Schneider Electric Tops Europe’s Most Sustainable Companies

French Firm Leads the Charge in ESG Performance

Europe continues to dominate the global landscape of sustainable business, with companies consistently achieving top rankings in environmental, social, and governance (ESG) performance. A new index reveals which firms are leading the way, and one company stands out.

Schneider Electric Claims Top Spot

Schneider Electric SE has been named the most sustainable company in Europe, according to Corporate Knights’ inaugural Europe 50 ranking. The French multinational, which also earned the highest marks in the 2025 Global 100, has topped the Global 100 twice before, in 2021 and again this year. Schneider has been instrumental in electrification efforts across diverse sectors, from basic electrical components to advanced software and clean energy solutions for data centers and smart cities.

Currently, 74% of Schneider Electric’s €54 billion in annual revenue originates from sustainable sources, and nearly 80% of its investment portfolio is directed toward sustainable solutions. The company’s growth is notable; its shares jumped 58% in 2024, peaking at €152 billion in market capitalization in January.

“A few years ago, the sustainable economy was a niche thing,”

—Toby Heaps, Corporate Knights Publisher

Heaps notes a significant shift: “Now it’s the main game, and it’s going to determine who wins and loses, who rises and falls.” Europe is proving to be a key indicator of how this game is unfolding.

Diversity Across Industries

The Europe 50 ranking showcases remarkable diversity, encompassing 50 companies across 31 industries in 14 countries. Unlike some ESG indices that favor “pure play” clean energy firms, Corporate Knights’ methodology considers revenue from sustainable sources and sustainable investment, weighted equally. Critically, evaluations are relative—companies are compared within their respective sectors.

Power generation is the most represented industry, with six companies featured, including Vestas, the Danish wind-power generator, which topped the Global 100 in 2022. However, the list also includes automotive manufacturers like Mercedes-Benz, apparel companies like Puma, and steel producers like Outokumpu Oyj.

European Leadership and Regulation

What drives Europe’s success in sustainability? Heaps points to a combination of factors, starting with a robust regulatory environment. Unlike other regions, Europe has comprehensive rules regarding the disclosure of sustainability performance. Regulations dictate not only what can be labeled as sustainable but also the performance standards required.

Denmark, despite its small population of six million, boasts seven companies on the Europe 50 list—second only to the United Kingdom. This success is partly attributed to the country’s unique economic structure. As of 2021, 25% of Denmark’s largest 100 companies, and 60% of its stock market capitalization, were controlled by “industrial foundations” focused on societal advancement and long-term thinking. This contrasts with the traditional Western focus on maximizing shareholder returns. According to a recent report by the European Environment Agency, the EU is on track to reduce greenhouse gas emissions by 55% by 2030, demonstrating a commitment to climate action. (European Environment Agency, 2024)

Heaps observes that sustainable revenues of European companies are growing at twice the rate of all other revenues. A hypothetical index tracking the Europe 50 companies would have outperformed the S&P 500.

The shift toward sustainable business models is proving to be not only environmentally and socially responsible but also financially rewarding, with European companies leading the way.