🌍 ESG Deep Dive: TIME’s Top 10 Most Sustainable Companies of 2025
TIME and Statista’s ranking of the World’s Most Sustainable Companies in 2025 is the comprehensive measure of the world’s most sustainable companies, highlighting global firms that are truly leading in Environmental, Social, and Governance (ESG) performance. The ranking includes companies from various industries and sectors, showing how organizations across different parts of the global economy are being evaluated for their sustainability efforts. This blog breaks down the top 10 performers based on their publicly disclosed reports, ratings and ESG target-setting. For the first time, the 2025 list features new milestone achievements, including companies and sectors that are making the ranking for the first time.
Introduction to ESG
ESG - Environmental, Social, and Governance - has become the foundation of modern business strategy, how companies operate and how they are perceived by investors, customers and wider society. The world’s most sustainable companies are those that embed ESG into every part of their operations, from reducing greenhouse gas emissions to ensuring robust governance and social responsibility. By adopting ESG companies can minimize risks and enhance their reputation and unlock sustainable investment opportunities and drive long-term financial performance. For instance, the Science Based Targets initiative (SBTi) is increasingly a key benchmark, enabling companies to measure their emissions and set science-based net zero targets. As sustainable investment grows, assessing ESG is now essential for companies that want to lead in sustainability, attract investors and future-proof their business strategy.
💡 What makes a company “sustainable”?
A sustainable company embeds ESG factors such as environmental stewardship, social responsibility and sound governance into its business model and long-term strategy. Sustainable companies are committed to long-term ESG values and have specific sustainability goals such as reducing their environmental impact and increasing investments in sustainable practices. This includes:
Reducing greenhouse gas emissions to minimize impact on the environment
Ensuring equitable, inclusive and health-focused workplaces that support employees
Maintaining ethical supply chains
Practicing transparent and accountable governance
Implementing measures to measure and report on ESG practices
Using resources efficiently as part of environmental stewardship
But sustainability isn’t just about good intentions - it’s about verifiable performance, often backed by third-party frameworks and rating agencies.
Environmental Impact
A company’s environmental impact is at the core of its sustainability journey. The world’s most sustainable companies are setting the standard by reducing their greenhouse gas emissions, managing energy use efficiently and minimizing waste across their operations and supply chain. Energy management is top priority, with leading companies investing in renewable energy and integrating sustainable practices at every level. The use of recycled materials is also gaining traction, as seen with Moncler’s commitment to 100% renewable energy in its offices, stores, factories and logistics hubs. By prioritizing environmental sustainability companies reduce their ecological footprint and enhance their reputation, attract environmentally conscious customers and contribute to a more sustainable future. These are key to achieving net zero and staying ahead in the global sustainability movement.
Net Zero
Committing to net zero is the hallmark of today’s most sustainable companies. The Science Based Targets initiative (SBTi) provides the framework for setting and achieving ambitious greenhouse gas emissions reduction targets. Companies like Schneider Electric are leading the way, with Schneider targeting carbon neutrality by 2025. By setting clear net zero targets and implementing effective sustainability strategies companies can reduce their environmental impact, lower operational costs and improve energy efficiency. These commitments strengthen a company’s reputation and appeal to investors and play a crucial role in shaping a sustainable future. As more companies recognize the value of net zero following the leaders is key to making progress in sustainability.
📊 Why Do Companies Disclose to ESG Frameworks?
With growing expectations from investors, regulators, and the public, ESG disclosures help companies collect and analyze data to provide transparent, quantifiable insights into their sustainability performance. Companies also rely on robust processes to ensure compliance and transparency in ESG reporting which supports:
Accountability
Compliance (e.g. the EU’s CSRD regulation)
Responsible investment
Benchmarking against peers
Popular ESG frameworks in this cohort include:
ESRS (CSRD): EU-mandated, standardized, detailed sustainability disclosures that companies adopt to align with regulatory requirements
GRI: Widely used global standard for sustainability reporting that organizations adopt to standardize disclosures
SASB: Sector-specific standards focused on financial materiality, adopted for industry relevance
TCFD / TNFD: Focus on climate and nature-related financial risks, adopted to guide risk management
UNGC, WEF, SFDR: Voluntary commitments and regulatory-aligned standards that companies may adopt to demonstrate leadership in ESG
Evaluation Criteria
TIME’s methodology for the world’s most sustainable companies is tough and comprehensive, so only the true leaders make the cut. Companies are assessed on their public sustainability commitments, measurable performance indicators and transparent reporting. Key metrics include Scope 1 and Scope 2 greenhouse gas emissions, energy consumption and proportion of renewable energy used in operations. The evaluation also looks at emissions reductions and effectiveness of energy management strategies. Beyond environmental metrics ESG factors such as governance, social responsibility and overall sustainability practices are part of the assessment. This methodology provides a clear benchmark for companies to measure their performance, identify areas for improvement and aim for a place on the full list of the world’s most sustainable companies. By adhering to these standards companies can demonstrate leadership, accountability and a genuine commitment to a sustainable future.
In addition to this our deep-dive includes ESG ratings to see if investor views on the companies TIME has assessed as Leaders align, as well as similarities and differences in their disclosures.
🏅 How ESG Ratings Work—and Why They Matter
ESG ratings assess a company’s sustainability performance using independent methodologies and multiple measures such as environmental impact, governance practices and social responsibility. These ratings often look at the proportion of a company’s revenue that comes from sustainable sources. For many top-rated companies sustainable revenue now represents a significant portion of their total income, showing the growing financial impact of sustainability efforts. These ratings help:
Sustainalytics: Risk-based score (lower is better)
ISS: Provides letter grades (Prime = acceptable ESG performance)
S&P Global: Scores out of 100
CDP: Grades A to D- on climate transparency and action
For more information on ESG ratings and ESG leadership, check out our article assessing CDP A-list performance across various ESG ratings (73% of A-listers are Leaders in at least 1 other rating).
🧾 Key Findings from the Top 10
1. Summary of Key Findings
Average number of ESG targets: 10.7
Average number of KPIs (where reported): ~21
Most companies (7 out of 10) have clearly defined ESG targets for 2025, often with longer-term ambitions for 2030–2050. This demonstrates strong ambition, coupled with transparent disclosure on the extent to which they've achieved their targets.
All companies had targets related to Climate / Environmental topics, while only 5/10 companies had targets related to Social and Governance topics
Companies with ESRS (CSRD) disclosures tend not to include other voluntary frameworks, except for Schnieder Electric who has continued disclosing on TCFD and SASB.
Audits are conducted regularly to ensure transparency and accountability in ESG disclosures among the top 10 companies.
ESG ratings suggest generally low ESG risk and strong disclosure maturity across the board.
All companies received a “Prime” rating from ISS, indicating above-threshold ESG performance in their sectors - even though the ISS ratings themselves ranged from B to C+.
2. Commonalities in Disclosures, Ratings & Targets
Frameworks & Annual Publications:
Most common to publish a standalone Sustainability Report (5)
Nasdaq the only company not to publish a 2024 report (yet)
GRI (6 companies) and SASB (6) are the most common frameworks
ESRS/CSRD adopted by all EU-based companies (Schneider, Telefónica, Moncler, Sanofi). Note: while Siemens is based in Germany, the German government did not transpose the CSRD into national law, as such German companies were not mandated to report on CSRD this year.
TCFD used by 5 companies, UNGC by 3, TNFD by 2.
Schneider Electric (ranked #1 by TIME) was the only ESRS responder to continue disclosing on voluntary annual reporting frameworks (TCFD and SASB)
Shared Ratings Highlights:
Sustainalytics: 9 of 10 companies are ranked Low Risk or Negligible.
ISS “Prime” Status: All 10 companies achieved it, even Nasdaq with a C+.
Scope and ambition vary: Some companies (e.g. NRI, NEC) use a large number of KPIs (40 and 35 respectively), while others (e.g. Moncler) use a minimalist but structured KPI approach.
3. Standouts in Ratings, Targets, and Disclosure Types
Best S&P ESG Scores: Moncler and NRI both scored 90/100.
Lowest S&P Score: Sanofi at 59/100—but with strong CDP and ISS ratings.
Lowest Sustainalytics Risk Score: Schneider Electric (9.6) and Moncler (10.0) both rank as Negligible Risk.
Only Companies Without CDP Scores: NRI and Nasdaq (N/A).
Only Company With C+ ISS Rating: Nasdaq (still Prime, i.e. is a Leader, but lowest grade).
Only Company with a “Medium Risk” Sustaianlytics score: Siemens (25.8) - although they are 8th out of 128 companies in Industrial Conglomerates.
Most KPIs: NRI with 40 KPIs, followed by NEC (35).
Fewest ESG Targets: Moncler, with just 2, yet detailed across 12 KPIs.
This reflects how some companies integrate ESG into their financial reports and assessments (integrated approach), while others treat it as a standalone priority.
🏢 Company-by-Company Overview
Climate change is a key driver for these companies’ sustainability strategies. They are investing in green technologies, setting net-zero targets and aligning with global climate goals to build a low-carbon and sustainable future. Each company is taking measurable action to reduce their impact on the planet, such as cutting carbon emissions, increasing renewable energy use and tracking progress through transparent disclosures and ambitious targets.
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