Nokia is the world's most sustainable technology company according to the 10th edition of the Dow Jones Sustainability Indexes (DJSI) published today.
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The sustainability index, cousin to the Dow Jones Industrial Average index ("the Dow") by which the US stock market performance is measured, ranks 2,500 companies in over 50 countries on their impact on the environment.
Companies are rated on their economic, environmental and social performance to assess corporate governance, risk management, branding, climate change mitigation, supply-chain standards and labour practices. It includes general and industry-specific sustainability criteria for each of 58 sectors.
A DJSI spokesman said investors have poured $8.5bn into financial instruments related to firms on the DJSI list. This compares with $29bn for the Dow.
The sustainability index had outperformed the MSCI, a key world index for fund managers, by 4.67% over the past 10 years. "This is a clear signal that sustainable companies create better returns," he said.
As part of its climate change strategy, Nokia is trying to cut its energy consumption and increase efficiency across its business. This includes reducing travel, investing in R&D in new technologies using renewable energy resources. It has plans to increase its proportion of green electricity, which already accounts for 25% of all the energy the company consumes.