List of the 100 biggest winners and losers

Michele Tantussi Reuter

Elon Musk is not a fan of environmental, social and governance analysis, and ESG analysis has not always been a big fan of Tesla in its relatively short history. But things are changing.

Not so much Musk’s perspective – and the way he’s been doing layoffs on Twitter won’t do him any favors in the key worker category that falls under social rankings – but You’re here moved up the annual Just 100 list for 2023 of non-profit organization Just Capital, founded by billionaire hedge fund manager Paul Tudor Jones, among others.

The company topping the Just 100 2023 list was the biggest surprise, with Bank of America ending the dominance of the tech sector on this annual list. But that wasn’t the only surprise in the ranking, which assessed the performance of 951 companies in the Russell 1000 universe on environmental, social and governance issues.

disney fell from No. 72 on the Just 100 2022 list to No. 198 this year, a net loss of 208 places. While former CEO Bob Chapek dragged the company into a battle with Florida over LGBTQ+ policies earlier this year and gave Florida Governor Ron DeSantis an opening to dig deeper into ESG issues, it didn’t. not been a factor in its ranking. Poor performance on local job creation, the second most important issue according to polls of the American public that Just Capital uses as the basis for weightings in its annual ranking, was the reason. Specifically, Disney ranked 940 for the number of jobs created in the United States, down about 38,152 jobs, or about 22%, from 2017 (176,294 estimated jobs) to 2021 (138,142 estimated jobs). ).

“The real thing that dragged them down wasn’t DeSantis or whatever,” said Martin Whittaker, founding CEO of Just Capital. While he said Disney does well in some areas of work, “It’s the jobs.” Just Capital isn’t the only influential voice in corporate research that has called out Disney on worker issues.

Here are some of the other biggest moves up and down, both within the Just 100 and across the universe of 951 companies rated by Just Capital.

Bank of America earns top spot on Just 100 2023 list

Tesla: Better, but far from great

Tesla ranked No. 536 overall and seventh among automotive companies. It was number 608 last year.

The 72-spot rise on the Just 100 list is noteworthy, Whittaker said. For the previous four years, Tesla was in the bottom 10% of Just’s annual ranking and has continued to increase its ranking over the past two years.

Tesla was not included in the JULCD/JUST ETF index representing the top 50% companies in the industry rankings, however, it came close this year finishing seventh out of 13 automobiles.

Where does it continue to show mixed performance: worker scores significantly lower than other companies and, importantly, other automakers. But scores high on local job creation, second in the automotive sector and among the top 200 companies overall.

Tesla also received above average scores on most environmental issues, but continues to receive below average scores on climate change because it is not transparent about its emissions targets or plans, or the way to reach them. This has been a bone of contention for many investors on both sides of the issue, with some saying the most influential EV company is the climate leader, while others say that without proper disclosure to analyze, it deserves its low scores.

Unsurprisingly for a CEO who has often wielded power with negative consequences, Tesla received lower scores on governance issues as well as protecting worker health and safety, supporting hand retention -work and the culture of diversity, equity and inclusion.

In May 2022, Just Capital presented six public recommendations to Tesla to improve its performance.

“Tesla has definitely made progress this year. They’re still doing well on the environment and job creation, but it’s very hard for them to really move on without more data and transparency around workers, and we don’t. “We haven’t seen it. It’s not that complex for them to get there,” Whittaker said. capitalizations.” He added, “I don’t know what one can gain by refusing to provide the market with more information on climate leadership.”

Uber: A very big drop

In 2022, Just Capital placed Uber, Lyftand door dash under review due to difficulties in assessing how these companies treat all of their staff based on publicly available data on gig economy workers versus, for example, professional staff occupying white-collar positions in the Uber company. The data is available this year, and it has resulted in a sharp drop for Uber.

Just Capital contacted these companies and asked public sources for information on the proportion of gig workers in their workforce and the benefits available to these workers. It then scaled down the scores of companies in the “gig economy” across the data points in its measures of workers where there was no evidence that gig workers are covered by benefits or workplace policies. the workplace rated in the Just 100.

Overall, Uber jumped from #41 to #505, well off the Just 100 ranking.

Uber’s living wage ranking, the No. 1 in the rankings, fell to No. 871, from No. 570. Its worker health and safety ranking fell from No. 33 to No. 643. His benefits and work-life balance ranking rose from No. 117 to No. 623.

“We try to give companies the benefit of the doubt and last year it was impossible to know how many were gig workers and what their experience was,” Whittaker said. “We’ve figured that out to our satisfaction this year…and it wouldn’t surprise you if the vast majority of site workers didn’t receive benefits.”

Whittaker said there was more work to be done in the coming years on gig worker issues and polling the American public on this issue as an area of ​​importance. “The gig economy isn’t going away,” he said, adding that there’s not yet a perfect answer to the question, “Do they have to be treated the same, or is- Are there other things companies can do?

“We will ask in 2023,” he said.

“Market forces will push them to offer more to on-demand workers,” he said, and in fact they already do. “We don’t want to pretend it’s easy or that we’ve figured it out, but it’s a first step in that direction and we didn’t want to make a pass again this year.”

Starbucks and Amazon and unionization

Amazon and Starbucks were both outside the Just 100 rankings in 2022. This year, both are back.

For a list focused on workers’ issues first and foremost, that might seem surprising given the headlines about organizing campaigns. But as Whittaker noted, Just Capital takes no position on unionization. Its worker metrics focus on data that can be disclosed and reviewed, such as compensation and benefits. Measuring a company’s approach to unionization is difficult because there is very little comparable data on the subject. Just Capital examines any controversy related to active opposition to unions through its controversy measurement approach.

“In the case of Amazon and Starbucks, we have seen efforts to oppose their workers’ choice to join a union that have been flagged as controversial. However, given the number of workers organizing currently and the magnitude of other issues, the controversial data has not had an outsized impact on overall performance,” the nonprofit said in this year’s Just 100 review.

This lifted Amazon to No. 51 overall after being just out of the Just 100 last year, at No. 105. Last year was the only year of the past five in which Amazon n didn’t make the top 100.

“Despite controversies over unionization, Amazon received high scores in the worker stakeholder group compared to its peers for disclosing a minimum wage rate, and for conducting and reporting the results of wage analyzes based on gender and race,” Just said. Amazon received its lowest scores as a worker stakeholder on worker health and safety, as well as benefits and work-life balance.

While it is currently cutting jobs, Amazon had the highest U.S. job total in the ranking, estimated at 1,074,708, which is up more than 300% since 2017, and is second. the most important measure of the ranking.

Paul Tudor Jones: Your company's stock market performance will be rewarded if you do what Americans want

Starbucks ranked No. 46 overall this year and No. 1 in the restaurant industry. That’s up from No. 140 last year, with investments in creating local jobs, disclosing minimum wage rates, releasing the results of the annual pay equity analysis and a strong commitment to DEI among the measures where it outperformed. However, it received a low score specifically on the living wage measure, ranking at No. 885 overall.

Like Amazon, Starbucks was penalized for three separate worker-related and union-busting controversies during this year’s rankings, but that didn’t have an outsized impact on its rankings.

“We are all interested in the issues and the relationship between management and workers and how a company is progressing,” Whittaker said. “Unionization is more of a symptom of financial anxiety and a feeling that workers want more participation, and that is going to escalate.”

Leave a Reply

Your email address will not be published. Required fields are marked *