In this article, we look at 15 of the biggest ESG companies in the world. If you want to see more of the world’s biggest ESG companies, go directly to 5 Biggest ESG Companies in the World.
As demonstrated by the rapid growth of electric vehicles, consumers are increasingly interested in environmental sustainability. Although it may cost less, it is worth it to many consumers if it helps save the environment and fight climate change.
Over the years, investors have become more interested in sustainability than just profit. For ESG investors, it’s worth not making a lot of money if it helps make the world more sustainable.
Although ESG actually originated in the 1960’s as socially responsible investing, ESG investing has grown significantly in recent decades. One reason is that global warming is becoming a bigger problem today than it was in the 1960’s. Another reason is that ESG activists can make a bigger difference because of the internet in their calls for more income equality or better corporate governance. With the internet, many people have also realized that our world is not sustainable on its current path unless we help improve it.
ESG
ESG stands for environmental, social, and governance. In ESG investing, investors evaluate how well a company is doing on environmental issues such as reducing their carbon emissions, social issues such as how companies help their communities , and management issues such as management diversity.
In ESG investing, an investor may choose to invest in a company that performs well on ESG issues but has a slightly higher valuation than a company that has similar qualities but is not good on ESG. .
Due to changing consumer behavior, ESG investing can also add value. McKinsey explains,
Although there are many differences in practice, including customers who refuse to pay even 1 percent more, we found that upwards of 70 percent of consumers surveyed make purchases in many industries, including categories of automotive, building, electronics, and packaging, said they would pay an additional 5 percent for a green product if it met the same performance standards as a nongreen alternative. In another study, nearly half (44 percent) of the companies we surveyed identified business and growth opportunities as the motivation for starting their sustainability programs. The payments are real. When Unilever created Sunlight, a dishwashing liquid brand that used less water than its other brands, sales of Sunlight and other Unilever water-saving products continued to outpace growth in category of more than 20 percent in many water-scarce markets. And Finland’s Neste, founded as a traditional petroleum refining company more than 70 years ago, now generates more than two-thirds of its profits from renewable fuels and byproducts. related to continuity.
2022
Although many ESG companies have growth potential, 2022 will be a difficult year for the market. To fight inflation, the Federal Reserve has raised interest rates six times this year alone and many analysts think the central bank may continue to raise them.
While October inflation was lower than expected and the market has recently rallied, there is still uncertainty and potential downside if economic data fails to meet expectations.
As a result, it can be a good idea for long-term investors to own a well-diversified portfolio of stocks in many different sectors.
procedures
For our list of the 15 Largest ESG Companies in the World, we took the 15 largest stocks from the Vanguard ESG US Stock ETF (ESGV) in terms of % of the fund and we reranked them based on their market capitalization since on November 12. We did not include Alphabet Inc Class A (GOOGL) shares because we already included Alphabet once in the list.
We have included the number of hedge fund holders in our database who held shares of the same stock at the end of Q2 2022.
15 Largest ESG Companies in the World
15. Pfizer Inc. (NYSE:PFE)
Market Capitalization as of November 12: $267.19 billion
Number of Hedge Fund Holders: 70
Pfizer Inc. (NYSE:PFE) is a company that makes a positive impact on patients and society through its scientific breakthroughs in medicines. Pfizer Inc. (NYSE:PFE) explained for its 2021 year, “Never before has our impact been so extensive in terms of the number of patients treated or vaccinated with a Pfizer product. We have reached an estimated 1.4 billion patients with our medicines and vaccines – roughly one in every six people on Earth. Even when we separate our COVID-19 products, we treat an estimated 424 million patients worldwide.” Until November 12, Pfizer Inc. (NYSE:PFE) has a market capitalization of $267.19 billion.
14. Bank of America Corporation (NYSE:BAC)
Market Capitalization as of November 12: $308.14 billion
Number of Hedge Fund Holders: 99
Bank of America Corporation (NYSE:BAC) is an ESG leader because its employees volunteer millions of hours to help the community. Bank of America Corporation (NYSE:BAC) also has a 2030 target to become carbon neutral and significantly reduce its waste by that year. As of 11/12, Bank of America Corporation (NYSE:BAC) has a market capitalization of $308.14 billion.
13. The Home Depot, Inc. (NYSE:HD)
Market Capitalization as of November 12: $322.41 billion
Number of Hedge Fund Holders: 80
The Home Depot, Inc. (NYSE:HD) has made its business more sustainable as it has cut US electricity use by nearly half since 2010. Home Depot, Inc. (NYSE:HD) is also making progress toward its goal of producing or purchasing 100% renewable electric equivalent by 2030. As of November 12, The Home Depot, Inc. (NYSE:HD) has a market capitalization of $322.41 billion.
12. Mastercard Incorporated (NYSE:MA)
Market Capitalization as of November 12: $326.21 billion
Number of Hedge Fund Holders: 137
Mastercard Incorporated (NYSE:MA) has a goal of reducing its carbon footprint and achieving net zero emissions by 2040. In addition, Mastercard Incorporated (NYSE:MA) is developing innovative solutions that integrate its customers, partners, and consumers of climate action. Mastercard Incorporated (NYSE:MA) has a market capitalization of $326.21 billion as of November 12.
11. The Procter & Gamble Company (NYSE:PG)
Market Capitalization as of November 12: $334.06 billion
Number of Hedge Fund Holders: 71
The Procter & Gamble Company (NYSE:PG) has an ambitious goal of 2030 where 100% of its packaging can be recycled or reused by the end of the decade. The Procter & Gamble Company (NYSE:PG) also hopes to use 100% renewable electricity by that year and cut GHG emissions in half at P&G sites. As one of the leading consumer staples companies, The Procter & Gamble Company (NYSE: PG ) making its products more sustainable and producing less waste can be good for the world. As of November 12, The Procter & Gamble Company (NYSE:PG) ranks #11 on our list of the 15 Largest ESG Companies in the World with a market capitalization of $334.06 billion.
10. Eli Lilly and Company (NYSE:LLY)
Market Capitalization as of November 12: $334.75 billion
Number of Hedge Fund Holders: 70
Eli Lilly and Company (NYSE:LLY) is an ESG leader awarded to companies that increase access to medicines that help improve lives and communities. Eli Lilly and Company (NYSE:LLY) is reducing its impact on the environment and also empowering a diverse workforce. As of 11/12, Eli Lilly and Company (NYSE:LLY) has a market capitalization of $334.75 billion.
9. JPMorgan Chase & Co. (NYSE:JPM)
Market Capitalization as of November 12: $396.86 billion
Number of Hedge Fund Holders: 104
JPMorgan Chase & Co. (NYSE:JPM) aims to “finance and facilitate more than $2.5 trillion over 10 years to help address climate change and contribute to sustainable development.” If the efforts to maintain JPMorgan Chase & Co. (NYSE:JPM) sustainably, the world could be a better place with less carbon emissions and more social equality. JPMorgan Chase & Co. (NYSE:JPM) has a market capitalization of $396.86 billion.
8. NVIDIA Corporation (NASDAQ:NVDA)
Market Capitalization as of November 12: $406.54 billion
Number of Hedge Fund Holders: 84
NVIDIA Corporation (NASDAQ:NVDA) is an ESG leader because it plans to purchase or generate enough renewable energy to meet 100% of its global electricity use. Additionally, “NVIDIA GPUs are typically 20x more energy efficient for some AI and HPC workloads than CPUs.” As of 11/12, NVIDIA Corporation (NASDAQ:NVDA) has a market capitalization of over $406 billion. Out of 895 hedge funds in our database, 84 also owned shares of NVIDIA Corporation (NASDAQ:NVDA) at the end of Q2 2022.
7. Visa Inc. (NYSE:V)
Market Capitalization as of November 12: $424.11 billion
Number of Hedge Fund Holders: 166
Visa Inc. (NYSE:V) has committed to achieving net zero emissions by 2040, a time frame that is at least a decade ahead of the Paris Climate Agreement. The company has achieved carbon neutrality in its operations starting in 2020 with its transition to 100% renewable energy. In addition, Visa Inc. (NYSE:V) is focusing on energy efficiency for its data centers. Until 11/12, Visa Inc. (NYSE:V) ranks #7 on our list of the 15 Largest ESG Companies in the World with a market capitalization of $424.11 billion. 166 hedge funds in our database are long Visa Inc. (NYSE:V) at the end of Q2 2022, making it one of the most widely held stocks among elite institutions.
6. UnitedHealth Group Inc. (NYSE: UNH)
Market Capitalization as of November 12: $487.80 billion
Number of Hedge Fund Holders: 91
UnitedHealth Group Inc. (NYSE:UNH) has a goal of achieving operational net zero emissions by 2035 and the company has also committed $100 million to create a new health workforce diversity program and train 10,000 clinical professionals by 2033. Additionally, UnitedHealth Group Inc. (NYSE:UNH) aims to serve the community by helping to build a modern high performing health system. As of November 12, UnitedHealth Group Inc. (NYSE:UNH) has a market capitalization of $487.80 billion.
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Disclosure: None. 15 Largest ESG Companies in the World originally published on Insider Monkey.
