Best ESG stocks to buy in 2022

Environmental Social Governance (ESG) investing has emerged as a popular investment strategy in recent years. This page selects the best ESG stocks for you to get started today.
By:
Updated: Sep 24, 2022
Tip: our preferred broker is, eToro: visit & create account

ESG investing is the idea of putting your money into well run, socially-responsible companies with sustainable business practices. Our experts have chosen the best ESG stocks on the market right now so that you can start investing in ethical companies right away.

What are the top ESG stocks to buy?

You can invest in the most socially responsible companies by choosing from the stocks in the table below. Click on the links to find the most up to date price information or scroll down to learn more about each company. 

#Stock symbolCompany nameTrade now
1MSFTMicrosoft Corporation
2NKENike, Inc.
3AAPLApple, Inc.
4GSGoldman Sachs Group, Inc.
5EBAYeBay, Inc.
List selected by our team of analysts, updated 9 December 2021.

1. Microsoft Corporation (NASDAQ: MSFT)

Microsoft is a big tech market leader that develops and supports a range of software technology. The company increasingly focuses on ESG issues that pertain to investors interested in values-based investing. 

The software giant currently has the highest rankings in energy management, employee diversity and inclusion, and systemic risk management. As per their most recent Corporate Social Responsibility (CSR) Report, the company is committed to providing inclusive economic opportunity, sustainable production, and maintaining fundamental employment rights.

Most notable examples of their ESG initiatives include funding 243,000 global nonprofits with $1.9 billion, providing broadband internet access to 17 million people worldwide in rural areas, and pledging to extract all the carbon historically emitted from company operations by 2050.

Find out more about how to invest in Microsoft stocks in our comprehensive guide.

2. Nike, Inc. (NYSE: NKE)

Nike is an athletic footwear, apparel, and equipment company that is hugely popular with sports and fitness enthusiasts worldwide. The company focuses its productivity on helping to tackle complex challenges faced by the global community.

The company has consistently ranked in the top 20 of the 100 ‘Best Corporate Citizens’. It stands out from its competition (thousands of large US public companies) as a leader in the field of ESG.

Nike was the first company to release a ‘Manufacturing Map’ to show full transparency in its supply chain – a key indicator of responsible governance. Furthermore, the company continues to demonstrate its commitment through an Annual Sustainability Report as well as a CSR committee on its board of management.

Find out more about how to invest in Nike stocks in our comprehensive guide.

3. Apple, Inc. (NASDAQ: AAPL)

Apple is a big tech giant that designs and manufactures a range of consumer electronics and software goods. Company management is wholly dedicated to building a more sustainable future as an ethos behind its productivity.

It should come as no surprise then that the company features in the majority holdings of notable ESG ETFs. For instance, the BlackRock ESG fund predominantly holds AAPL stock at 5.82% of its overall holdings. 

Already considered to be a carbon neutral company, Apple has pledged to become completely carbon neutral across all aspects of its production by 2030. The stock is a stable blue chip with low-risk price volatility thanks to its standing as an ethical investment option that prevents regulatory scrutiny. 

Find out more about how to invest in Apple stocks in our comprehensive guide.

4. Goldman Sachs Group, Inc. (NYSE: GS)

Goldman Sachs is a multinational financial institution that creates and delivers a range of financial products and services. The bank aims to appeal to the millennial consumer that is committed to a sustainable planet through its ESG performance.

The company believes in driving sustainability. As such, the bank has launched the Goldman Sachs Future Planet Equity ETF. This ETF focuses on companies committed to ESG through clean energy, efficiency of resources, sustainable consumption, water sustainability, and the circular economy.

Goldman recently issued a statement that building a low-carbon and an inclusive economy is a business priority. Alongside its ESG ETF, GS has also issued ESG bonds that aim to finance socially and environmentally conscious projects. The company is just getting started on sustainable finance and plans to invest $750 billion into ESG initiatives by 2030.

Find out more about how to invest in Goldman Sachs stocks in our comprehensive guide.

5. eBay, Inc. (NASDAQ: EBAY)

eBay is an international e-commerce company that enables sellers and buyers to engage in business activity on its virtual market platform. With a continued focus on second hand sales, 16% of eBay’s revenues are considered to be environmentally friendly. 

As the company’s business model is centred on connecting buyers with sellers, it removes many ESG pitfalls around warehouse labour and services. True to its calling as a pre-owned commerce hub, eBay has positively contributed to growing global waste management concerns – the company has saved 17,771 tonnes of fashion waste from landfills.

Furthermore, eBay is wholly committed to ESG in releasing detailed ‘Impact Progress Reports’. The latest of which charted the company’s progress in sustainability goals, i.e.: increase in the number of sellers from less advantaged communities and a 50% overall reduction in its greenhouse gas emissions by 2025. 

Find out more about how to invest in eBay stocks in our comprehensive guide.

Where to buy the best ESG stocks

The best place to purchase ESG stocks is an online brokerage. We have chosen the best brokers as displayed below for your ease. 

1
Min. Deposit
$ 10
Promotion
User Score
10
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Payment Methods:
Bank Transfer, Wire Transfer
Full Regulations:
CySEC, FCA
Investoo Ltd is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc., as applicable. This compensation incentivizes Investoo Ltd to describe those products and services in favorable terms. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.
2
Min. Deposit
$ 100
Promotion
User Score
10
Trade out-of-hours on over 70+ US stocks
Get exposure to a wide range of popular UK, US and international stocks
Enjoy flexible access to more than 17,000 global markets, with reliable execution
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal
Full Regulations:
ASIC, FCA, FINMA, is a licensed bank (IG Bank in Switzerland)
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
3
Min. Deposit
$ 0
Promotion
User Score
9.5
$0 commission and $0 Options contract fees
Upgraded research with advanced charts
Smart Menus for faster trades
Start Trading
Payment Methods:
Full Regulations:

What is an ESG stock?

A company that focuses on ESG values in carrying out their operations is referred to as an ESG stock. ESG refers to a company’s environmental, social, and governance values. These ensure that a company runs in a fair and responsible manner while taking care of its employees and operating environment.

The most notable big-name examples of this type of company are the ones we have covered above (i.e. Microsoft, Nike, and Apple), but ESG is not solely focused on the top of the market. Companies that take their ESG responsibilities seriously can be from any sector of the market.

Are ESG stocks a good investment?

Yes, because a focus on ESG criteria as an investment strategy ensures that investors avoid companies that pose greater financial risk to their portfolios due to their adverse environmental and/or other practices. Companies that should be avoided are those that operate in higher-risk areas or those that have major or recent controversies with ESG issues. 

Investors should focus on companies that exhibit positive ESG criteria for each component. Some examples would be; for environment, companies that release carbon or sustainability reports; for social, companies that operate with ethical policies; for governance, companies that ensure their management is fair and diverse. 

ESG investors are leading the market towards a more sustainable future. Investors must do their own due diligence to ensure the stocks they are interested in meet ESG criteria. Picking the right broker for the cause is crucial, you will find our list of the best brokers for ESG stocks below.

Latest stock market news


Sources & references
Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >