Investors active in ESG investing consider a company's corporate values and environmental practices. But they're also seeking to buy the best ESG stocks, those that make solid returns. Thus IBD evaluates companies' ESG scores, as well as technical and fundamental stock ratings, when creating its 100 Best ESG Companies list.
The tables below highlight IBD's best ESG stocks in eight industry categories, including Apple, Worthington Industries and First Solar. These companies rank in the top 10 on our 2022 100 Best ESG Companies list, and each company took the top slot in one of our eight ESG industry categories. Other best ESG stocks that top our category lists and made the top 10 on our 100 Best ESG Companies list include Texas Instruments, Stepan, and Merck.
In the rough and tumble stock market of 2022, the top companies on our list stand strong. They maintained their commitment to ESG in a punishing economic environment, and they still delivered notable financial performance when compared to other companies.
Best ESG Stocks: How IBD Created Its Lists
To determine the 2022 100 Best ESG Companies list, we started with companies' environmental, social and governance (ESG) sustainability scores created on Aug. 24 by Dow Jones Newswires, an IBD affiliate. The scored list numbered 2,208 U.S.-traded companies. On Aug. 31, IBD then cut the list to 1,693 companies, removing nonpublic companies and companies with stock prices below $10 a share. We also removed any companies that lacked sufficient data to create an IBD Composite rating.
IBD further qualified the list by cutting it to the top 15% of the 1,693, using their ESG scores. Then, we selected the 100 with the highest IBD Composite Rating — all with scores of 81 or better. 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.
2022's Best ESG Stocks In Eight Categories
To identify category leaders, IBD editors grouped the 100 companies into broad business categories.
The three companies with the highest ESG scores in each category are recognized as our ESG investing leaders; investors may choose to study them for their own lists of best ESG stocks. For current technical stock information and charts on any of these companies, visit IBD's Stock Checkup page.
No leaders were named in categories with five or fewer companies on the 2022 100 Best ESG Companies list.
- See The 2022 100 Best ESG Companies List
- Read Our Comprehensive ESG Overview Story
- Read A Q&A With ESG Expert Ricardo Aceves
- View Our Full ESG Investing Special Report
Industrials
| Rank | Company | Symbol | ESG Score |
|---|---|---|---|
| 1 | Worthington Industries | WOR | 75.82 |
| 2 | Packaging Corp. of America | PKG | 67.83 |
| 3 | Avery Dennison | AVY | 65.43 |
Technology
| Rank | Company | Symbol | ESG Score |
|---|---|---|---|
| 1 | Apple | AAPL | 72.36 |
| 2 | CommScope | COMM | 67.40 |
| 3 | IBM | IBM | 67.38 |
Energy
| Rank | Company | Symbol | ESG Score |
|---|---|---|---|
| 1 | First Solar | FSLR | 71.79 |
| 2 | Phillips 66 | PSX | 71.72 |
| 3 | Cheniere Energy | LNG | 70.64 |
Electronics
| Rank | Company | Symbol | ESG Score |
|---|---|---|---|
| 1 | Texas Instruments | TXN | 72.63 |
| 2 | Keysight Technologies | KEYS | 66.92 |
| 3 | Analog Devices | ADI | 66.19 |
Chemicals
| Rank | Company | Symbol | ESG Score |
|---|---|---|---|
| 1 | Stepan | SCL | 71.55 |
| 2 | Air Products and Chemicals | APD | 68.90 |
| 3 | Cabot | CBT | 67.89 |
Medical
| Rank | Company | Symbol | ESG Score |
|---|---|---|---|
| 1 | Merck | MRK | 70.98 |
| 2 | Thermo Fisher Scientific | TMO | 67.15 |
| 3 | Eli Lilly | LLY | 64.23 |
Utilities
| Rank | Company | Symbol | ESG Score |
|---|---|---|---|
| 1 | Sempra | SRE | 69.84 |
| 2 | Exelon | EXC | 69.44 |
| 3 | Dominion Energy | D | 68.27 |
Consumer Staples
| Rank | Company | Symbol | ESG Score |
|---|---|---|---|
| 1 | Coca-Cola | KO | 67.29 |
| 2 | PepsiCo | PEP | 65.48 |
| 3 | Mondelez International | MDLZ | 64.92 |
Follow Kathleen Doler, IBD's Special Reports Editor, on Twitter @kathleendoler
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