The 2012 GEMS Analysis, a recent study evaluating environmental policies and infrastructure has found that Ecolab Inc. (NYSE:ECL) provides the best environmental management, from among the companies in the Russell 3000 index, Sustainable Brands reported.
In the past two years, Ecolab Inc. (NYSE:ECL) has shown a progression of 38 points (72%) in its score, which in the recent study was 91 out of 100, placing them ahead of Intel Corporation (NASDAQ:INTC), which was the second in the list with 89 points. Intel Corporation (NASDAQ:INTC) was displaced from the first place after two years at the top of the list. Lexmark International Inc (NYSE:LXK) was placed third, with 84 points, up from 74 in 2011.
The study uses the application of an environmental rating methodology, the Governance and Environmental Management Strength (GEMS) Rating, to create the listing. The analysis is the brainchild and creation of Soyka & Company. The rating has been created to help evaluate companies’ ability to predict and cope with environmental issues that have an impact on operations. It assesses the presence or absence of 43 indicators. The data for this rating is provided by IW Financial, and is a series, of which, this is the third.
The major findings from the ratings include:
— The absence of 11 companies that were part of the 2011 top 25.
— The absence of companies such as Bank of America (Financials) and CBRE/CB Richard Ellis and Prologis (real estate) in the top 25 firms, especially given they are still in the top three in their own sectors for most of the past four years.
— Over the past four years, companies such as HCP and Forest City Enterprises (real estate sector), Las Vegas Sands (casinos and gaming industry), Hertz Global Holdings (services sector/industry), and Bank of New York Mellon and Wells Fargo (banking industry) have significantly increased their environmental disclosure. Most of them have jumped from zero or single-digit scores in the past four years to an increase of 40 points or more.
— On the other hand, some companies divulge less environmental information, and 104 of 814 companies showed overall GEMS Rating score declines in the time period.
Ecolab Inc. (NYSE:ECL) was one of the 15 organizations to receive the EPA Climate Leadership Awards this year. Additionally, Ecolab Inc. (NYSE:ECL) and Intel Corporation (NASDAQ:INTC) were also included in the 100 best Corporate Citizen’s List by CR Magazine.
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