Cintas makes its debut in Newsweek’s third-annual corporate social responsibility rankings
Cintas Corporation (Nasdaq: CTAS) was recently honored among Newsweek’s 2022 America’s Most Responsible Companies.
Newsweek notes that its America’s Most Responsible Companies list is “based on a holistic view of corporate responsibility” and equally considers the three ESG areas in its rankings – environment, social and corporate governance – to formulate a final “CSR Score” that is used to rank companies.
“We believe that ESG is central to Cintas and it’s influenced our sustainable business model since our company’s origins during the Great Depression,” said Todd Schneider, Cintas President and CEO. “Environmental, social and governance concepts are engrained in our company and we appreciate the recognition for our recent performance in these areas.
“Cintas has made a tremendous effort to reduce our environmental impact; foster an inclusive, supportive atmosphere for our employee-partners; and establish ourselves as a moral and ethical company. Our corporate culture is based on doing what’s right and using positive discontent to push ourselves to be better. Being recognized for our success to date is certainly gratifying, but we also acknowledge that we must continue to challenge ourselves to make stronger impacts in these areas while continuing to do so in an admirable way,” Schneider continued.
The 2022 edition of the list marks the company’s debut on Newsweek’s third-annual rankings, which began in 2020. Statista, a leading global provider of market and consumer data, provided the analysis for Newsweek.
Cintas was selected for Newsweek’s list following a four-phase review of the 2,000 largest public companies in the U.S.
Newsweek and Statista’s evaluation for the America’s Most Responsible Companies List was based on publicly available information as of June 30, 2021, which included Cintas’ 2020 ESG Report. The company’s expanded 2021 ESG Report had not been published at that time and was not considered in the 2022 evaluation, nor was fiscal year 2021 ESG data that was final, but not yet public at that time.
How the Rankings were Determined
Newsweek and Statista developed the 2022 rankings using a four-phase process. The candidate pool was curated from the top 2,000 public companies by revenue with headquarters in the U.S., and banks and insurance companies included had total assets that exceeded $50 billion.
From there, pre-screening continued. Companies that published a corporate social responsibility report in 2019 or 2020 – or something similar like a sustainability or ESG report – were considered so long as they reported at least one relevant key performance index (KPI) in the environment sector as of June 30, 2021.
Further, companies were removed from consideration if their activities focused primarily on defense, or if they were involved in major lawsuits or scandals.
Statista then performed a detailed review of the remaining candidate companies, which included surveying more than 11,000 U.S. residents and researching the company’s performance in relevant KPIs including waste, emissions, water use, energy use, environmental engagement, leadership diversity, employees, philanthropy and engagement, disclosure and transparency, and economic performance.
The scoring model calculated their CSR Score based on detailed analysis of the data they collected in the three areas, which represent 70% of each area’s component score, and the incorporation of the reputational survey results, which completed the other 30% of each area’s component score.
The final environment, social and governance component scores were weighted equally to determine companies’ final CSR scores.
The 500 companies with the highest CSR scores were then awarded designation among “America’s Most Responsible Companies.”
Cintas Corporation
Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing products and services that help keep their customers’ facilities and employees clean, safe, and looking their best. With offerings including uniforms, mats, mops, restroom supplies, first aid and safety products, fire extinguishers and testing, and safety training, Cintas helps customers get Ready for the Workday®. The company is also the creator of the Total Clean Program™ — a first-of-its-kind service that includes scheduled delivery of essential cleaning supplies, hygienically clean laundering, and sanitizing and disinfecting products and services. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and Nasdaq-100 Index.
Article Credits: Yahoo Finance