The 12 stocks highlighted below fit that description, offering exposure to sustainability without losing focus on financial performance. In the past four quarters, Mondelez posted an average EPS of over 84 cents. Therefore, even with such a strong focus on ESG directives, the financial print remains robust.

Environmental steward: Microsoft

These trends, along with the recently introduced Xcelium app, should drive continued growth for the company. The company is also highly profitable with a 20% adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, and a track record of outperforming the S&P 500. Investors should know that the Federal Trade Commission issued an opinion in 2024, finding the company engaged in deceptive advertising practices. Intuit’s 2024 revenues came in at $16.3 billion, up 13%, with net income reaching $2.96 billion.

But the shares have fallen 7.9% over the past 12 months as investors worry that a downturn in consumer spending could clip Prologis’s rental income. That’s short-term thinking, considering Prologis’s size, quality markets, and healthy balance sheet. Large investors began to pull out of groups formed to advocate that companies adhere to tough climate goals. Despite that, our picks did well compared with the broader market in the 12 months that ended August 31, 2024.

Best EV Stocks and ETFs for 2025

Thus, part of the bullish narrative for CLH stock centers on its natural monopoly. While other enterprises can compete with Clean Harbors, the barriers – including regulations – are quite steep. For fiscal 2024, analysts are anticipating EPS may reach $3.50 on sales of $36.84 billion, up 9.7% and 2.3%, respectively, on a year over year basis. If ever the criticism comes that “do-gooder” organizations can’t succeed financially, Bunge will prove doubters wrong. Microsoft offers so many initiatives covering sustainability and other holistic efforts targeting broader wellness and equity that it’s difficult to cover in any single article. For me, one of the most impressive ambitions that the company forwarded is its aim to be carbon negative – not just neutral – by 2030.

iShares Trust – iShares Esg Aware 40/60 Moderate Allocation ETF

Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months. In fact, Verge argues this company’s supercheap AI technology should concern rivals. What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution. ETFs can help eliminate risk because they tend to be less volatile than individual stocks and give exposure to a range of assets. By 2050, the company plans to offset all the carbon emissions it’s produced since 1975. Microsoft is the world’s largest software company and a dominant cloud platform provider.

Investing for good

Profit margins are catching up to (but still behind) the average for software companies in its peer group. It has been a tough year for investors who include environmental, social and corporate governance (ESG) factors when assembling their portfolios, as well as our picks of companies and funds that are ESG leaders. Even better, the financials don’t appear to have suffered from its ESG efforts. In the past four quarters, the company’s average earnings surprise reached 3.35%.

Investing in ESG ETFs

The stock still isn’t cheap, trading at 49 times estimated earnings for the year ahead, but we’re not checking out of Costco. For details on how our picks have performed and why we think they are standouts, read on. Importantly, we believe our ESG picks represent good business prospects as well. Indeed, some experts believe the current backlash presents an opportune moment for investors with a longer-term view.

HCL Technologies Ltd.

For fiscal 2024, analysts anticipate EPS of $14.32 on sales of $27.85 billion, up 16.8% and 11%, respectively, on a year-over-year basis. Danaher’s commitment to ESG is evident in its governance structure and environmental goals. The company’s board of directors best esg stocks provides direct oversight of ESG-related issues, ensuring their integration into the core business strategy.

As an ESG investor, you don’t have to forgo solid returns to promote good corporate citizenship. Nvidia’s chips are tops for the complex computing that artificial intelligence requires. „Despite its blue-chip REIT status, the company does not trade at a meaningful premium to peers, and we think it should,“ says analyst Jonathan Petersen, of investment firm Jefferies. Year-over-year revenue growth at its Azure cloud business, home to many of its AI services, hit 39% in the quarter that ended June 30, compared with a 31% growth rate two quarters prior. Analyst Jay Sole of investment firm UBS, who likes the consumer discretionary stock, says the company is transforming into a global retailer with a „lifestyle brand“ that appeals to both men and women. It’s worth noting that although U.S. investors continued to flee ESG, the story is different outside the country.

He pointed to moderating inflation, accommodative Fed policy, solid GDP growth, and healthy earnings as reasons why stocks remain appealing at record levels. Over the past 10 years, Cadence has produced total annualized returns for shareholders of more than 30%. For the 2023 fiscal year, the company expects reported revenue growth of 15% $4.09 billion or greater. Based on historical performance and strong business models, these stocks should continue to perform well for long-term investing as part of an ESG strategy.

Analysts maintain a “Moderate Buy” consensus rating for TYL, with an average 12-month price target of $680.50, indicating a forecasted upside of 17.91% from current price levels. This blend of strong financial performance and a clear, positive societal impact through its core business makes Tyler Technologies a compelling choice for conscious investors. Keysight demonstrates a strong commitment to corporate social responsibility (CSR). Its CSR vision centers on building a better planet through innovation and operating within an ethical, environmentally sustainable, and socially responsible global business framework. The company exhibits robust ESG reporting and oversight, implementing a strong whistleblower program and adhering to policies that govern environmental issues and social supply chain standards.

For 2025, RELX anticipates continued strong underlying revenue growth, with underlying adjusted operating profit growth expected to slightly exceed revenue growth across all its segments. Analysts forecast the company’s earnings to grow by 8.7% and revenue by 5.9% per annum. These scores are typically assigned by rating agencies like MSCI, Sustainalytics, or Refinitiv, and they help investors evaluate the risks and opportunities tied to sustainability and ethical behaviour within a company.

Of our favorite ESG funds, only one outperformed its respective peer group, and we’re making several changes. However, the high-side revenue target of $62.38 billion may represent a nearly 5% growth rate from last year. The iShares ESG Aware Moderate Allocation ETF (EAOM -0.05%) is a one-stop shop for sustainability-focused investors. The portfolio maintains a composition of about 40% stocks and 60% bonds by way of other iShares ESG funds. The advantages of this structure are that the fund does not need to be rebalanced and is highly diversified. ESG is a broad category, so start by identifying issues that are most important to you.

The company exceeded expectations for revenue, profits and profit margins in its most recent quarter and is generating healthy cash flow with very little debt. And the government’s desire to push Chinese companies out of the market is a plus. Twenty-nine of 35 analysts who cover the stock rate it a Buy, according to S&P Global Market Intelligence.