Todd Cort, CEO of Two Tomorrows
North America

Some of the world’s leading companies recognised for their sustainability efforts are still at risk of being accused of green-wash.

A new report, the 2011 Tomorrow’s Value Rating, from international corporate sustainability agency, Two Tomorrows Group, reveals that there is a danger that leading companies are taking existing practices and passing them under the sustainability lens to give a compelling green picture of the company.

Whilst these practices may have positive environmental impacts, they are fundamentally profit driven. The 2011 Tomorrow’s Value Rating warns that this can turn to green-wash when the sticky issues are ignored or given little consideration.

By looking at the sustainability practices of the world’s most prominent companies, the 2011 Tomorrow’s Value Rating uncovers the extent to which the companies widely recognised as sustainability leaders deserve their place within the leading sustainability rankings. And it shows which companies are likely to deliver long-term investment value thanks to their sustainable practices.

“We believe that the strongest companies of tomorrow are those with the best sustainability practices today, so naturally we should expect great things from those at the top of that list,” says Todd Cort, CEO of Two Tomorrows North America, who led the rating programme. “True sustainability leaders are companies which do not just manage their sticky issues, they embrace them.”

The 2011 Tomorrow’s Value Rating Aaa-rated companies are:

Campbell’s, Danone, General Electric, Glaxosmithkline, HP, Intel, Nestlé, Nike, Panasonic, Siemens, and Unilever.

Mark Line, Executive Chairman, Two Tomorrows Group, adds, “None of our leading companies are held back by fundamental questions about their sustainability. Where there are concerns, we can see that they have mapped out a clear path to transitioning their business into a different model.

“Our leaders are starting to go one step further than the rest of the pack, such that their machinery for delivering sustainability is becoming part of the way they do business.

“Their staff and management get it and they want it. These companies tend to exhibit huge brand strength – and they have wedded their sustainability approach to all of those things that made their brand strong in the first place.”

Summary of findings:

Innovation is the cutting edge of sustainability

Game-changing innovation to integrate environmental and socio-economic benefits into the heart of business strategy is a must for any company wishing to become truly sustainable.

Leaders consider the whole value chain

Sustainability leaders are widening their focus from their own operations to the entire value chain. They are placing pressure on suppliers to follow suit.

The very best companies are embedding sustainability in core decision-making

While it is difficult to prove that a company is ethical, there are means to demonstrate to external observers that, when push comes to shove, sustainability issues will be considered alongside the financial implications of any business decision. What stakeholders want to know is that ethics will not be conveniently ignored when the opportunity for profit is present.

Paucity of targets is symptomatic of a lack of direction

Rapid change is a must for the sustainable company, but there are indications among the rated companies that this change is largely without direction. One of the most telling signs is the surprising lack of meaningful targets. This leaves stakeholders unable to judge whether a company has been successful with its sustainability commitments.

The full list of rated companies can be found at www.tomorrowsvaluerating.com.

Notes to editors

Two Tomorrows does not recommend or endorse any specific investment and does not provide advice on investment options. Two Tomorrows is rendering professional opinion and assumes no liability whatsoever in connection with its use. It is the responsibility of the reader to evaluate the accuracy, completeness and usefulness of any opinions, advice or other information provided 

Companies were selected to be in the Tomorrow’s Value Rating for 2011 based on recognition as a strong performer in sustainability based on inclusion in three or more of the following rankings:

2011 Corporate Knights 100 Most Sustainable Corporations
Top 100 in the 2010 Newsweek Green Ranking
2010 CRO Best Corporate Citizens
2011 Ethisphere Most Ethical Companies
2010 Interbrand Best Global Brands
2011 DJSI World Leaders Index

Companies that feature in the 2011 Fortune Global 100, and are listed in two or more of the above indices, are also included.

Methodology of the 2011 Tomorrow’s Value Rating

Responsible companies must be transparent. Therefore, we only consider publicly available information. We review sustainability report (or equivalent), annual financial report and group website for information to conduct our assessments.

Ratings should be transparent. We have listed the full set of criteria questions on our website www.tomorrowsvaluerating.com. We have also named the rating team that conducted the research.

Long-term investment value stems from strong sustainable practices, systems and tools. Therefore, our assessment questions focus on the systems and practices of sustainability. A company’s report and communications techniques are only the windows for us and other stakeholders to see these practices.

Strong sustainability practices will lead to better long-term financial performance. Therefore, our scoring scale reflects those used by credit agencies: investment grade (Aaa, Aa, Baa) and speculative grade (Ba, B, Caa, Ca and C).

The benchmark for sustainability should be best practice. Therefore, we take a list of companies that have already been highlighted as good practitioners, and we raise the bar of comparison to assess which companies can truly deliver long-term value through sustainability, and which are unlikely to fulfil that potential.

Insight into sustainability, just like investment value, requires expert knowledge. Therefore, we have eschewed the trend to toward yes/no, tick-box questions. We do not ask if companies have an environmental policy, we wish to understand if the policy and other mechanisms will be effective to achieve environmental protections. We rely on the expertise of our team and the quality of our criteria, not box ticking.

DNV Two Tomorrows

DNV Two Tomorrows

DNV Two Tomorrows is an international corporate sustainability agency, delivering deep insight, strategic advice and pragmatic support to companies, enabling them to create long-term value by doing business sustainably.

Highly experienced consultants help clients with the full range of sustainability corporate responsibility issues, with services including strategy, training, reporting and assurance. Two Tomorrows has world-leading expertise and many years of hard-won knowledge in issues as diverse as responsible sourcing, producer responsibility, carbon strategy, water management, biodiversity, human rights as well as bribery and corruption.

DNV is a global provider of services for managing risk, with safeguarding life, property and the environment as its purpose. DNV acquired the Two Tomorrows Group in May 2012.

www.twotomorrows.com / www.dnv.com

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