The 2024 JUST 100 list ranks Hewlett Packard Enterprise as the top company for worker benefits.

• In Just Capital's annual ranking of public companies on key stakeholder issues, technology stocks have surpassed financials as the top-ranked sector, with Hewlett Packard Enterprise holding the top spot from last year's No. 1, Bank of America.
• This year's rankings saw four semiconductor chip companies excel, placing among the top 20.
• In 2024, Apple is the only company from the previous year's top 20 list, while Microsoft and Alphabet have dropped in rank compared to previous years.

Technology stocks have regained the top spot in the JUST 100, an annual ranking of large public companies on critical issues to the American public, surpassing last year's No. 1.

HPE was ranked first among tech peers in the JUST 100 index, a consistent leader in the technology sector. The company's strong commitment to its employees, communities, and the environment helped it excel in three key categories. HPE's comprehensive employee benefits, including the longest maternity and paternity leave of any company, its initiatives to help workers re-enter the workforce, and its strict net zero goals and carbon emissions disclosures were instrumental in its success.

Worker pay, benefits, and opportunities are the most important factors for top performance, according to Just Capital's methodology, which is based on annual polling of the American public and how Americans define "doing right by all stakeholders."

Martin Whittaker, CEO of Just Capital, emphasized the importance of worker issues in their research, which has consistently shown that workers' concerns have risen in polling data. The JUST 100 methodology now places workers at the forefront, with "paying a fair and living wage" being the top issue within this category, accounting for nearly 18% of the methodology.

Fair pay is always for workers, as Whittaker stated.

HPE and other companies were ranked higher in the 2024 JUST 100 rankings due to career advancement opportunities, worker training and development, benefits and retention. According to Whittaker, these issues all revolve around the question of being a good employer.

"The competition for talent is intense, as top talent in key roles is still being contested," stated Kristin Major, HPE's chief people officer. She added that it's not just about attracting top talent, but also about retaining it and ensuring that those who have joined the company are happy there.

Since 2019, HPE has provided 26 weeks of paid parental leave, which is the longest among companies in the Russell 1000 universe reviewed by Just Capital, and also offers a part-time work option for employees returning to work after their leave ends.

Major stated that many companies do not offer this benefit or combine it with disability. She emphasized its significance and shared that it is a common topic of discussion among workers when they visit her office. Approximately 4,000 workers have utilized the benefit over the past five years, according to Major.

The nonprofit ranked HPE's "resume gap" program for re-entering the workforce.

HPE CEO Antonio Neri stated in a CNBC interview on Monday morning that the company has a maniacal focus on driving operating efficiency and operating leverage for shareholders. However, he emphasized that the people of HPE are their greatest asset and ultimately deliver the value to shareholders. In response to this, the company is doubling down on its workforce.

Tech’s biggest names drop, but more chip stocks move up

In the annual rankings, HPE has increased, but notable tech companies such as Apple, Microsoft, and Alphabet have decreased, with only Apple remaining in the JUST 100 and finishing among the top 20.

This year, six new companies joined the top 10 list of The JUST 100, resulting in significant turnover at the top.

That’s good news, according to the nonprofit.

Instead of losing focus on key issues, former list leaders are being joined by more companies who are disclosing more information needed for the annual evaluation.

Those companies are not moving backward, but I believe competition is on the rise," he stated. "We understand the importance of disclosure and disclosure is increasing at a rapid pace.

The Russell 1000 universe has seen an increase in carbon emissions year over year, while issues of pay equity by race and gender remain disclosed, according to Just Capital.

According to Whittaker, the key worker issues that are heavily weighted in the rankings also experienced an acceleration of companies investing in workers and communities, becoming more creative in their approaches, and with some industries getting their act together in recent years.

Whittaker stated that while the previous years' top companies are not less committed to their goals, they cannot afford to remain stagnant and assume they will maintain their position.

Companies are increasingly emphasizing ESG issues to employees during a politically divisive time and expanding their core business offerings to improve rankings.

Ecolab, which has risen 14 positions to rank among the top 10 companies and has improved its position on the list by hundreds of spots in the past five years, has "significantly enhanced its benefits," according to Whittaker. The company's parental leave policies, dependent care, flexible working hours, and high worker retention rate are among the benefits that have been improved. Additionally, Ecolab is committed to sustainability, which extends to being a leader in the workforce.

Emilio Tenuta, the chief sustainability officer at Ecolab, emphasized the importance of getting employees across its operations, co-located at data centers and manufacturing sites, to buy into its stakeholder approach to issues including net zero. According to Tenuta, this has been key to achieving an exponential return on investment (EROI) through the understanding and mindset of 25,000 employees in the field.

According to Tenuta, ESG and any other three-letter acronym has become a polarizing issue. Organizations that adopt this approach because it is the right thing to do will not succeed. Instead, the commitment must be strengthened by delivering on business performance and results. If this is achieved, the argument can be countered, and it provides an opportunity to help associates while growing the business and making a positive impact on the world.

ESG, DEI controversy, AI issues

As the ESG space has become increasingly controversial, companies are trying to navigate how to discuss these issues in the context of their specific business while striving to be the best employer they can be. Whittaker explained that companies want to be fair and grow in the market, and it's clear that having diverse leadership leads to a better exchange of ideas and more insights. However, there is no one-size-fits-all approach to DEI and ESG. Companies must understand their industry, stakeholders, and customers to effectively implement these initiatives.

Ecolab has been involved in the intersection of what's trending for the past five years, according to Tenuta. However, consumers are somewhat cynical about these goals, so Ecolab has to be more nuanced in tying it to the business case. Ecolab works with other market leaders, including Dow, Starbucks, Microsoft, and Meta (both of whom are tech clients), on the Water Resilience Coalition, a group of 37 companies representing $4.8 trillion.

HPE's key focus for the future is to bridge the gap between its core tech sector business and its focus on workers by leveraging AI in the labor market. This will involve ensuring that all businesses and functions are equipped with the necessary tools and resources to learn and develop, as well as reskill team members to stay relevant in the rapidly evolving field of AI. As such, HPE is receiving inquiries in the area of general AI, with employees expressing a desire to stay ahead of the curve and remain competitive in the job market.

In a CNBC interview on Monday morning, HPE CEO Paul Tudor Jones stated that the productivity gains from AI are one of the two major challenges facing the economy, alongside the nation's high debt level. He anticipates that productivity could increase by as much as double from current levels. However, distributing these gains fairly throughout society and maintaining stability as tens of millions of jobs are at risk between now and 2030 will be a significant challenge.

Neri emphasized the importance of reinvesting future productivity from AI in the workforce amid recent job losses in tech and stock market gains for companies like Meta tied to major cost-cutting initiatives. "We are living in an amazing time and these techs will help us be better at what we do, so we can lean back into those benefits for the workforce and value for shareholders," Neri said. "Skilling people to this new reality is a benefit."

According to Whittaker, companies that excel in creating value for stakeholders also achieve success in generating value for shareholders. He stated, "Our indices are performing exceptionally well."

Since its inception in 2019, the JUST 100 Index has outperformed the Russell 1000 Equal Weighted Index by 38.5%.

Full rankings and information for the JUST 100 are available from Just Capital.