Environmental, social and governance (ESG) pressures for companies are rising quickly in the face of regulatory pressure and volatile energy, tech, social and political events. All the more reason investors need to know where to find the best ESG stocks.
X
ESG investors want to be in the best position to both protect their portfolios and profit in these changing times. They understand that ESG gives a critical view on the risk of a business and helps gauge how resilient or ready for a low-carbon future a company might be.
Below, IBD presents its fifth annual 100 Best ESG Companies list.
Read Our Full Special Report On IBD's 2023 100 Best ESG Companies, Our Feature Story On Green Patent Innovation And See The Full List Of Winners.
Public companies that made our 2023 100 best ESG stocks list combine high Dow Jones sustainability scores with superior IBD technical and fundamental stock ratings. They are standouts for ESG investing.
To build the 2023 100 Best ESG Companies list, we started with each company's environmental, social and governance (ESG) sustainability score created by Dow Jones Newswires, an IBD affiliate. These scores capture a broad spectrum of information on the ESG profile of more than 6,000 global companies. To create the scores, Dow Jones combines publicly available company data with an analysis of media coverage on each company. Thousands of English-language sources available via Factiva, Dow Jones' media aggregation and business intelligence platform, were analyzed to build these scores.
IBD Newsletters
Get exclusive IBD analysis and actionable news daily.
IBD Newsletters
Get exclusive IBD analysis and actionable news daily.
Please enter a valid email address
Please select a newsletter
Get these newsletters delivered to your inbox & more info about our products & services. Privacy Policy & Terms of Use
Thank You!
You will now receive IBD Newsletters
Something Went Wrong!
Please contact customer service
On Aug. 24, IBD asked Dow Jones for an ESG-scored list of all the U.S.-traded companies it tracks, a total of 2,067. We then cut the list to 1,559 companies on Aug. 25 by removing nonpublic companies and companies with stock prices below $10 a share. Additionally, we removed any companies that lacked sufficient data to create an IBD Composite Rating.
We further qualified the list by removing those companies that did not meet or beat the S&P 500 in the past five years. We selected the 100 with the highest IBD Composite Rating — all with scores of 81 or better, putting them in the top 20%. To break any ties, we looked at companies' Relative Strength Rating and then, if needed, their EPS Rating. Finally, we ranked the 100 companies by Dow Jones' ESG score, using the IBD Composite Rating to break ties.
Best ESG Stocks: Meet The Top 3
Topping the list this year is Microsoft (MSFT). Applied Materials (AMAT) took second place. In third place is Woodward (WWD).
Microsoft also ranked highly on our list of 3 best companies in 8 industry sectors, as well as on our list of top-scoring companies in 5 sustainability dimensions.
Verisk Analytics (VRSK) and Mastercard (MA) finished fourth and fifth respectively on this year's IBD Best ESG Companies list.
To check current stock ratings and charts visit the IBD Stock Checkup page.
Read our profiles and interviews on the top-scoring companies:
- Microsoft: This 'Magnificent Seven' Stock Also Is The Best ESG Company
- At Applied Materials, Cutting Carbon Emissions Is A Team Effort
- Woodward's Focus On Energy Pays Off with High ESG Score, Strong Stock Performance
Note: At the bottom of the table, be sure to scroll to the right to see all the columns. Data is as of Aug. 25.
| Rank | Company | Symbol | Industry | ESG score | Comp Rtg | RS Rtg | EPS Rtg | SMR Rtg | 3-yr EPS growth rate | ROE | Last qtr sales % chg | Last qtr EPS % chg | Div yield |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Microsoft | (MSFT) | Computer Software - Desktop | 72.76 | 98 | 89 | 96 | B | 18 | 39 | 8 | 21 | 0.80 |
| 2 | Applied Materials | (AMAT) | Electronics - Semiconductor Equipment | 71.71 | 94 | 91 | 85 | A | 29 | 55 | -1 | -2 | 0.80 |
| 3 | Woodward | (WWD) | Aerospace/Defense | 71.69 | 97 | 93 | 85 | B | -9 | 8 | 30 | 114 | 0.70 |
| 4 | Verisk Analytics | (VRSK) | Commercial Services - Market Research | 71.58 | 93 | 91 | 89 | A | 2 | 35 | 10 | 19 | 0.50 |
| 5 | Mastercard | (MA) | Finance - Credit Card/Payment Processing | 71.57 | 95 | 87 | 86 | A | 22 | 152 | 14 | 13 | 0.50 |
| 6 | Caterpillar | (CAT) | Machinery - Construction/Mining | 70.66 | 99 | 92 | 92 | A | 35 | 45 | 22 | 75 | 1.90 |
| 7 | Marathon Petroleum | (MPC) | Oil & Gas - Refining/Marketing | 69.42 | 84 | 95 | 35 | B | N.A. | 50 | -32 | -50 | 2.00 |
| 8 | Nvidia | (NVDA) | Electronics - Semiconductor Mfg | 69.4 | 99 | 99 | 93 | A | 25 | 34 | 101 | 429 | 0.03 |
| 9 | Dover | (DOV) | Machinery - General Industrial | 68.65 | 86 | 50 | 79 | B | 17 | 29 | -3 | -4 | 1.40 |
| 10 | Motorola Solutions | (MSI) | Telecom - Consumer Products | 68.54 | 83 | 69 | 95 | A | 13 | 4684 | 12 | 28 | 1.20 |
| 11 | Bunge | (BG) | Agricultural Operations | 68.21 | 90 | 90 | 93 | C | 30 | 25 | -16 | 25 | 2.30 |
| 12 | Sherwin-Williams | (SHW) | Chemicals - Paints | 68.17 | 91 | 85 | 95 | A | 5 | 83 | 6 | 37 | 0.80 |
| 13 | Dell Technologies | (DELL) | Computer Hardware - Peripherals | 67.07 | 86 | 98 | 40 | C | 11 | 0 | -100 | -29 | N.A. |
| 14 | Adobe | (ADBE) | Computer Software - Desktop | 66.75 | 98 | 96 | 96 | A | 17 | 45 | 10 | 17 | N.A. |
| 15 | Mondelez | (MDLZ) | Food - Confectionary | 66.74 | 83 | 70 | 88 | B | 7 | 15 | 17 | 17 | 2.30 |
| 16 | Church & Dwight | (CHD) | Soap & Cleaning Preparations | 66.4 | 86 | 80 | 87 | B | 3 | 22 | 10 | 21 | 1.10 |
| 17 | Meta Platforms | (META) | Internet - Content | 66.33 | 98 | 98 | 87 | B | -1 | 19 | 11 | 31 | N.A. |
| 18 | Air Products & Chemicals | (APD) | Chemicals - Specialty | 66.15 | 84 | 72 | 92 | A | 11 | 17 | -5 | 16 | 2.40 |
| 19 | Gartner | (IT) | Commercial Services - Market Research | 65.82 | 85 | 66 | 93 | A | 46 | 305 | 9 | 0 | N.A. |
| 20 | Arthur J. Gallagher | (AJG) | Insurance - Brokers | 65.66 | 98 | 87 | 96 | A | 23 | 19 | 20 | 17 | 0.90 |
| 21 | Lam Research | (LRCX) | Electronics - Semiconductor Equipment | 65.06 | 90 | 93 | 71 | B | 30 | 76 | -31 | -32 | 1.00 |
| 22 | TJX | (TJX) | Retail - Apparel/Shoes Accessories | 65 | 95 | 90 | 88 | A | 132 | 59 | 8 | 23 | 1.50 |
| 23 | Owens Corning | (OC) | Building - Construction Products MSC | 64.53 | 96 | 96 | 89 | B | 50 | 28 | -1 | 10 | 1.50 |
| 24 | Jabil | (JBL) | Electronics - Contract Mfg | 64.48 | 91 | 95 | 95 | B | 48 | 48 | 2 | 16 | 0.30 |
| 25 | Alphabet | (GOOGL) | Internet - Content | 64.04 | 98 | 93 | 90 | A | 30 | 24 | 7 | 17 | N.A. |
| 26 | Deckers Outdoor | (DECK) | Apparel - Shoes & Related Mfg | 63.83 | 96 | 92 | 98 | A | 22 | 31 | 10 | 45 | N.A. |
| 27 | Arista Networks | (ANET) | Computer - Networking | 63.37 | 97 | 94 | 98 | A | 39 | 33 | 39 | 46 | N.A. |
| 28 | Onsemi | (ON) | Electronics - Semiconductor Equipment | 63.13 | 84 | 90 | 77 | A | 116 | 44 | 0 | -1 | N.A. |
| 29 | Tetra Tech | (TTEK) | Pollution Control | 62.95 | 86 | 70 | 96 | A | 17 | 20 | 36 | 19 | 0.60 |
| 30 | Marriott | (MAR) | Leisure - Lodging | 62.93 | 91 | 89 | 76 | A | 148 | 220 | 14 | 26 | 1.00 |
| 31 | Eli Lilly | (LLY) | Medical - Diversified | 62.81 | 98 | 97 | 87 | A | 7 | 73 | 28 | 69 | 0.80 |
| 32 | Jacobs Solutions | (J) | Building - Heavy Construction | 62.78 | 93 | 80 | 82 | B | 10 | 15 | 9 | -2 | 0.70 |
| 33 | Visa | (V) | Finance - Credit Card/Payment Processing | 62.71 | 95 | 85 | 91 | A | 21 | 44 | 12 | 9 | 0.70 |
| 34 | Commercial Metals | (CMC) | Metals - Processing & Fabrication | 62.54 | 83 | 84 | 83 | B | 67 | 36 | -7 | -23 | 1.10 |
| 35 | Federal Signal | (FSS) | Security/Safety | 62.36 | 87 | 84 | 93 | B | 8 | 15 | 21 | 26 | 0.60 |
| 36 | Fortinet | (FTNT) | Computer Software - Security | 62.15 | 97 | 73 | 99 | A | 34 | 385 | 26 | 58 | N.A. |
| 37 | Zoetis | (ZTS) | Medical - Ethical Drugs | 61.83 | 90 | 85 | 90 | A | 11 | 51 | 6 | 18 | 0.80 |
| 38 | Cadence Design Systems | (CDNS) | Computer Software - Design | 61.62 | 95 | 91 | 95 | A | 24 | 43 | 14 | 13 | N.A. |
| 39 | Clean Harbors | (CLH) | Pollution Control | 60.47 | 85 | 90 | 94 | B | 66 | 23 | 3 | -13 | N.A. |
| 40 | Workday | (WDAY) | Computer Software - Enterprise | 60.46 | 99 | 95 | 99 | A | 22 | 19 | 17 | 58 | N.A. |
| 41 | Microchip Tech | (MCHP) | Electronics - Semiconductor Mfg | 60.22 | 83 | 58 | 96 | A | 33 | 54 | 17 | 20 | 2.10 |
| 42 | CoStar | (CSGP) | Commercial Services - Market Research | 60.11 | 84 | 72 | 83 | B | 11 | 8 | 13 | 11 | N.A. |
| 43 | Chipotle Mexican Grill | (CMG) | Retail - Restaurants | 59.97 | 93 | 79 | 98 | A | 65 | 39 | 14 | 36 | N.A. |
| 44 | Prologis | (PLD) | Finance - Property REITs | 59.65 | 87 | 51 | 96 | A | 17 | 8 | 96 | 65 | 2.80 |
| 45 | HubSpot | (HUBS) | Computer Software - Specialty Enterprise | 59.43 | 99 | 96 | 99 | A | 48 | 15 | 25 | 205 | N.A. |
| 46 | Booking Holdings | (BKNG) | Leisure - Travel Booking | 59.43 | 98 | 95 | 82 | A | 278 | 89 | 27 | 97 | N.A. |
| 47 | Watts Water Technologies | (WTS) | Building - Construction Products/MSC | 59.21 | 94 | 82 | 93 | B | 31 | 19 | 1 | 11 | 0.70 |
| 48 | AppFolio | (APPF) | Computer Software - Specialty Enterprise | 59.14 | 97 | 97 | 76 | C | N.A. | 0 | 25 | 667 | N.A. |
| 49 | American Homes 4 Rent | (AMH) | Finance - Property REITs | 58.86 | 84 | 77 | 83 | B | 15 | 4 | 9 | 6 | 2.40 |
| 50 | Iron Mountain | (IRM) | Commercial Services - Document Management | 58.51 | 94 | 84 | 76 | A | 8 | 69 | 5 | -4 | 4.20 |
| 51 | Parker-Hannifin | (PH) | Machinery - General Industrial | 58.36 | 99 | 92 | 96 | A | 22 | 28 | 22 | 18 | 1.40 |
| 52 | Taylor Morrison | (TMHC) | Building - Residential/Commercial | 58.33 | 92 | 94 | 92 | B | 58 | 25 | 3 | -7 | N.A. |
| 53 | Rockwell Automation | (ROK) | Electrical Power - Equipment | 58.31 | 85 | 62 | 90 | A | 12 | 43 | 14 | 13 | 1.50 |
| 54 | Martin Marietta Materials | (MLM) | Building Materials - Cement/Concrete | 58.24 | 95 | 87 | 97 | B | 9 | 11 | 11 | 41 | 0.60 |
| 55 | Costco Wholesale | (COST) | Retail - Major Discount Chains | 58.2 | 91 | 80 | 95 | B | 14 | 30 | 2 | 18 | 0.70 |
| 56 | Cintas | (CTAS) | Commercial Services - Outsourcing | 57.99 | 96 | 79 | 96 | A | 17 | 38 | 10 | 19 | 1.10 |
| 57 | Paychex | (PAYX) | Commercial Services - Outsourcing | 57.65 | 86 | 58 | 92 | A | 15 | 45 | 7 | 20 | 2.90 |
| 58 | Intuit | (INTU) | Computer Software - Financial | 57.54 | 98 | 93 | 97 | A | 27 | 26 | 7 | 17 | 0.60 |
| 59 | Booz Allen Hamilton | (BAH) | Commercial Services - Consulting | 57.52 | 93 | 85 | 96 | A | 11 | 59 | 18 | 30 | 1.60 |
| 60 | Vulcan Materials | (VMC) | Building Materials - Cement/Concrete | 57.41 | 91 | 87 | 77 | B | -8 | 10 | 8 | 50 | 0.80 |
| 61 | Idexx Laboratories | (IDXX) | Medical - Systems/Equipment | 57.37 | 88 | 77 | 97 | A | 16 | 105 | 10 | 76 | N.A. |
| 62 | Trex | (TREX) | Building - Construction Products/MSC | 57.21 | 86 | 94 | 64 | C | 6 | 32 | -8 | -10 | N.A. |
| 63 | Consol Energy | (CEIX) | Energy - Coal | 57.09 | 99 | 97 | 79 | A | N.A. | 51 | 21 | 40 | 3.90 |
| 64 | Fair Isaac | (FICO) | Computer Software - Financial | 57.08 | 98 | 96 | 96 | A | 30 | 0 | 14 | 27 | N.A. |
| 65 | Tempur Sealy International | (TPX) | Household Office Furniture | 56.95 | 89 | 94 | 81 | B | 20 | 355 | 5 | 0 | 1.00 |
| 66 | Stryker | (SYK) | Medical - Products | 56.94 | 88 | 86 | 87 | A | 12 | 23 | 11 | 13 | 1.00 |
| 67 | Veeva Systems | (VEEV) | Computer Software - Medical | 56.87 | 95 | 92 | 93 | A | 22 | 21 | 4 | -8 | N.A. |
| 68 | MSA Safety | (MSA) | Security/Safety | 56.72 | 96 | 91 | 92 | A | 12 | 25 | 20 | 42 | 1.00 |
| 69 | Graco | (GGG) | Machinery - General Industrial | 56.17 | 85 | 62 | 92 | A | 17 | 26 | 2 | 10 | 1.20 |
| 70 | Regeneron Pharmaceuticals | (REGN) | Medical - Biotech | 55.91 | 92 | 83 | 83 | B | 19 | 25 | 11 | 5 | N.A. |
| 71 | Morningstar | (MORN) | Commercial Services - Market Research | 55.82 | 88 | 89 | 63 | B | -12 | 13 | 7 | 37 | 0.60 |
| 72 | Illinois Tool Works | (ITW) | Machinery - General Industrial | 55.77 | 83 | 66 | 78 | A | 14 | 85 | 2 | 9 | 2.30 |
| 73 | Emcor | (EME) | Building - Maintenance & Services | 55.72 | 98 | 96 | 97 | B | 16 | 19 | 12 | 48 | 0.30 |
| 74 | S&P Global | (SPGI) | Commercial Services - Market Research | 55.64 | 84 | 74 | 86 | A | -1 | 20 | 4 | 11 | 0.90 |
| 75 | M/I Homes | (MHO) | Building - Residential/Commercial | 55.53 | 93 | 98 | 92 | B | 43 | 27 | -3 | -14 | N.A. |
| 76 | Lithia Motors | (LAD) | Retail - Wholesale Auto | 55.38 | 93 | 89 | 80 | B | 52 | 26 | 12 | -10 | 0.60 |
| 77 | KB Home | (KBH) | Building - Residential/Commercial | 55.26 | 92 | 95 | 82 | B | 52 | 24 | 3 | -16 | 1.60 |
| 78 | Aecom Technology | (ACM) | Building - Heavy Construction | 55.23 | 90 | 62 | 87 | B | 21 | 19 | 13 | 11 | 0.80 |
| 79 | Raymond James Financial | (RJF) | Financial - Investment Bank/Brokers | 55.2 | 94 | 74 | 94 | A | 28 | 18 | 19 | 15 | 1.60 |
| 80 | Vertex Pharmaceuticals | (VRTX) | Medical - Biotech | 55.2 | 91 | 81 | 89 | A | 22 | 32 | 14 | 8 | N.A. |
| 81 | Terex | (TEX) | Machinery - Construction/Mining | 55.08 | 99 | 92 | 91 | A | 181 | 26 | 30 | 120 | 1.20 |
| 82 | Pathward Financial | (CASH) | Financial - Savings & Loan | 54.93 | 96 | 85 | 98 | A | 20 | 18 | 31 | 89 | 0.40 |
| 83 | Paycom Software | (PAYC) | Computer Software - Enterprise | 54.55 | 84 | 28 | 98 | A | 29 | 34 | 27 | 29 | 0.50 |
| 84 | Extreme Networks | (EXTR) | Computer - Networking | 54.36 | 97 | 94 | 96 | A | 101 | 143 | 31 | 120 | N.A. |
| 85 | United Rentals | (URI) | Commercial Services - Leasing | 54.31 | 96 | 91 | 96 | A | 32 | 35 | 28 | 26 | 1.30 |
| 86 | ATI | (ATI) | Steel - Specialty Alloys | 54.3 | 95 | 92 | 62 | A | N.A. | 33 | 9 | 9 | N.A. |
| 87 | Casey's Retail | (CASY) | Retail - SPR/Mini markets | 54.3 | 83 | 74 | 92 | B | 16 | 18 | -4 | -7 | 0.70 |
| 88 | Walmart | (WMT) | Retail - Major Discount Chains | 54.26 | 86 | 83 | 83 | B | 6 | 21 | 6 | 4 | 1.40 |
| 89 | ITT | (ITT) | Machinery - General Industrial | 54.21 | 97 | 90 | 93 | B | 15 | 17 | 14 | 36 | 1.10 |
| 90 | RBC Bearings | (RBC) | Metals - Processing & Fabrication | 54.15 | 91 | 77 | 89 | A | 26 | 10 | 9 | 20 | N.A. |
| 91 | Herc Holdings | (HRI) | Commercial Services - Leasing | 54.14 | 92 | 70 | 95 | A | 71 | 33 | 25 | 9 | 2.00 |
| 92 | Houlihan Lokey | (HLI) | Financial - Investment Bank/Brokers | 54 | 85 | 89 | 69 | C | 15 | 21 | -1 | -19 | 2.10 |
| 93 | Lennox International | (LII) | Building - A/C & Heating Products | 53.99 | 97 | 96 | 93 | n.a. | 17 | 0 | 3 | 22 | 1.20 |
| 94 | Hawkins | (HWKN) | Chemicals - Basic | 53.83 | 96 | 93 | 97 | B | 27 | 18 | 2 | 19 | 1.10 |
| 95 | Paccar | (PCAR) | Trucks & Parts - Heavy Duty | 53.5 | 95 | 90 | 92 | A | 41 | 24 | 24 | 70 | 1.20 |
| 96 | Beazer Homes | (BZH) | Building - Residential/Commercial | 53.46 | 91 | 98 | 71 | B | 79 | 27 | 9 | -19 | N.A. |
| 97 | Inter Parfums | (IPAR) | Cosmetics/Personal Care | 53.39 | 88 | 87 | 96 | A | 64 | 20 | 26 | 27 | 1.80 |
| 98 | Broadcom | (AVGO) | Electronics - Semiconductor Mfg | 53.22 | 93 | 94 | 92 | A | 28 | 70 | 8 | 14 | 2.10 |
| 99 | Gulfport Energy | (GPOR) | Oil & Gas - US Exploration & Discovery | 53.21 | 83 | 95 | 11 | B | 24 | 64 | -35 | -55 | N.A. |
| 100 | Kadant | (KAI) | Machinery - General Industrial | 53.09 | 96 | 81 | 89 | B | 31 | 18 | 11 | 13 | 0.50 |
Sources: IBD, Dow Jones. This list includes only U.S-traded stocks priced at 10-plus and among the top-ranked companies in Dow Jones ESG scores. All data is as of 8/25/23. The 100 companies on this list are ranked by ESG score. Ties are broken by the highest IBD Composite Ratings, and then by RS Rating and EPS Rating. All stocks on the list met or beat the S&P 500 over the past five years.
The Best ESG Companies logos and accolades are available for licensing through Investor's Business Daily's partner, The YGS Group, by email at [emailprotected]or at 800-290-5460.
YOU MAY ALSO LIKE:
Two Of The World's Richest Men Loaded Up On The Exact Same Stock
Learn How To Time The Market With IBD's ETF Market Strategy
Find Today's Best Growth Stocks To Watch With IBD 50
Join IBD Live Each Morning For Stock Tips Before The Open
