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: Srijani Chatterjee
Srijani Chatterjee
Srijani is the quintessential Third Culture Kid having grown up in India, Singapore, Malaysia, The Netherlands, Scotland, and England.… read more.
Updated: Dec 9, 2021
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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 name
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.

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.

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. 

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.

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. 

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
$50
Promotion
User Score
10
Trade/invest in stocks with just $50
Invest for dividends and get payout on stocks on Ex-Dividend day
Over 11 payment methods, including PayPal
Start Trading
Description:
eToro is a multi-asset investment platform with more than 2000 assets, including FX, stocks, ETF’s, indices and commodities. eToro users can connect with, learn from, and copy or get copied by other users. Buying stocks on eToro is free and you can invest with as little as $50.
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
2
Min. Deposit
$1
Promotion
User Score
9.3
0 Commissions and no deposit minimums
Registered with and regulated by SEC and FINRA
Loss of cash protection
Start Trading
Description:
Financial company driven by technology and offering all-in-one self-directed investment platform that provides excellent user experience.
Payment Methods
Full regulations list:

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

Apple shares have weakened from their recent highs above $140, and the current price stands around $128. Apple reported better than expected second-quarter results last week, and the company increased the quarterly dividend by 7.3%. Fundamental analysis: Morgan Stanley raised its target on Apple from $158 to $161 Apple shares…
Under Armour (NYSE: UAA) shares have weakened from their recent highs despite better than expected first-quarter results. The U.S. stock market is losing some ground this Tuesday, which also negatively influences Under Armour shares. Fundamental analysis: Under Armour shares are not undervalued Under Armour is an American sports equipment…
McDonald’s shares advanced after the company reported better than expected first-quarter results and closed the week at $236,08. Fundamental analysis: UBS raised its price target from $240 to $255 Even with the COVID-19 pandemic, this company’s business is going well, and McDonald’s reported better than expected first-quarter results last week.
Amazon shares have advanced above $3500 after better than expected first-quarter results, and according to the technical analysis, shares of this company could advance even more. Fundamental analysis: Amazon’s business continues to grow rapidly Amazon’s business continues to grow rapidly, and the company has become a supply channel for many…
Nokia reported better than expected first-quarter results this Thursday, shares have stabilized above the $4 support level, and the company seems well-positioned for earnings growth in the upcoming period. Fundamental analysis: Nokia is well-positioned for earnings growth Nokia Corporation is a Finnish multinational telecommunications, information technology, and consumer electronics company…
Microsoft (NASDAQ: MSFT) shares have weakened from their record highs above $260, and the current price stands around $254. Microsoft reported better than expected third-quarter results this Tuesday, and according to the technical analysis, shares of this company continue to trade in a bull market. Fundamental analysis: Microsoft reported…

Fact-checking & references

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