Sustainability rankings have proliferated in recent years, yet most remain heavily focused on environmental metrics. Corporate Knights, which has published an annual ranking of the world’s 100 most sustainable corporations since 2005, is among the few to publicly share their methodology, indicators, and weightings. While their index has evolved to include some social performance indicators—such as gender and racial diversity at executive and board levels, and supplier and employee benefits—these still only account for 20% of the total score. The remaining 80% is weighted towards environmental performance, making it largely a "green" sustainability ranking.
To provide a different perspective, Denominator assessed these same 100 companies using its Total Diversity, Equity, & Inclusion (DEI) Score—where 100% of the weight is allocated to social dimensions, going beyond gender and race to include other DEI factors. The findings show a near-zero correlation (0.07) between the two rankings, revealing that companies scoring high on environmental factors often do not score high on DEI, and vice versa. This highlights the need for separate assessments of environmental and social sustainability—or for more balanced and transparent ESG scoring systems.
What Is Sustainability?
Sustainability has become central to the agenda of policymakers, businesses, investors, and civil society. Yet, consensus remains elusive around what constitutes sustainability and what metrics should define it. ESG frameworks—Environmental, Social, and Governance—are widely used but often skew heavily toward the Environmental component. This imbalance fails to reflect the full scope of sustainability, which is about both people and planet.
Corporate Knights’ ranking, based on an assessment of 7,000 companies with revenues over USD 1 billion, weights its 23 indicators as follows:
- 50%: Clean Revenue and Clean Investment
- 30%: Resource productivity (energy, carbon, waste, water, financials)
- 20%: Social indicators (e.g., gender and racial diversity, sustainability pay link, supplier score, paid sick leave)
While these social indicators are a good starting point, they fall short of capturing broader DEI performance. A more holistic approach is needed.
What Is Diversity, Equity, & Inclusion (DEI)?
DEI is a fundamental component of the "S" in ESG. Research consistently shows that organizations with high DEI performance benefit from greater innovation, productivity, employee engagement, and morale.
- Diversity includes a wide range of characteristics—gender, generation, culture, LGBTQ+, disability, religion, and more.
- Equity ensures fair access and opportunities, acknowledging that different individuals need different support to succeed.
- Inclusion focuses on removing barriers and fostering environments where all individuals can thrive and participate meaningfully.
Denominator’s Holistic Approach to DEI
Denominator operates the largest standardized DEI dataset globally, covering 1.5 million+ companies across 190+ countries and 85+ industries. Our DEI framework goes beyond traditional metrics of gender and race/ethnicity to include 15+ dimensions such as age, disability, education, and family status.
This allows Denominator to offer the most comprehensive DEI performance scores in the market and deliver unique insights into how companies are performing socially—not just environmentally.
Correlation Between “Clean” and DEI Rankings?
Denominator conducted a correlation analysis between its Total DEI Score and the Corporate Knights sustainability ranking. The result: a correlation coefficient of just 0.07, indicating almost no relationship.
For example:
- The top-ranked company on Corporate Knights’ list ranks 20th on Denominator’s DEI Score.
- The top-ranked company by Denominator ranks 55th on the Corporate Knights list.
This demonstrates that companies leading on environmental indicators are not necessarily leaders in DEI, underscoring the need for clearer distinctions between environmental and social sustainability in ESG frameworks.
Why a Holistic Approach Matters
Looking at the top 25 companies on Denominator’s DEI ranking, very few also rank highly when measured solely on gender or race/ethnicity. This confirms that measuring a narrow set of diversity dimensions can yield misleading results.
A holistic DEI assessment that includes multiple dimensions—such as age, disability, and education—provides a more accurate picture of how inclusive a company truly is.
Death of ESG? Long Live the E, S, and G
This comparative analysis reinforces a key point: there is little overlap between the greenest and most socially inclusive companies. This raises the question of whether environmental and social aspects should be combined into a single rating or reported separately.
Integrated sustainability rankings can still be useful, but they should:
- Weight the E, S, and G equally, or
- Be fully transparent about what is being measured and how.
Denominator supports the transparency of Corporate Knights’ methodology and is open to collaboration to further enhance the understanding of sustainability. A more holistic approach is needed—both to sustainability and to DEI.
