenue Ratio: 100%
Estimated Absolute Sustainable Revenue: $22.3 billion
Vestas Wind Systems (OTC:VWDRY) manufactures and installs wind turbines. It operates across two key segments: power solutions and service. Vestas Wind Systems' (OTC:VWDRY) offerings include onshore and offshore wind power plants, turbines, development sites, service contracts, and spare parts. It has over 170 gigawatts of installed onshore capacity. 100% of its revenue is generated from eco-friendly products. It has over 170 gigawatts of installed onshore capacity.
6. Bank of China Limited (OTC:BACHF)
Purchasing Power Parity Revenue: $153.9 billion
Sustainable Revenue Ratio: 16.9%
Estimated Absolute Sustainable Revenue: $25.9 billion
Bank of China Limited (OTC:BACHF) provides banking and financial services. Its core business segments include corporate and personal banking, treasury, investment, and insurance. Nearly 17% of its revenue, which amounts to $25.9 billion, was from sustainable sources in 2023.
5. XPeng Inc. (NYSE:XPEV)
Purchasing Power Parity Revenue: $26.8 billion
Sustainable Revenue Ratio: 100%
Estimated Absolute Sustainable Revenue: $26.8 billion
XPeng Inc. (NYSE:XPEV) is involved in the design, manufacturing, and sale of smart electric vehicles in China. It offers electric SUVs and sedans and also provides supercharging, auto financing, maintenance, and technology support. XPeng Inc. (NYSE:XPEV) delivered 141,601 vehicles in 2023, up 17% from 2022. 100% of its revenue is generated from sustainable products and services.
4. Schneider Electric S.E. (OTC:SBGSY)
Purchasing Power Parity Revenue: $52.7 billion
Sustainable Revenue Ratio: 72%
Estimated Absolute Sustainable Revenue: $37.9 billion
Schneider Electric S.E. (OTC:SBGSY) is an energy management and industrial automation firm. It is involved in the production of inverters, solar panels, solar equipment, wind farm microgrids, power metering systems, and smart monitoring solutions, among others. The company aims to reach net zero carbon emissions across its entire value chain by 2050. In 2023, Schneider Electric S.E. (OTC:SBGSY) generated $37.9 billion in sustainable revenue.
3. HP Inc. (NYSE:HPQ)
Purchasing Power Parity Revenue: $62.9 billion
Sustainable Revenue Ratio: 77.8%
Estimated Absolute Sustainable Revenue: $48.9 billion
HP Inc. (NYSE:HPQ) offers personal computing, imaging products, digital access devices, and other related technologies and services. HP Inc. (NYSE:HPQ) reduced its Scope 1 and 2 emissions by 62% in 2023. It aims to reduce its emissions by 65% by 2025. and reach 75% circularity for products and packaging by 2030. Its sustainable revenue was $48.9 billion in 2023.
2. Tesla, Inc. (NASDAQ:TSLA)
Purchasing Power Parity Revenue: $81.5 billion
Sustainable Revenue Ratio: 100%
Estimated Absolute Sustainable Revenue: $81.5 billion
Tesla, Inc. (NASDAQ:TSLA) is a leader in the electric vehicles market. In 2023, 100% of its revenue was generated from sustainable products and services. The company delivered 1.81 million electric vehicles in 2023. Tesla, Inc. (NASDAQ:TSLA) is the 2nd most eco-friendly company on our list.
1. Apple Inc. (NASDAQ:AAPL)
Purchasing Power Parity Revenue: $394.3 billion
Sustainable Revenue Ratio: 69.7%
Estimated Absolute Sustainable Revenue: $274.9 billion
Apple Inc. (NASDAQ:AAPL) is ranked 1st on our list of the top eco-friendly companies in 2024. In 2023, it generated nearly 70% of its revenue from sustainable products and services. Its estimated absolute sustainable revenue reached $274.9 billion in 2023.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article was originally published at Insider Monkey.