Revealed: Netherlands and Finland global leaders in corporate sustainability

The index reveals that continental Europe leads the way when it comes to corporate-level sustainability.

For the fourth-consecutive year, the Netherlands earns the title of world's most sustainable stock market, followed by Finland.

The index is part of investment research giant Morningstar's latest so-called Sustainability Atlas, which looks at the sustainability profiles of 48 country-specific equity indexes. 

These indexes span developed and emerging markets and represent 97% of global market capitalization, but vary significantly across ESG risk criteria.

Hong Kong overtakes France for third place and confirms itself as the highest-scoring non-European market for sustainability, thanks to companies like AIA Group. However, the Hong Kong market also has a High Carbon Intensity score.

The United States ranks in the second quintile of global sustainability leaders thanks to big names such as Apple, Microsoft, and Berkshire Hathaway.

"At the same time, the level of ESG risks faced by Amazon, Meta, and Exxon Mobil is classified as High," Morningstar said in an email to Net Zero Investor.

"The U.S. lands in one of the world's least carbon-intensive equity markets, ranking in the second quintile."

The main reason lies in its tilt toward the technology, consumer cyclical, communication services, financial services, and healthcare sectors and minimal exposure to energy and utilities.