The problem
Worldwide material consumption has expanded rapidly, as has material footprint per capita. In 1990 approximately 8 tons of natural resources were used to satisfy a person’s need, while in 2015 almost 12 tons of resources were extracted per person. Urgent action is needed to reduce waste and encourage mainstream sustainability practices across all sectors of the economy. Corporations can lead in several ways, including their internal waste reduction (both waste they produce directly through operations, such as industrial waste, and waste created by their physical footprint and employees), engagement with supply chain partners on waste, and public commitments to responsible use of natural resources (and transparent reporting on progress)
How companies are rated
Ethos is using 88,105 unique data points since 2017 to rate companies, stocks and funds on reduced waste, including from these metrics:
Financial performance
r =
Company ratings 1-yr return
Top 10 for reduced waste
Top 50 for reduced waste
S&P 500 Index
Bottom 50 for reduced waste
Bottom 10 for reduced waste
Reduced waste has a slight positive correlation (
) with financial returns, meaning companies that perform better in this impact area tend to perform slightly better financially
Data partners and sources
What this formula is about
responsible consumption
sustainable resource use
UN Sustainable Development Goal 12