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.
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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.
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:
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 [email protected] or at 800-290-5460.
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