DEFINITION of 'Sustainable Business 20 - SB20'
A group of stocks that are chosen according to the companies' ability to provide products and services while contributing to a sustainable economy. The SB20 are selected yearly by a panel of judges with experience in analyzing sustainable stocks. The list attempts to identify innovative and progressive companies with the potential to positively affect the goal of a more sustainable society.
BREAKING DOWN 'Sustainable Business 20 - SB20'
The SB20 is not a list of top buys. Rather, it is a list of companies that are both financially strong and sustainable. The stock list comprises companies of various sizes, locations and industries, but it doesn't create a well diversified portfolio.
Two main criteria are used when picking SB20 stock:
Sustainable: the company must be exciting and must excel in solving social or environmental problems.
Financial: The company must be profitable (or close to it) and have a stock trading over $1.00.