Singaporean companies scored the highest marks in Asia in a new ranking of global corporate sustainability, highlighting the city-state's commitment to green living.
Real-estate developer Keppel Land and telecommunications firm Starhub were the only two Asian companies on the top 25 list of Corporate Knights' 'Most Sustainable Corporations' index released on Wednesday.
Corporate Knights, a Canadian investment advisory firm, ranked Keppel Land as the fourth most sustainable company globally, while Starhub came in at 24th.
Sustainability is a term frequently used among biologists and climate change enthusiasts, but in the corporate world it measures how harmonious an organization's interests are with resource efficiency as well as the cultural and physical environment.
"The index rewards corporations that maximize value cre¬ation from scarce resources by calculating resource productivity for water, waste, carbon and energy," Corporate Knights said. "This means that when economic fortunes decline and companies fail to make the necessary adjustments, resource productivity suffers."
100 firms were covered in the annual ranking after being scored on various indicators such as the amount of revenue companies generate per unit of energy consumed, the ratio of CEO to average worker pay and lost-time injury rate.
Overall, American companies dominated the index with 20 firms featured, the country's best showing in the index's 11-year history, Corporate Knights said. American biotech firm Biogen topped the list, followed by Allergan and Germany's Adidas.
"The impressive economic performance of the American economy in the face of global headwinds likely played a factor here," noted Jeremy Runnalls, managing editor at Corporate Knights Magazine.