Carbon Clean 200™:
Investing in a Clean Energy Future
2018 Q3 Performance Update
Foreword
** As You Sow and Corporate Knights are not investment advisors, nor do we provide financial planning, legal or tax advice. Nothing in the Carbon Clean 200 Report shall constitute or be construed as an offering of financial instruments, or as investment advice or investment recommendations. Read our full disclaimer.**
We are pleased to present the 2018 Q3 Clean200™ list of publicly traded companies that are leading the way with solutions for the transition to a clean energy future.
Since our first report was launched in the summer of 2016, a great deal has changed in the world. Mainstream investors around the world have joined the march away from fossil fuels to clean energy and the big automakers are racing toward a fossil free future. In fact, the CEO of Shell announced he is going electric for his next car.
In the past 12 months, almost every major automaker announced major investments in an electric future. The head of product of the company which was previously the trivia answer to “Who killed the electric car?” announced “General Motors believes the future is all-electric,” with several other major auto companies promising to electrify (which can mean fully electric or hybrid) their entire portfolio including Volkswagen (by 2030), Toyota (by 2025), Daimler (by 2022), and Volvo (by 2019). Governments whose people are choking on polluted air are pumping this handcar of change, with China and India both announcing ambitions to phase out fossil fuel cars by 2030.
That being said, these are still turbulent times for the renewable energy sector and global markets in general. After a long period of outperforming the S&P Global 1200 Energy Index (fossil fuel benchmark), the Clean200 fell behind in June this year. The escalating trade war between the US and China targets specific Clean200 categories (including electricity transformers, lithium batteries, and LEDs) and has taken a heavy toll on Chinese stocks across the board, with the Shanghai Stock Exchange Composite Index plunging 18% year-to-date. Additionally, as the solar industry matures and is now cost competitive with coal and gas power, the Chinese government moved this June to slash solar subsidies and quotas leading to major drops in solar industry stock prices. In addition, oil prices have been steadily rising since early 2016.
Source: Bloomberg, Corporate Knights
As oil prices surged, Clean200 stocks fell behind its benchmark in June for the just the second time since inception 2 years ago.
Overall, the model we presented in the form of the Clean200 continues to indicate that demand and market forces are driving continued investment into a clean energy sector and the cost of clean technology continues to drop. The Clean200 Index is up 16.5% since its inception 2 years ago.
Controlling for the China-effect, the Clean200 ex-China continued to outperform, generating a 35.2% return over the past two years compared to its fossil fuel benchmark, the S&P 1200 Global Energy Index, which returned 23.5%. This is an unexpected result given the recent up-cycle in oil prices, and suggests that investor expectations are increasingly gathering behind a low-carbon clean energy future.
Source: Bloomberg, Corporate Knights
The Clean200, excluding China, generated a 35.2% return over the past two years compared to its fossil fuel benchmark, the S&P 1200 Global Energy Index, which returned 23.5%.
It will be very interesting to see how the trends unfold over the next few months.
| GICS Sector | # of Clean200 Companies |
|---|---|
|
Industrials |
80 |
|
Information Technology |
45 |
|
Utilities |
30 |
|
Consumer Discretionary |
17 |
|
Materials |
17 |
|
Consumer Staples |
4 |
|
Energy |
2 |
|
Financials |
2 |
|
Health Care |
2 |
|
Telecommunication Services |
1 |
CLEAN 200 Companies by Country
| Country | # of Clean200 companies |
|---|---|
|
China |
52 |
|
United States of America |
34 |
|
Japan |
19 |
|
Germany |
9 |
|
Hong Kong SAR |
8 |
|
South Korea |
7 |
|
Taiwan |
6 |
|
Canada |
5 |
|
India |
5 |
|
Spain |
5 |
|
Sweden |
5 |
|
Brazil |
4 |
|
Denmark |
4 |
|
Republic of Ireland |
4 |
|
Switzerland |
4 |
|
United Kingdom |
4 |
|
Netherlands |
3 |
|
New Zealand |
3 |
|
Finland |
2 |
|
France |
2 |
|
Philippines |
2 |
|
Thailand |
2 |
|
Australia |
1 |
|
Austria |
1 |
|
Belgium |
1 |
|
Bermuda |
1 |
|
Chile |
1 |
|
Greece |
1 |
|
Israel |
1 |
|
Italy |
1 |
|
Kuwait |
1 |
|
Mexico |
1 |
|
Turkey |
1 |
THE CLEAN 200™ Methodology
The Clean200: The biggest 200 public companies ranked by green energy revenues, was first calculated on July 1, 2016 and publicly released on August 15, 2016 by Corporate Knights and As You Sow and now updated with data through the third quarter of 2018 (June 30, 2018).
The Clean200 are listed by their estimated green revenues in USD. The dataset is developed by multiplying a company’s most recent year-end revenues by its BNEF New Energy Exposure Rating mid-point. In cases where companies disclosed their clean energy revenues, this number was verified to ensure consistency and, in some cases, used to override the BNEF data. In order to be eligible, a company must have a market capitalization greater than $1 billion (end of Q1 2018) and earn more than 10% of total revenues from New Energy sources.
The Clean200 uses negative screens. It excludes all oil and gas companies and utilities that generate less than 50% of their power from green sources, as well as the top 100 coal companies measured by reserves, top 100 weapons producers, as well as laggards on tropical deforestation, and child or forced labor and companies who engage in negative climate lobbying.
| Clean200 Negative Screens | Criteria | Number of Companies Excluded |
|---|---|---|
|
Non-Green Utilities |
Any utility that derives less than 50% revenue from green sources |
39 |
|
Tropical Forest Harm |
Scores less than 4 on Forest 500 scale or are on the As you Sow/Friends of the Earth Deforestation Free Funds Tool |
6 |
|
Oil and Gas |
SASB SICS Subsector = oil & gas |
5 |
|
Coal 100 |
Top 100 companies by coal reserves |
3 |
|
Top 100 Weapons |
The SIPRI Top 100 arms-producing and military services companies in the world |
3 |
|
Child/Forced labour |
Scores in bottom half of Know the Chain rating |
3 |
|
Negative Climate Lobbying |
Scores E or lower on Influence Map rating |
0 |
THE CLEAN 200™ List
| Rank | Name | Country | Sector |
|---|---|---|---|
|
1 |
Toyota Motor |
Japan |
Consumer Discretionary |
|
2 |
Siemens Ag-Reg |
Germany |
Industrials |
|
3 |
Schneider Electr |
France |
Industrials |
|
4 |
Panasonic Corp |
Japan |
Consumer Discretionary |
|
5 |
Vestas Wind Syst |
Denmark |
Industrials |
|
6 |
Tesla Inc |
United States of America |
Consumer Discretionary |
|
7 |
Innogy Se |
Germany |
Utilities |
|
8 |
Bombardier Inc-B |
Canada |
Industrials |
|
9 |
Sse Plc |
United Kingdom |
Utilities |
|
10 |
Signify Nv |
Netherlands |
Industrials |
|
11 |
Abb Ltd-Reg |
Switzerland |
Industrials |
|
12 |
Emerson Elec Co |
United States of America |
Industrials |
|
13 |
Umicore |
Belgium |
Materials |
|
14 |
Lg Chem Ltd |
Korea; Republic (S. Korea) |
Materials |
|
15 |
Siemens Gamesa R |
Spain |
Industrials |
|
16 |
Johnson Controls |
Ireland; Republic of |
Industrials |
|
17 |
Eaton Corp Plc |
Ireland; Republic of |
Industrials |
|
18 |
Koninklijke Phil |
Netherlands |
Health Care |
|
19 |
Orsted A/S |
Denmark |
Utilities |
|
20 |
Osram Licht Ag |
Germany |
Industrials |
|
21 |
Kingspan Group |
Ireland; Republic of |
Industrials |
|
22 |
Acciona Sa |
Spain |
Utilities |
|
23 |
Xinjiang Gold-A |
China |
Industrials |
|
24 |
China Longyuan-H |
China |
Utilities |
|
25 |
Gcl-Poly Energy |
Hong Kong |
Information Technology |
|
26 |
Byd Co Ltd-H |
China |
Consumer Discretionary |
|
27 |
China Everbr Int |
Hong Kong |
Industrials |
|
28 |
Nordex Se |
Germany |
Industrials |
|
29 |
Brookfield Renew |
Bermuda |
Utilities |
|
30 |
Spie Sa |
France |
Industrials |
|
31 |
Acuity Brands |
United States of America |
Industrials |
|
32 |
Andritz Ag |
Austria |
Industrials |
|
33 |
Ingersoll-Rand |
Ireland; Republic of |
Industrials |
|
34 |
Kyocera Corp |
Japan |
Information Technology |
|
35 |
First Solar Inc |
United States of America |
Information Technology |
|
36 |
Doosan Heavy |
Korea; Republic (S. Korea) |
Industrials |
|
37 |
Te Connectivity |
Switzerland |
Information Technology |
|
38 |
Tbea Co Ltd-A |
China |
Industrials |
|
39 |
Samsung Sdi Co |
Korea; Republic (S. Korea) |
Information Technology |
|
40 |
Wacker Chemie Ag |
Germany |
Materials |
|
41 |
Eletrobras |
Brazil |
Utilities |
|
42 |
Rockwool Intl-B |
Denmark |
Industrials |
|
43 |
Shin-Etsu Chem |
Japan |
Materials |
|
44 |
China Agri-Indus |
Hong Kong |
Consumer Staples |
|
45 |
Nidec Corp |
Japan |
Industrials |
|
46 |
Sunpower Corp |
United States of America |
Information Technology |
|
47 |
Applied Material |
United States of America |
Information Technology |
|
48 |
Longi Green En-A |
China |
Information Technology |
|
49 |
Sumitomo Forest |
Japan |
Consumer Discretionary |
|
50 |
Covanta Holding |
United States of America |
Industrials |
|
51 |
Republic Svcs |
United States of America |
Industrials |
|
52 |
Ebara Corp |
Japan |
Industrials |
|
53 |
Nibe Industrie-B |
Sweden |
Industrials |
|
54 |
Borgwarner Inc |
United States of America |
Consumer Discretionary |
|
55 |
Quanta Services |
United States of America |
Industrials |
|
56 |
Novozymes-B Shs |
Denmark |
Materials |
|
57 |
Gcl System Int-A |
China |
Information Technology |
|
58 |
Prysmian Spa |
Italy |
Industrials |
|
59 |
Itron Inc |
United States of America |
Information Technology |
|
60 |
Tianneng Power |
China |
Consumer Discretionary |
|
61 |
Sino-American |
Taiwan |
Information Technology |
|
62 |
Ls Corp |
Korea; Republic (S. Korea) |
Industrials |
|
63 |
Hanwha Chem Corp |
Korea; Republic (S. Korea) |
Materials |
|
64 |
Edp Renovaveis S |
Spain |
Utilities |
|
65 |
Nari Technolog-A |
China |
Industrials |
|
66 |
Emcor Group Inc |
United States of America |
Industrials |
|
67 |
Zhejiang Chint-A |
China |
Industrials |
|
68 |
Xinte Energy C-H |
China |
Industrials |
|
69 |
Risen Energy-A |
China |
Information Technology |
|
70 |
Delta Elec |
Taiwan |
Information Technology |
|
71 |
Landis+Gyr Group |
Switzerland |
Information Technology |
|
72 |
Infineon Tech |
Germany |
Information Technology |
|
73 |
Cree Inc |
United States of America |
Information Technology |
|
74 |
Suedzucker Ag |
Germany |
Consumer Staples |
|
75 |
Hella Gmbh & Co |
Germany |
Consumer Discretionary |
|
76 |
Dic Corp |
Japan |
Materials |
|
77 |
Oci Co Ltd |
Korea; Republic (S. Korea) |
Materials |
|
78 |
Huaneng Renewa-H |
China |
Utilities |
|
79 |
Xj Electric-A |
China |
Industrials |
|
80 |
Azbil Corp |
Japan |
Information Technology |
|
81 |
Owens Corning |
United States of America |
Industrials |
|
82 |
Xiangtan Elec-A |
China |
Industrials |
|
83 |
Tianjin Zhong-A |
China |
Information Technology |
|
84 |
Kanematsu Corp |
Japan |
Industrials |
|
85 |
Jiangsu Zhongl-A |
China |
Industrials |
|
86 |
Mercury Nz Ltd |
New Zealand |
Utilities |
|
87 |
Avangrid Inc |
United States of America |
Utilities |
|
88 |
Hitachi High Tec |
Japan |
Information Technology |
|
89 |
Sungrow Power -A |
China |
Industrials |
|
90 |
Bj Ent Clean |
Hong Kong |
Materials |
|
91 |
Caverion Oyj |
Finland |
Industrials |
|
92 |
Huadian Fuxin -H |
China |
Utilities |
|
93 |
Sanan Optoelec-A |
China |
Information Technology |
|
94 |
Xinyi Solar Hlds |
China |
Information Technology |
|
95 |
China High-Speed |
Hong Kong |
Industrials |
|
96 |
Mls Co Ltd-A |
China |
Information Technology |
|
97 |
Suzhou Dongsha-A |
China |
Information Technology |
|
98 |
Tofas |
Turkey |
Consumer Discretionary |
|
99 |
Delphi Technolog |
United Kingdom |
Consumer Discretionary |
|
100 |
China Datang C-H |
China |
Utilities |
|
101 |
Cnpc Capital C-A |
China |
Industrials |
|
102 |
Dongfang Elect-A |
China |
Industrials |
|
103 |
Nemak Sab De Cv |
Mexico |
Consumer Discretionary |
|
104 |
Atlantica Yield |
United Kingdom |
Utilities |
|
105 |
Sma Solar Techno |
Germany |
Information Technology |
|
106 |
Kinden Corp |
Japan |
Industrials |
|
107 |
Bharat Heavy Ele |
India |
Industrials |
|
108 |
Tpi Composites I |
United States of America |
Industrials |
|
109 |
Zhongtian Tech-A |
China |
Industrials |
|
110 |
Hongfa Technol-A |
China |
Industrials |
|
111 |
Wuxi Taiji Ind-A |
China |
Information Technology |
|
112 |
Terraform Powe-A |
United States of America |
Utilities |
|
113 |
First Gen Corpor |
Philippines |
Utilities |
|
114 |
Andersons Inc |
United States of America |
Consumer Staples |
|
115 |
Epistar |
Taiwan |
Information Technology |
|
116 |
Arcadis Nv |
Netherlands |
Industrials |
|
117 |
Stanley Elec Co |
Japan |
Consumer Discretionary |
|
118 |
Valmet Oyj |
Finland |
Industrials |
|
119 |
Nextera Energy P |
United States of America |
Utilities |
|
120 |
Sacyr Sa |
Spain |
Industrials |
|
121 |
Ningbo Sanxing-A |
China |
Industrials |
|
122 |
Hitachi Capital |
Japan |
Financials |
|
123 |
Analog Devices |
United States of America |
Information Technology |
|
124 |
Mobile Telecommu |
Kuwait |
Telecommunication Services |
|
125 |
China Shipbuil-A |
China |
Consumer Discretionary |
|
126 |
Regal Beloit Cor |
United States of America |
Industrials |
|
127 |
Gs Yuasa Corp |
Japan |
Industrials |
|
128 |
Global Wafers |
Taiwan |
Information Technology |
|
129 |
Rohm Co Ltd |
Japan |
Information Technology |
|
130 |
Jiangsu Akcome-A |
China |
Information Technology |
|
131 |
Chongqing Soko-A |
China |
Consumer Discretionary |
|
132 |
Guoxuan High-Tec |
China |
Industrials |
|
133 |
Ormat Technologi |
United States of America |
Utilities |
|
134 |
Timken Co |
United States of America |
Industrials |
|
135 |
Smith (A.O.)Corp |
United States of America |
Industrials |
|
136 |
Weg Sa |
Brazil |
Industrials |
|
137 |
Hangzhou First-A |
China |
Information Technology |
|
138 |
Sao Martinho |
Brazil |
Consumer Staples |
|
139 |
Energy Developme |
Philippines |
Utilities |
|
140 |
Oc Oerlikon Corp |
Switzerland |
Industrials |
|
141 |
Shenzhen Clou-A |
China |
Industrials |
|
142 |
Tokuyama Corp |
Japan |
Materials |
|
143 |
Kyowa Exeo Corp |
Japan |
Industrials |
|
144 |
Cpfl Energias Re |
Brazil |
Utilities |
|
145 |
Solaredge Techno |
Israel |
Information Technology |
|
146 |
Trimble Inc |
United States of America |
Information Technology |
|
147 |
China Everbright |
Hong Kong |
Utilities |
|
148 |
Tetra Tech Inc |
United States of America |
Industrials |
|
149 |
Far East Smart-A |
China |
Industrials |
|
150 |
Nfi Group Inc |
Canada |
Industrials |
|
151 |
East Group Co-A |
China |
Information Technology |
|
152 |
Sunrun Inc |
United States of America |
Industrials |
|
153 |
Sumco Corp |
Japan |
Information Technology |
|
154 |
China Suntien-H |
China |
Energy |
|
155 |
Perkinelmer Inc |
United States of America |
Health Care |
|
156 |
China Baoan-A |
China |
Industrials |
|
157 |
Badger Meter Inc |
United States of America |
Information Technology |
|
158 |
Jiangxi Specia-A |
China |
Industrials |
|
159 |
Soquimich-B |
Chile |
Materials |
|
160 |
China Xd Elec-A |
China |
Industrials |
|
161 |
Titan Wind-A |
China |
Industrials |
|
162 |
Shenzhen Kaifa-A |
China |
Information Technology |
|
163 |
Transalta Renewa |
Canada |
Utilities |
|
164 |
Woodward Inc |
United States of America |
Industrials |
|
165 |
Jm Ab |
Sweden |
Consumer Discretionary |
|
166 |
Cofco Biochem -A |
China |
Materials |
|
167 |
Hexcel Corp |
United States of America |
Industrials |
|
168 |
Sweco Ab-B |
Sweden |
Industrials |
|
169 |
Universal Displa |
United States of America |
Information Technology |
|
170 |
Hexing Electri-A |
China |
Information Technology |
|
171 |
Svenska Cell-B |
Sweden |
Materials |
|
172 |
Hengdian Dmegc-A |
China |
Information Technology |
|
173 |
Tata Chemicals |
India |
Materials |
|
174 |
Simplo Tech |
Taiwan |
Information Technology |
|
175 |
Xinyi Glass |
Hong Kong |
Consumer Discretionary |
|
176 |
Csr Ltd |
Australia |
Materials |
|
177 |
Innergex Renewab |
Canada |
Utilities |
|
178 |
Comfort Systems |
United States of America |
Industrials |
|
179 |
Mytilineos Hldgs |
Greece |
Industrials |
|
180 |
Pattern Ener -A |
United States of America |
Utilities |
|
181 |
Hc Semitek Cor-A |
China |
Information Technology |
|
182 |
Teco Elec & Mach |
Taiwan |
Industrials |
|
183 |
Exide Indus Ltd |
India |
Consumer Discretionary |
|
184 |
Beijing New Bu-A |
China |
Industrials |
|
185 |
Baonengyuan-A |
China |
Utilities |
|
186 |
Saeta Yield Sa |
Spain |
Utilities |
|
187 |
Csg Holding Co-B |
China |
Materials |
|
188 |
Meridian Energy |
New Zealand |
Utilities |
|
189 |
L&F Co Ltd |
Korea; Republic (S. Korea) |
Information Technology |
|
190 |
Idfc Ltd |
India |
Financials |
|
191 |
Energy Absolute |
Thailand |
Energy |
|
192 |
Guangdong Dong-A |
China |
Industrials |
|
193 |
China Northern-A |
China |
Materials |
|
194 |
Delta Elec Thai |
Thailand |
Information Technology |
|
195 |
Thermax Ltd |
India |
Industrials |
|
196 |
Boralex Inc -A |
Canada |
Utilities |
|
197 |
Canvest Env |
Hong Kong |
Utilities |
|
198 |
Trustpower Ltd |
New Zealand |
Utilities |
|
199 |
Dialog Semicond |
United Kingdom |
Information Technology |
|
200 |
Fagerhult Ab |
Sweden |
Industrials |
Clean200 2018 Q3 Update: Investing in a Clean Energy Future by Toby Heaps, Michael Yow, Andrew Behar is licensed under a Creative Commons Attribution 4.0 International License.
Based on a work at https://www.asyousow.org/report/clean200-2018-q3
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