Carbon Clean 200™:

Investing in a Clean Energy Future

2018 Q3 Performance Update

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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.

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%.

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

 

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