Your investments are worth more than you think. If you consider impact investing and going for ESG funds, then your decisions could help make the world a better place. Although not every company fits the ESG criteria, there are still a lot of corporations that you might want to add to your portfolio in the future.
If you’re looking for the next socially responsible brand to consider supporting, then here are some of the companies with the best ESG scores from financial institutions.
Standing in as the parent company of Google, Alphabet inc. is Yahoo! Finance’s top ESG company in 2022. While it does have a lot of CSR efforts, the main reason for getting the title is that Alphabet has made billions of dollars worth of ESG-related investments just this year.
As per reports, Google issued a massive $5.75 billion in sustainability bonds – the highest across the industry. Furthermore, it’s an active supporter of sustainable practices. In 2022, Alphabet was able to match around 66% of used electricity in its data centers using carbon-free sources.
Exelon owns fossil, nuclear, wind, hydroelectric, biomass, and solar generating facilities. They are said to be the largest producer of zero-carbon electricity in the US. They continue to expand and improve their facilities to further meet this claim.
Earlier this year, Exelon was able to split its power generation and competitive energy business. The latter of which is called Constellation Energy Corp. This new structure is going to be beneficial particularly for ESG investors as Constellation Energy Corp. is now just starting up – a good time to invest!
Apple is undoubtedly one of the leading tech brands in the world. The company is an innovator, particularly in the personal gadgets sector. What many don’t know is that Apple is also the leading brand in the tech industry in terms of ESG rating.
The main focus of Apple is to make their production more sustainable. In 2021, it’s reported that 20% of all materials used in creating their products were recycled. This is a new record by the company. To further look at the numbers, Apple has shipped 59% of their aluminum, and 45% of their rare earth elements from recycled sources.
Aside from this, Apple also makes continuous efforts to reduce their carbon dioxide emissions yearly. Thanks to its consistent string of good sales and their eco-friendly efforts, Apple has become the most popular ESG stock around.
The Coca-Cola Company isn’t just a leader in the consumer products industry, they’re also one of the pioneers in ESG. As a global brand, Coca-Cola continues to support the three pillars of ESG making them a constant high-scorer in ratings.
The biggest step that Coca-Cola takes in terms of sustainability is that it takes a lot of effort in recycling the containers they place their products in. They also employ sustainable practices to maximize their conservation of water as well.
And if it wasn’t obvious enough through their inclusivity campaigns, Coca-Cola is also a pioneer when it comes to equality and social justice. They also launch projects that help support minorities such as races and the LGBTQ+ community.
Coca-Cola’s key competitor, PepsiCo, is also one of the frontrunners in the consumer goods industry when it comes to ESG efforts. Just last year, they announced that they are planning on reaching net-zero greenhouse gas emissions by 2040.
Additionally, they are also working to promote sustainable agricultural practices even further. This doesn’t just reduce carbon emissions, it also makes the solid healthier. Last year, these said practices were applied to 345,000 acres of the land it owns.
Like Coca-Cola, Pepsi is hoping to make 100% of its packaging compostable, reusable, biodegradable, or recyclable.
Intel Corporation is in an industry that’s infamous for its carbon dioxide emissions. The company is going to set a new status quo by aiming on achieving net-zero greenhouse gas emissions globally by 2040 at least. The company has continued to heavily invest in its ESG goals which makes it a key player in the sector to look out for.
Just last year, Intel was able to save about 486 million kWh of electricity and its total emissions decreased by 2% from the previous year.
The constant need for computing power makes Intel a relevant brand no matter the trends in its industry. As it continues to set new standards for sustainability, there’s a very good chance that investing in Intel is going to be a profitable endeavor for ESG investors like you in the future.
Payments king PayPal Holdings Inc. has major plans for the future. By 2040, they plan on reaching net-zero emissions which is a big feat considering how intensive their payment transactions are. Aside from this, they are also planning to use renewable energy on all of their data centers by next year.
As of now, PayPal powers around 50% of their 13 data centers and 22 POPs with renewable resources. Lastly, they are also planning on cutting operational greenhouse gas emissions by 25% in 2025.
Microsoft Corporation is planning on becoming carbon neutral by 2030 at least. This plan was set by the company in January last year. Since then, they’ve been able to cut their carbon emissions by 6% in a span of a year. During that time, they’ve also removed 1.3 million metric tons of carbon from their projects around the world.
The company has also revealed their plans to become water positive by 2030 as well. They aim on becoming a zero waste producer throughout its direct waste footprint.
ESG Stocks Are A Great Find
As you can see from this list, some big names are key players in saving the world and solving its societal problems. If you’re new to impact investing, make sure to weigh all of your options as aside from these top names, there are also smaller key players worth supporting.