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Ranked: The Most Innovative Companies in 2021

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Top 50 Most Innovative Companies 2021

Ranked: the Top 50 Most Innovative Companies in 2021

This year has been rife with pandemic-induced changes that have shifted corporate priorities—and yet, innovation has remained a top concern among corporations worldwide.

Using data from the annual ranking done by Boston Consulting Group (BCG) using a poll of 1,600 global innovation professionals, this graphic ranks the top 50 most innovative companies in 2021.

We’ll dig into a few of the leading companies, along with their innovative practices, below.

Most Innovative Companies: A Breakdown of the Leaderboard

To create the top 50 innovative company ranking, BCG uses four variables:

  • Global “Mindshare”: The number of votes from all innovation executives.
  • Industry Peer Review: The number of votes from executives in a company’s industry.
  • Industry Disruption: A diversity index to measure votes across industries.
  • Value Creation: Total share return.

For the second year in a row, Apple claims the top spot on this list. Here’s a look at the full ranking for 2021:

  Company Industry HQ Change from 2020
1 Apple Technology 🇺🇸 U.S.
2 Alphabet Technology 🇺🇸 U.S.
3 Amazon Consumer Goods 🇺🇸 U.S.
4 Microsoft Technology 🇺🇸 U.S.
5 Tesla Transport & Energy 🇺🇸 U.S. +6
6 Samsung Technology 🇰🇷 South Korea -1
7 IBM Technology 🇺🇸 U.S. +1
8 Huawei Technology 🇨🇳 China -2
9 Sony Consumer Goods 🇯🇵 Japan
10 Pfizer Healthcare 🇺🇸 U.S. Return
11 Siemens Technology 🇩🇪 Germany +10
12 LG Electronics Consumer Goods 🇰🇷 South Korea +6
13 Facebook Technology 🇺🇸 U.S. -3
14 Alibaba Consumer Goods 🇨🇳 China -7
15 Oracle Technology 🇺🇸 U.S. +10
16 Dell Technology 🇺🇸 U.S. +4
17 Cisco Systems Technology 🇺🇸 U.S. -5
18 Target Consumer Goods 🇺🇸 U.S. +4
19 HP Inc. Technology 🇺🇸 U.S. -4
20 Johnson & Johnson Healthcare 🇺🇸 U.S. +6
21 Toyota Transport & Energy 🇯🇵 Japan +20
22 Salesforce Technology 🇺🇸 U.S. +13
23 Walmart Consumer Goods 🇺🇸 U.S. -10
24 Nike Consumer Goods 🇺🇸 U.S. -8
25 Lenovo Technology 🇭🇰 Hong Kong SAR Return
26 Tencent Consumer Goods 🇨🇳 China -12
27 Procter & Gamble Consumer Goods 🇺🇸 U.S. +12
28 Coca-Cola Consumer Goods 🇺🇸 U.S. +20
29 Abbott Labs Healthcare 🇺🇸 U.S. New
30 Bosch Transport & Energy 🇩🇪 Germany +3
31 Xiaomi Technology 🇨🇳 China -7
32 Ikea Consumer Goods 🇳🇱 Netherlands Return
33 Fast Retailing Consumer Goods 🇯🇵 Japan Return
34 Adidas Consumer Goods 🇩🇪 Germany Return
35 Merck & Co. Healthcare 🇺🇸 U.S. Return
36 Novartis Healthcare 🇨🇭 Switzerland +11
37 Ebay Consumer Goods 🇺🇸 U.S. Return
38 PepsiCo Consumer Goods 🇺🇸 U.S. Return
39 Hyundai Transport & Energy 🇰🇷 South Korea Return
40 SAP Technology 🇩🇪 Germany -13
41 Inditex Consumer Goods 🇪🇸 Spain Return
42 Moderna Healthcare 🇺🇸 U.S. New
43 Philips Healthcare 🇳🇱 Netherlands -20
44 Disney Media & Telecomms 🇺🇸 U.S. Return
45 Mitsubishi Transport & Energy 🇯🇵 Japan New
46 Comcast Media & Telecomms 🇺🇸 U.S. New
47 GE Transport & Energy 🇺🇸 U.S. Return
48 Roche Healthcare 🇨🇭 Switzerland Return
49 AstraZeneca Healthcare 🇬🇧 UK New
50 Bayer Healthcare 🇩🇪 Germany -12

One company worth touching on is Pfizer, a returnee from previous years that ranked 10th in this year’s ranking. It’s no surprise that Pfizer made the list, considering its instrumental role in the fight against COVID-19. In partnership with BioNTech, Pfizer produced a COVID-19 vaccine in less than a year. This is impressive considering that, historically, vaccine development could take up to a decade to complete.

Pfizer is just one of four COVID-19 vaccine producers to appear on the list this year—Moderna, Johnson & Johnson, and AstraZeneca also made the cut.

Meanwhile, in a completely different industry, Toyota snagged the 21st spot on this year’s list, up 20 places compared to the rankings in the previous year. This massive jump can be signified by the company’s recent $400 million investment into a company set to build flying electric cars.

While we often think of R&D and innovation as being synonymous, the former is just one innovation technique that’s helped companies earn a spot on the list. Other companies have innovated in different ways, like streamlining processes to increase efficiency.

For instance, in 2021, Coca-Cola performed an analysis of their beverage portfolio and ended up cutting their brand list in half, from 400 to 200 global brands. This ability to pare down and pivot could be a reason behind its 20 rank increase from 2020.

Innovation Creates Value

As this year’s ranking indicates, innovation comes in many forms. But, while there’s no one-size-fits-all approach, there is one fairly consistent innovation trend—the link between innovation and value.

In fact, according to historical data from BCG, the correlation between value and innovation has grown even stronger over the last two decades.

Most Innovative Companies 2021

For example, in 2020, a portfolio that was theoretically invested in BCG’s most innovative companies would have performed 17% better than the MSCI World Index—which wasn’t the case back in 2005.

And yet, despite innovation’s value, many companies can’t reap the benefits that innovation offers because they aren’t ready to scale their innovative practices.

The Innovation Readiness Gap

BCG uses several metrics to gauge a company’s “innovation readiness,” such as the strength of its talent and culture, its organization ecosystems, and its ability to track performance.

According to BCG’s analysis, only 20% of companies surveyed were ready to scale on innovation.

Scaling Innovation

What’s holding companies back from reaching their innovation potential? The most significant gap seems to be in what BCG calls innovation practices—things like project management or the ability to execute an idea that’s both efficient and consistent with an overarching strategy.

To overcome this obstacle, BCG says companies need to foster a “one-team mentality” to increase interdepartmental collaboration and align team incentives, so everyone is working towards the same goal.

The post Ranked: The Most Innovative Companies in 2021 appeared first on Visual Capitalist.

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Top 50 Companies Proportion of World GDP

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The Briefing

  • The combined market cap of the world’s top 50 companies was proportional to 27.6% of global GDP in 2020, up from just 4.7% of global GDP in 1990
  • Tech’s role continues to grow, now accounting for 21 of the top 50 companies

Top 50 Companies Proportion of World GDP

The world’s top 50 companies have become increasingly more valuable, and more powerful, over time.

As global GDP has grown over the last four decades, from $23.6 trillion in 1990 to $84.5 trillion in 2020, the proportional share of the world’s top companies by market capitalization has grown over five-fold.

Year Global GDP Top 50 Companies Market Cap as a % of GDP
1990 $23.6T 4.7%
2000 $34.0T 22.1%
2010 $66.2T 12.7%
2020 $84.5T 27.6%

Though the world’s top 50 companies change year-to-year, there’s also a lot of overlap.

Which Companies Dominated Each Decade?

2020’s largest company by market cap, Apple at $2.26 trillion, was the third largest company in 2010. Likewise, 2010’s largest company was Exxon Mobil, which was the second largest company in both 1990 and 2000 (but has since fallen off).

The top 50 companies in the world also highlight the increasing role of tech in the modern market. 1990’s largest company IBM was just one of three tech companies that made the ranking that year. Even in 2000, when the world’s largest company was GE, tech companies like Cisco and Microsoft only made up three of the top 10 companies by market cap.

Fast forward to 2020, and tech accounted for 42% of the top 50 companies in the world. It also plays a more prominent role on the high end of the spectrum, as six of 2020’s seven largest companies were tech-based, with only oil giant Saudi Aramco the odd one out.

Though digitization is a primary driver of current economic growth, will these trends remain steady in 10 or more years from now? Or will companies from other booming industries such as green energy take over the leaderboard?

>>Like this? You might find this article interesting, 23 Years of Shifting Tech Market Caps

Where does this data come from?

Source: Bloomberg, IMF.

The post Top 50 Companies Proportion of World GDP appeared first on Visual Capitalist.

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The Top 100 Companies of the World: The U.S. vs Everyone Else

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Top 100 Companies of the World vs US

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The Top 100 Companies of the World: U.S. vs Everyone

When it comes to breaking down the top 100 companies of the world, the United States still commands the largest slice of the pie.

Throughout the 20th century and before globalization reached its current peaks, American companies made the country an economic powerhouse and the source of a majority of global market value.

But even as countries like China have made headway with multi-billion dollar companies of their own, and the market’s most important sectors have shifted, the U.S. has managed to stay on top.

How do the top 100 companies of the world stack up? This visualization pulls from PwC’s annual ranking of the world’s largest companies, using market capitalization data from May 2021.

Where are the World’s Largest Companies Located?

The world’s top 100 companies account for a massive $31.7 trillion in market cap, but that wealth is not distributed evenly.

Between companies, there’s a wide range of market caps. For example, the difference between the world’s largest company (Apple) and the 100th largest (Anheuser-Busch) is $1.9 trillion.

And between countries, that divide becomes even more stark. Of the 16 countries with companies making the top 100 ranking, the U.S. accounts for 65% of the total market cap value.

Location # of Companies Market Capitalization (May 2021)
🇺🇸 United States 59 $20.55T
🇨🇳 China 14 $4.19T
🇸🇦 Saudi Arabia 1 $1.92T
🇨🇭 Switzerland 3 $0.82T
🇳🇱 Netherlands 3 $0.58T
🇯🇵 Japan 3 $0.56T
🇫🇷 France 2 $0.55T
🇩🇪 Germany 3 $0.46T
🇰🇷 South Korea 1 $0.43T
🇬🇧 United Kingdom 3 $0.43T
🇮🇳 India 2 $0.34T
🇮🇪 Ireland 2 $0.34T
🇦🇺 Australia 1 $0.16T
🇩🇰 Denmark 1 $0.16T
🇨🇦 Canada 1 $0.13T
🇧🇪 Belgium 1 $0.13T

Compared to the U.S., other once-prominent markets like Japan, France, and the UK have seen their share of the world’s top 100 companies falter over the years. In fact, all of Europe accounts for just $3.46 trillion or 11% of the total market cap value of the list.

A major reason for the U.S. dominance in market values is a shift in important industries and contributors. Of the world’s top 100 companies, 52% were based in either technology or consumer discretionary, and the current largest players like Apple, Alphabet, Tesla, and Walmart are all American-based.

The Top 100 Companies of the World: Competition From China

The biggest and most impressive competitor to the U.S. is China.

With 14 companies of its own in the world’s top 100, China accounted for $4.19 trillion or 13% of the top 100’s total market cap value. That includes two of the top 10 firms by market cap, Tencent and Alibaba.

  Company Country Sector Market Cap (May 2021)
#1 Apple United States Technology $2,051B
#2 Saudi Aramco Saudi Arabia Energy $1,920B
#3 Microsoft United States Technology $1,778B
#4 Amazon United States Consumer Discretionary $1,558B
#5 Alphabet United States Technology $1,393B
#6 Facebook United States Technology $839B
#7 Tencent China Technology $753B
#8 Tesla United States Consumer Discretionary $641B
#9 Alibaba China Consumer Discretionary $615B
#10 Berkshire Hathway United States Financials $588B
#11 TSMC China Technology $534B
#12 Visa United States Industrials $468B
#13 JPMorgan Chase United States Financials $465B
#14 Johnson & Johnson United States Health Care $433B
#15 Samsung Electronics South Korea Technology $431B
#16 Kweichow Moutai China Consumer Staples $385B
#17 Walmart United States Consumer Discretionary $383B
#18 Mastercard United States Industrials $354B
#19 UnitedHealth Group United States Health Care $352B
#20 LVMH Moët Hennessy France Consumer Discretionary $337B
#21 Walt Disney Co United States Consumer Discretionary $335B
#22 Bank of America United States Financials $334B
#23 Procter & Gamble United States Consumer Staples $333B
#24 Nvidia United States Technology $331B
#25 Home Depot United States Consumer Discretionary $329B
#26 Nestle SA Switzerland Consumer Staples $322B
#27 ICBC China Financials $290B
#28 Paypal Holdings United States Industrials $284B
#29 Roche Holdings Switzerland Health Care $283B
#30 Intel United States Technology $261B
#31 ASML Holding NV Netherlands Technology $255B
#32 Toyota Motor Japan Consumer Discretionary $254B
#33 Comcast United States Telecommunication $248B
#34 Verizon Communications United States Telecommunication $241B
#35 Exxon Mobil United States Energy $236B
#36 Netflix United States Consumer Discretionary $231B
#37 Adobe United States Technology $228B
#38 Coca-Cola Co United States Consumer Staples $227B
#39 Meituan China Technology $226B
#40 Ping An China Financials $219B
#41 Cisco Systems United States Telecommunication $218B
#42 AT&T United States Financials $216B
#43 L’Oréal France Consumer Discretionary $215B
#44 China Construction Bank China Financials $213B
#45 Abbott Labs United States Health Care $212B
#46 Novartis AG Switzerland Health Care $212B
#47 Nike United States Consumer Discretionary $209B
#48 Oracle United States Technology $202B
#49 Pfizer United States Health Care $202B
#50 Chevron United States Oil & Gas $202B
#51 China Merchants Bank China Financials $196B
#52 PepsiCo United States Consumer Staples $195B
#53 United States Technology $195B
#54 Merck & Co United States Health Care $195B
#55 AbbVie United States Health Care $191B
#56 Broadcom United States Technology $189B
#57 Prosus NV Netherlands Technology $181B
#58 Reliance Industries India Energy $180B
#59 Thermo Fisher Scientific United States Health Care $180B
#60 Eli Lilly & Co United States Health Care $179B
#61 Agricultural Bank of China China Financials $178B
#62 Softbank Group Japan Telecommunication $176B
#63 Accenture Ireland Industrials $176B
#64 Texas Instruments United States Technology $174B
#65 McDonalds United States Consumer Discretionary $167B
#66 Volkswagen AG Germany Consumer Discretionary $165B
#67 BHP Group Australia Basic Materials $163B
#68 Wells Fargo & Co United States Financials $162B
#69 Tata Consultancy Services India Technology $161B
#70 Danaher United States Health Care $160B
#71 Novo Nordisk Denmark Health Care $160B
#72 Medtronic Ireland Health Care $159B
#73 Wuliangye Yibin China Consumer Staples $159B
#74 Costco Wholesale United States Consumer Discretionary $156B
#75 T-Mobile US United States Telecommunication $156B
#76 Citigroup United States Financials $152B
#77 Honeywell United States Industrials $151B
#78 Qualcomm United States Technology $151B
#79 SAP SE Germany Technology $151B
#80 Boeing United States Industrials $149B
#81 Royal Dutch Shell Netherlands Oil & Gas $148B
#82 NextEra Energy United States Utilities $148B
#83 United Parcel Service United States Industrials $148B
#84 Union PAC United States Industrials $148B
#85 Unilever United Kingdom Consumer Staples $147B
#86 AIA China Financials $147B
#87 Linde United Kingdom Basic Materials $146B
#88 Amgen United States Health Care $144B
#89 Bristol Myers Squibb United States Health Care $141B
#90 Siemens AG Germany Industrials $140B
#91 Bank of China China Financials $139B
#92 Philip Morris United States Consumer Staples $138B
#93 Lowe’s Companies United States Consumer Discretionary $136B
#94 Charter Communications United States Telecommunication $135B
#95 China Mobile China Telecommunication $134B
#96 Sony Group Japan Consumer Discretionary $132B
#97 Astrazeneca United Kingdom Health Care $131B
#98 Royal Bank of Canada Canada Financials $131B
#99 Starbucks United States Consumer Discretionary $129B
#100 Anheuser-Busch Belgium Consumer Staples $128B

Impressively, China’s rise in market value isn’t limited to well-known tech and consumer companies. The country’s second biggest contributing industry to the top 100 firms was finance, once also the most valuable sector in the U.S. (currently 4th behind tech, consumer discretionary, and health care).

Other notable countries on the list include Saudi Arabia and its state-owned oil and gas giant Saudi Aramco, which is the third largest company in the world. Despite only having one company in the top 100, Saudi Arabia had the third-largest share of the top 100’s total market cap value.

As Europe continues to lose ground year-over-year and the rest of Asia struggles to keep up, the top 100 companies might become increasingly concentrated in just the U.S. and China. The question is, will the imbalance of global market value start to even out, or become even bigger?

The post The Top 100 Companies of the World: The U.S. vs Everyone Else appeared first on Visual Capitalist.

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Mapped: The Top Trading Partner of Every U.S. State

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Trading Partner of Every U.S. State

The Top Trading Partner of Every U.S. State

The U.S. is highly dependent—perhaps unsurprisingly—on Canada and Mexico for trade. The country’s top trading partner is Mexico, making up 14.8% of total trade.

However, the country’s neighbors to the north and south are not the only trade partners that U.S. states rely heavily upon. This map from uses flags to show which country each U.S. state is importing the most from. Below, there is an additional graphic showing where each state is exporting the highest amount of goods and services to.

Who are the States Importing From?

The U.S. has a few natural and obvious trading partners, whether due to geographical closeness or strong economic ties.

The obvious candidates for top trading partners have already been mentioned, Canada and Mexico—and these two do show up at the state level as well. For example, Michigan gets 40.9% of its imports from Mexico, and Montana receives a whopping 87% of its imports from Canada.

Some other interesting trade partnerships stand out, like the Carolinas and Germany. Trade ties between Hawaii and Japan also make sense for historic reasons.

State Top Country Total State Import (Millions USD) Share of Total State Imports
Alabama  🇲🇽 Mexico $4,161 16.3%
Alaska 🇰🇷 South Korea $836 35.0%
Arizona 🇲🇽 Mexico $8,978 35.0%
Arkansas 🇨🇳 China $3,160 36.6%
California 🇨🇳 China $130,291 32.9%
Colorado 🇨🇦 Canada $2,928 24.3%
Connecticut 🇨🇦 Canada $4,031 22.4%
Delaware 🇨🇭 Switzerland $1,927 21.1%
District of Columbia 🇨🇦 Canada $74 13.7%
Florida 🇨🇳 China $11,212 14.7%
Georgia 🇨🇳 China $20,194 20.4%
Hawaii 🇯🇵 Japan $291 15.1%
Idaho 🇨🇦 Canada $1,195 21.7%
Illinois 🇨🇳 China $48,324 31.0%
Indiana 🇮🇪 Ireland $11,558 18.1%
Iowa 🇨🇦 Canada $2,387 26.6%
Kansas 🇨🇳 China $2,064 19.7%
Kentucky 🇲🇽 Mexico $6,882 12.5%
Louisiana 🇷🇺 Russia $2,611 12.6%
Maine 🇨🇦 Canada $3,167 66.6%
Maryland 🇩🇪 Germany $3,993 13.0%
Massachusetts 🇨🇦 Canada $7,779 22.2%
Michigan 🇲🇽 Mexico $47,473 40.9%
Minnesota 🇨🇳 China $7,577 26.9%
Mississippi 🇨🇳 China $3,938 24.9%
Missouri 🇨🇦 Canada $4,500 24.0%
Montana 🇨🇦 Canada $3,442 87.0%
Nebraska 🇨🇦 Canada $876 23.5%
Nevada 🇨🇳 China $4,108 31.8%
New Hampshire 🇨🇦 Canada $1,394 20.1%
New Jersey 🇨🇳 China $14,302 12.4%
New Mexico 🇨🇳 China $1,493 32.6%
New York 🇨🇭 Switzerland $33,126 21.5%
North Carolina 🇩🇪 Germany $9,208 15.1%
North Dakota 🇨🇦 Canada $1,781 62.3%
Ohio 🇨🇦 Canada $10,624 16.2%
Oklahoma 🇨🇦 Canada $4,355 40.2%
Oregon 🇨🇦 Canada $2,951 17.0%
Pennsylvania 🇨🇳 China $13,470 15.9%
Puerto Rico 🇮🇪 Ireland $9,062 42.7%
Rhode Island 🇩🇪 Germany $1,525 17.3%
South Carolina 🇩🇪 Germany $6,220 15.5%
South Dakota 🇨🇦 Canada $428 33.9%
Tennessee 🇨🇳 China $20,305 24.3%
Texas 🇲🇽 Mexico $88,726 35.8%
Utah 🇲🇽 Mexico $4,294 27.6%
Vermont 🇨🇦 Canada $1,677 63.5%
Virginia 🇨🇳 China $6,566 22.7%
Virgin Islands 🇵🇹 Portugal $174 27.7%
Washington 🇨🇦 Canada $12,772 26.1%
West Virginia 🇨🇦 Canada $1,025 35.2%
Wisconsin 🇨🇳 China $5,554 20.7%
Wyoming 🇨🇦 Canada $695 63.7%

However, one country in particular stands out on this map—China.

While the USMCA trade agreement has created an easy gateway for necessary goods and services to flow across North America, no country—not even the U.S.—can escape the need for mass imports from the world’s top exporter.

China and the U.S. have an imbalanced trade relationship, with China buying much fewer goods from the U.S. than the U.S. buys from them. In fact, China’s monthly trade surplus with the country sat at $31.8 billion as of May 2021.

Who are the States Exporting to?

After looking at the top import partners by state, let’s dive in to where the U.S. states are exporting the most.

Trading Partner of Every U.S. State

One thing that is noticeable is that China shows up much less on this map, further exemplifying the trade imbalance. In other words, while many states’ top import partner is China, they are not reciprocating as the country’s top export partner.

The only states that export their largest shares to China are:

  • Oregon – 38.1%
  • Alaska – 25.5%
  • Washington – 22.1%
  • Alabama – 18.1%
  • Louisiana – 18.1%

The majority are exporting to their North American neighbors. For example, North Dakota sends 84.6% of its exports just across the northern border.

State Top Country Total State Export (Millions USD) Share of total State Exports
Alabama  🇨🇳 China $3,102 18.1%
Alaska 🇨🇳 China $1,176 25.5%
Arizona 🇲🇽 Mexico $36 35.5%
Arkansas 🇨🇦 Canada $1,148 22.1%
California 🇲🇽 Mexico $24,078 15.4%
Colorado 🇨🇦 Canada $1,278 15.4%
Connecticut 🇩🇪 Germany $2,189 15.9%
Delaware 🇨🇦 Canada $619 15.8%
D.C. 🇶🇦 Qatar $899 32.4%
Florida 🇧🇷 Brazil $3,538 7.7%
Georgia 🇨🇦 Canada $5,146 13.3%
Hawaii 🇦🇺 Australia $51 15.8%
Idaho 🇨🇦 Canada $1,184 34.8%
Illinois 🇨🇦 Canada $13,261 24.8%
Indiana 🇨🇦 Canada $11,080 31.4%
Iowa 🇨🇦 Canada $3,460 27.4%
Kansas 🇲🇽 Mexico $2,078 20.0%
Kentucky 🇨🇦 Canada $6,550 26.5%
Louisiana 🇨🇳 China $10,779 18.1%
Maine 🇨🇦 Canada $1,229 52.8%
Maryland 🇨🇦 Canada $1,581 12.5%
Massachusetts 🇨🇦 Canada $2,746 11.0%
Michigan 🇨🇦 Canada $17,341 39.4%
Minnesota 🇨🇦 Canada $4,828 24.0%
Mississippi 🇨🇦 Canada $2,082 20.3%
Missouri 🇨🇦 Canada $4,453 34.9%
Montana 🇨🇦 Canada $544 37.9%
Nebraska 🇲🇽 Mexico $1,639 23.5%
Nevada 🇨🇭 Switzerland $2,256 21.8%
New Hampshire 🇩🇪 Germany $751 13.8%
New Jersey 🇨🇦 Canada $7,229 19.0%
New Mexico 🇲🇽 Mexico $2,197 59.5%
New York 🇨🇦 Canada $13,773 22.3%
North Carolina 🇨🇦 Canada $5,881 20.7%
North Dakota 🇨🇦 Canada $4,388 84.6%
Ohio 🇨🇦 Canada $17,273 38.4%
Oklahoma 🇨🇦 Canada $1,452 27.0%
Oregon 🇨🇳 China $9,522 38.1%
Pennsylvania 🇨🇦 Canada $9,699 25.9%
Puerto Rico 🇳🇱 Netherlands $2,889 17.2%
Rhode Island 🇨🇦 Canada $410 17.1%
South Carolina 🇩🇪 Germany $4,082 13.5%
South Dakota 🇨🇦 Canada $524 38.0%
Tennessee 🇨🇦 Canada $5,818 20.7%
Texas 🇲🇽 Mexico $89,046 31.9%
Utah 🇬🇧 United Kingdom $8,906 50.3%
Vermont 🇨🇦 Canada $918 38.3%
Virginia 🇨🇦 Canada $2,717 16.5%
Virgin Islands 🇳🇱 Netherlands $90 15.2%
Washington 🇨🇳 China $9,126 22.1%
West Virginia 🇨🇦 Canada $1,283 28.1%
Wisconsin 🇨🇦 Canada $6,226 30.4%
Wyoming 🇨🇦 Canada $225 19.3%

Trade Going Forward

The trade war that started during the tenure of former U.S. president Donald Trump is still ongoing and tariffs set by the U.S. are not expected to be lifted by president Joe Biden, as tensions have expanded beyond just trade issues.

These tariffs, however, have not helped to rectify the significant trade imbalance between the two countries. The states are still extremely reliant on imports from China, and it is not a reciprocal relationship.

The post Mapped: The Top Trading Partner of Every U.S. State appeared first on Visual Capitalist.

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An Introduction to MSCI ESG Indexes

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The following content is sponsored by MSCI

Visualizing Investment Data

An Introduction to MSCI ESG Indexes

There are various portfolio objectives within the realm of sustainable investing.

For example, some investors may want to build a portfolio that reflects their personal values. Others may see environmental, social, and governance (ESG) criteria as a tool for improving long-term returns, or as a way to create positive impact. A combination of all three of these motivations is also possible.

To support investors as they embark on their sustainable journey, our sponsor, MSCI, offers over 1,500 purpose-built ESG indexes. In this infographic, we’ll take a holistic view at what these indexes are designed to achieve.

An Extensive Suite of ESG & Climate Indexes

Below, we’ll summarize the four overarching objectives that MSCI’s ESG & climate indexes are designed to support.

Objective 1: Integrate a broad set of ESG issues

Investors with this objective believe that incorporating ESG criteria can improve their long-term risk-adjusted returns.

The MSCI ESG Leaders indexes are designed to support these investors by targeting companies that have the highest ESG-rated performance from each sector of the parent index.

For those who do not wish to deviate from the parent index, the MSCI ESG Universal indexes may be better suited. This family of indexes will adjust weights according to ESG performance to maintain the broadest possible universe.

Objective 2: Generate social or environmental benefits

A common challenge that impact investors face is measuring their non-financial results.

Consider an asset owner who wishes to support gender diversity through their portfolios. In order to gauge their success, they would need to regularly filter the entire investment universe for updates regarding corporate diversity and related initiatives.

In this scenario, linking their portfolios to an MSCI Women’s Leadership Index would negate much of this groundwork. Relative to a parent index, these indexes aim to include companies which lead their respective countries in terms of female representation.

Objective 3: Exclude controversial activities

Many institutional investors have mandates that require them to avoid certain sectors or industries. For example, approximately $14.6 trillion in institutional capital is in the process of divesting from fossil fuels.

To support these efforts, MSCI offers indexes that either:

  • Exclude individual sectors such as fossil fuels, tobacco, or weapons;
  • Exclude companies from a combination of these sectors; or
  • Exclude companies that are not compatible with certain religious values.

Objective 4: Identify climate risks and opportunities

Climate change poses a number of wide-reaching risks and opportunities for investors, making it difficult to tailor a portfolio accordingly.

With MSCI’s climate indexes, asset owners gain the tools they need to build a more resilient portfolio. The MSCI Climate Change indexes, for example, reduce exposure to stranded assets, increase exposure to solution providers, and target a minimum 30% reduction in emissions.

An Index for Every Objective

Regardless of your motivation for pursuing sustainable investment, the need for an appropriate benchmark is something that everyone shares.

With an extensive suite of ESG indexes designed specifically for sustainability and climate change, MSCI aims to support asset owners as they build a more unique and personalized portfolio.

The post An Introduction to MSCI ESG Indexes appeared first on Visual Capitalist.

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