Last year, Denominator performed a correlation analysis between the world’s 100 most sustainable companies ranked by Corporate Knights and the same companies ranked by Denominator’s Total DEI Score. The analysis found a very low correlation between the two rankings.
On January 18th, Corporate Knights published their 2023 ranking, and we repeated the analysis. Despite the new dataset, the result was consistent with the previous year: no significant correlation.
Corporate Knights’ Methodology Still Weighs Heavily on Environmental Metrics
Corporate Knights has gradually expanded its inclusion of social performance indicators, including gender and racial ratios on executive and board levels, and supplier scores. The 2022 update was a step forward, assigning 20% weight to social indicators. However, environmental indicators continue to dominate the overall score, making the ranking primarily “green.”
The exact 2023 weights are not publicly available, but given the similarity in outcomes, it is reasonable to assume that the social indicators still have limited influence on the final ranking.
Weaker Correlation Between Denominator and Corporate Knights’ Rankings
To explore the relationship between Denominator and Corporate Knights’ assessments, we conducted a correlation analysis. The correlation coefficient between the two rankings was 0.03 – a statistically insignificant result. For reference, in 2022, the correlation was 0.07.
This suggests that Corporate Knights’ list of the world’s most sustainable companies does not align with the same companies’ DEI performance, as measured by Denominator.
Further examination of six selected DEI indicators revealed inconsistencies. In four out of six, the correlation was negative. For example, a company ranked 100th on Denominator’s Gender Sub Score ranked 12th on Corporate Knights’ sustainability list.
A Holistic Approach to DEI is Essential
Denominator has built the world’s largest standardized DEI database, covering more than 1.7 million public and private companies across 190+ countries and 85+ industries. With 650+ DEI-specific variables and over 15 dimensions—including Age, Sexuality, Disability, Education, Nationality, and Upbringing—Denominator goes beyond the narrow focus on gender and race.
This approach enables measurement across a broader spectrum of DEI performance indicators. When companies are evaluated using only one or two sub-scores, the results can be misleading. For instance, a company might score high on Gender but low on Education or Race/Ethnicity. A Total DEI Score that includes all dimensions gives a more accurate and balanced assessment.
The Need for Balanced Sustainability Metrics
This year’s analysis reconfirms a fundamental point: strong environmental performance does not automatically imply strong DEI performance. This disconnect raises an important question: should social and environmental dimensions be combined in a single score without equal weighting?
If the ESG acronym is to retain credibility, sustainability rankings must better integrate and balance environmental, social, and governance factors. Sustainability is not only about climate and emissions—it is also about people.
By incorporating more dimensions of DEI into sustainability rankings, the sector can move closer to a holistic and unbiased view. At Denominator, we encourage continued progress in this direction and welcome collaboration with initiatives like Corporate Knights to deepen the understanding of sustainability performance.
For more information on Denominator’s DEI methodology or to discuss partnership opportunities, reach out to us at info@denominator.one.
