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Investors Business Daily
Investors Business Daily
Business
ANNE STANLEY

IBD's 100 Best ESG Companies For 2023

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.

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. Applied Materials took second place. In third place is Woodward.

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 and Mastercard 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 Computer Software - Desktop 72.76 98 89 96 B 18 39 8 21 0.80
2 Applied Materials Electronics - Semiconductor Equipment 71.71 94 91 85 A 29 55 -1 -2 0.80
3 Woodward Aerospace/Defense 71.69 97 93 85 B -9 8 30 114 0.70
4 Verisk Analytics Commercial Services - Market Research 71.58 93 91 89 A 2 35 10 19 0.50
5 Mastercard Finance - Credit Card/Payment Processing 71.57 95 87 86 A 22 152 14 13 0.50
6 Caterpillar Machinery - Construction/Mining 70.66 99 92 92 A 35 45 22 75 1.90
7 Marathon Petroleum Oil & Gas - Refining/Marketing 69.42 84 95 35 B N.A. 50 -32 -50 2.00
8 Nvidia Electronics - Semiconductor Mfg 69.4 99 99 93 A 25 34 101 429 0.03
9 Dover Machinery - General Industrial 68.65 86 50 79 B 17 29 -3 -4 1.40
10 Motorola Solutions Telecom - Consumer Products 68.54 83 69 95 A 13 4684 12 28 1.20
11 Bunge Agricultural Operations 68.21 90 90 93 C 30 25 -16 25 2.30
12 Sherwin-Williams Chemicals - Paints 68.17 91 85 95 A 5 83 6 37 0.80
13 Dell Technologies Computer Hardware - Peripherals 67.07 86 98 40 C 11 0 -100 -29 N.A.
14 Adobe Computer Software - Desktop 66.75 98 96 96 A 17 45 10 17 N.A.
15 Mondelez Food - Confectionary 66.74 83 70 88 B 7 15 17 17 2.30
16 Church & Dwight Soap & Cleaning Preparations 66.4 86 80 87 B 3 22 10 21 1.10
17 Meta Platforms Internet - Content 66.33 98 98 87 B -1 19 11 31 N.A.
18 Air Products & Chemicals Chemicals - Specialty 66.15 84 72 92 A 11 17 -5 16 2.40
19 Gartner Commercial Services - Market Research 65.82 85 66 93 A 46 305 9 0 N.A.
20 Arthur J. Gallagher Insurance - Brokers 65.66 98 87 96 A 23 19 20 17 0.90
21 Lam Research Electronics - Semiconductor Equipment 65.06 90 93 71 B 30 76 -31 -32 1.00
22 TJX Retail - Apparel/Shoes Accessories 65 95 90 88 A 132 59 8 23 1.50
23 Owens Corning Building - Construction Products MSC 64.53 96 96 89 B 50 28 -1 10 1.50
24 Jabil Electronics - Contract Mfg 64.48 91 95 95 B 48 48 2 16 0.30
25 Alphabet Internet - Content 64.04 98 93 90 A 30 24 7 17 N.A.
26 Deckers Outdoor Apparel - Shoes & Related Mfg 63.83 96 92 98 A 22 31 10 45 N.A.
27 Arista Networks Computer - Networking 63.37 97 94 98 A 39 33 39 46 N.A.
28 Onsemi Electronics - Semiconductor Equipment 63.13 84 90 77 A 116 44 0 -1 N.A.
29 Tetra Tech Pollution Control 62.95 86 70 96 A 17 20 36 19 0.60
30 Marriott Leisure - Lodging 62.93 91 89 76 A 148 220 14 26 1.00
31 Eli Lilly Medical - Diversified 62.81 98 97 87 A 7 73 28 69 0.80
32 Jacobs Solutions Building - Heavy Construction 62.78 93 80 82 B 10 15 9 -2 0.70
33 Visa Finance - Credit Card/Payment Processing 62.71 95 85 91 A 21 44 12 9 0.70
34 Commercial Metals Metals - Processing & Fabrication 62.54 83 84 83 B 67 36 -7 -23 1.10
35 Federal Signal Security/Safety 62.36 87 84 93 B 8 15 21 26 0.60
36 Fortinet Computer Software - Security 62.15 97 73 99 A 34 385 26 58 N.A.
37 Zoetis Medical - Ethical Drugs 61.83 90 85 90 A 11 51 6 18 0.80
38 Cadence Design Systems Computer Software - Design 61.62 95 91 95 A 24 43 14 13 N.A.
39 Clean Harbors Pollution Control 60.47 85 90 94 B 66 23 3 -13 N.A.
40 Workday Computer Software - Enterprise 60.46 99 95 99 A 22 19 17 58 N.A.
41 Microchip Tech Electronics - Semiconductor Mfg 60.22 83 58 96 A 33 54 17 20 2.10
42 CoStar Commercial Services - Market Research 60.11 84 72 83 B 11 8 13 11 N.A.
43 Chipotle Mexican Grill Retail - Restaurants 59.97 93 79 98 A 65 39 14 36 N.A.
44 Prologis Finance - Property REITs 59.65 87 51 96 A 17 8 96 65 2.80
45 HubSpot Computer Software - Specialty Enterprise 59.43 99 96 99 A 48 15 25 205 N.A.
46 Booking Holdings Leisure - Travel Booking 59.43 98 95 82 A 278 89 27 97 N.A.
47 Watts Water Technologies Building - Construction Products/MSC 59.21 94 82 93 B 31 19 1 11 0.70
48 AppFolio Computer Software - Specialty Enterprise 59.14 97 97 76 C N.A. 0 25 667 N.A.
49 American Homes 4 Rent Finance - Property REITs 58.86 84 77 83 B 15 4 9 6 2.40
50 Iron Mountain Commercial Services - Document Management 58.51 94 84 76 A 8 69 5 -4 4.20
51 Parker-Hannifin Machinery - General Industrial 58.36 99 92 96 A 22 28 22 18 1.40
52 Taylor Morrison Building - Residential/Commercial 58.33 92 94 92 B 58 25 3 -7 N.A.
53 Rockwell Automation Electrical Power - Equipment 58.31 85 62 90 A 12 43 14 13 1.50
54 Martin Marietta Materials Building Materials - Cement/Concrete 58.24 95 87 97 B 9 11 11 41 0.60
55 Costco Wholesale Retail - Major Discount Chains 58.2 91 80 95 B 14 30 2 18 0.70
56 Cintas Commercial Services - Outsourcing 57.99 96 79 96 A 17 38 10 19 1.10
57 Paychex Commercial Services - Outsourcing 57.65 86 58 92 A 15 45 7 20 2.90
58 Intuit Computer Software - Financial 57.54 98 93 97 A 27 26 7 17 0.60
59 Booz Allen Hamilton Commercial Services - Consulting 57.52 93 85 96 A 11 59 18 30 1.60
60 Vulcan Materials Building Materials - Cement/Concrete 57.41 91 87 77 B -8 10 8 50 0.80
61 Idexx Laboratories Medical - Systems/Equipment 57.37 88 77 97 A 16 105 10 76 N.A.
62 Trex Building - Construction Products/MSC 57.21 86 94 64 C 6 32 -8 -10 N.A.
63 Consol Energy Energy - Coal 57.09 99 97 79 A N.A. 51 21 40 3.90
64 Fair Isaac Computer Software - Financial 57.08 98 96 96 A 30 0 14 27 N.A.
65 Tempur Sealy International Household Office Furniture 56.95 89 94 81 B 20 355 5 0 1.00
66 Stryker Medical - Products 56.94 88 86 87 A 12 23 11 13 1.00
67 Veeva Systems Computer Software - Medical 56.87 95 92 93 A 22 21 4 -8 N.A.
68 MSA Safety Security/Safety 56.72 96 91 92 A 12 25 20 42 1.00
69 Graco Machinery - General Industrial 56.17 85 62 92 A 17 26 2 10 1.20
70 Regeneron Pharmaceuticals Medical - Biotech 55.91 92 83 83 B 19 25 11 5 N.A.
71 Morningstar Commercial Services - Market Research 55.82 88 89 63 B -12 13 7 37 0.60
72 Illinois Tool Works Machinery - General Industrial 55.77 83 66 78 A 14 85 2 9 2.30
73 Emcor Building - Maintenance & Services 55.72 98 96 97 B 16 19 12 48 0.30
74 S&P Global Commercial Services - Market Research 55.64 84 74 86 A -1 20 4 11 0.90
75 M/I Homes Building - Residential/Commercial 55.53 93 98 92 B 43 27 -3 -14 N.A.
76 Lithia Motors Retail - Wholesale Auto 55.38 93 89 80 B 52 26 12 -10 0.60
77 KB Home Building - Residential/Commercial 55.26 92 95 82 B 52 24 3 -16 1.60
78 Aecom Technology Building - Heavy Construction 55.23 90 62 87 B 21 19 13 11 0.80
79 Raymond James Financial Financial - Investment Bank/Brokers 55.2 94 74 94 A 28 18 19 15 1.60
80 Vertex Pharmaceuticals Medical - Biotech 55.2 91 81 89 A 22 32 14 8 N.A.
81 Terex Machinery - Construction/Mining 55.08 99 92 91 A 181 26 30 120 1.20
82 Pathward Financial Financial - Savings & Loan 54.93 96 85 98 A 20 18 31 89 0.40
83 Paycom Software Computer Software - Enterprise 54.55 84 28 98 A 29 34 27 29 0.50
84 Extreme Networks Computer - Networking 54.36 97 94 96 A 101 143 31 120 N.A.
85 United Rentals Commercial Services - Leasing 54.31 96 91 96 A 32 35 28 26 1.30
86 ATI Steel - Specialty Alloys 54.3 95 92 62 A N.A. 33 9 9 N.A.
87 Casey's Retail Retail - SPR/Mini markets 54.3 83 74 92 B 16 18 -4 -7 0.70
88 Walmart Retail - Major Discount Chains 54.26 86 83 83 B 6 21 6 4 1.40
89 ITT Machinery - General Industrial 54.21 97 90 93 B 15 17 14 36 1.10
90 RBC Bearings Metals - Processing & Fabrication 54.15 91 77 89 A 26 10 9 20 N.A.
91 Herc Holdings Commercial Services - Leasing 54.14 92 70 95 A 71 33 25 9 2.00
92 Houlihan Lokey Financial - Investment Bank/Brokers 54 85 89 69 C 15 21 -1 -19 2.10
93 Lennox International Building - A/C & Heating Products 53.99 97 96 93 n.a. 17 0 3 22 1.20
94 Hawkins Chemicals - Basic 53.83 96 93 97 B 27 18 2 19 1.10
95 Paccar Trucks & Parts - Heavy Duty 53.5 95 90 92 A 41 24 24 70 1.20
96 Beazer Homes Building - Residential/Commercial 53.46 91 98 71 B 79 27 9 -19 N.A.
97 Inter Parfums Cosmetics/Personal Care 53.39 88 87 96 A 64 20 26 27 1.80
98 Broadcom Electronics - Semiconductor Mfg 53.22 93 94 92 A 28 70 8 14 2.10
99 Gulfport Energy Oil & Gas - US Exploration & Discovery 53.21 83 95 11 B 24 64 -35 -55 N.A.
100 Kadant 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 IBDlicensing@theygsgroup.com or at 800-290-5460.

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