Top of the Tortoises

 

There's a whole new area developing in assessing how good companies are performing on the triple bottom line. The latest new Index looking at how good companies actually are (in every sense of the word) is from Tortoise Media - The Tortoise Media Responsibility 100 Index

This index takes the FTSE 100 and rates these on indices relating to the 17 UN Sustainable Development Goals, across the two broad areas People and Planet. There's a full detailed transparent methodology link included on the website for those interested in the nitty gritty and yes, of course, there is a degree of judgement in terms of how the indices are derived and weighted. 

Always worth bearing in mind.

Looking at the results, Top of the Tortoises this year are:

1. Unilever

2. Severn Trent

3. Diageo

4. AstraZeneca

5. BT Group

There are several things I like about this index - first of all, there's the "talk" and "walk" division - what the companies are committing to, and what they are actually doing. And I believe both are vital. Companies that simply donate a bucketload of cash to a trendy cause on the spur of the moment aren't in it for the long-haul, usually. 

It's good to see the top five from a complete mix of sectors - retail & consumer, engineering, pharma and services are all represented. And yes, it is the FTSE Top 100 which is generally about established companies, but it's encouraging to see all the Top 5 were established in the last century (with roots going much further back, in some cases) - these are certainly not "new kids on the block" who have social and environmental responsibility baked-in from the beginnings.

What I'd really like to see accompanying this is a "Hare Index" of growth to see if the third part of the triple bottom line really does go hand-in-hand with the other two to the finishing line.