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:

• Microsoft: This 'Magnificent Seven' Stock Also Is The Best ESG Company
• At Applied Materials, Cutting Carbon Emissions Is A Team Effort
• Woodward's Focus On Energy Pays Off with High ESG Score, Strong Stock Performance

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.

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