15 Biggest ESG Companies in the World

In this article we will look at 15 of the biggest ESG companies in the world. If you want to see more of the biggest ESG companies in the world, go straight to 5 biggest ESG companies in the world.

As the rapid growth of electric vehicles shows, consumers are increasingly interested in environmental sustainability. While it may cost a little more, it’s worth it to many consumers if it helps save the environment and fight climate change.

Over the years, investors have also become more interested in sustainability rather than just putting profits first. For ESG investors, it’s worth not making as much money if it helps make the world more sustainable.

Although ESG actually originated in the 1960s as socially responsible investing, ESG investing has grown significantly in recent decades. One reason is that global warming has become a much bigger problem now than it was in the 1960s. Another reason is that ESG activists can make a much bigger difference given the internet in their calls for greater income equality or better corporate governance. With the internet, many more people are also realizing 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 assess how well a company is doing on environmental issues such as reducing carbon emissions, social issues such as how companies help their communities, and governance issues such as management diversity.

In ESG investing, an investor may choose to invest in a company that does well on ESG issues but has a slightly higher valuation than a company with similar qualities but not as good at ESG.

Given changing consumer behavior, ESG investing can also add value. McKinsey explains,

While there can be wide variations in practice, including customers refusing to pay even 1 percent more, we found that over 70 percent of consumers surveyed for purchases across multiple industries, including the automotive, construction, electronics and packaging categories, said that will pay an additional 5 percent for a green product if it meets the same performance standards as a non-green alternative. In another study, nearly half (44 percent) of the companies we surveyed identified business and growth opportunities as the impetus for starting their sustainability programs. The payouts are real. When Unilever developed Sunlight, a dishwashing liquid brand that uses far less water than its other brands, sales of Sunlight and other Unilever water-saving products outpaced category growth by more than 20 percent in a number of water-scarce markets on water. And Finland’s Neste, founded as a traditional oil refining company more than 70 years ago, now generates more than two-thirds of its profits from renewable fuels and sustainability-related products.

Also Read :  Style Conversational Week 1515: We har the world

2022 year

Although many ESG companies have growth potential, 2022 was a difficult year for the market. To combat inflation, the Federal Reserve has raised interest rates six times this year alone, and many analysts believe the central bank could continue to raise them further.

While October inflation was lower than expected and the market recently rallied, there is still uncertainty and potential downside if economic data misses expectations.

As a result, it might be a good idea for long-term investors to hold a well-diversified portfolio of stocks in many different sectors.

5 most diverse countries in the world

5 most diverse countries in the world

Methodology

For our list of the 15 largest ESG companies in the world, we took the 15 largest holdings from the Vanguard ESG US Stock ETF (ESGV) by % of the fund and re-ranked them based on their market capitalization as of November 12th. We excluded Alphabet Inc Class A (GOOGL) shares because we already included Alphabet on the list once.

We included the number of hedge fund owners in our database that held shares in the same stock at the end of Q2 2022.

15 biggest 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 delivers positive impacts on patients and society through its scientific discoveries in medicine. Pfizer Inc. (NYSE:PFE) explains about its 2021: “Never before has our impact been greater when it comes to the number of patients treated or vaccinated with a Pfizer product. We have reached approximately 1.4 billion patients with our Medicines and Vaccines – approximately one in every six people on Earth. Even if we separate out our COVID-19 breakthrough products, we have treated about 424 million patients globally. As of 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 a leader in ESG because its employees have volunteered millions of hours to help the community. Bank of America Corporation (NYSE:BAC) also has a goal of being carbon neutral by 2030 and significantly reducing its waste by that year. As of 11/12, Bank of America Corporation (NYSE:BAC) had a market capitalization of $308.14 billion.

Also Read :  Bombed, not beaten: Ukraine's capital flips to survival mode

13. The Home Depot, Inc. (NYSE:HD)

Market capitalization as of November 12: $322.41 billion

Number of hedge fund owners: 80

Home Depot, Inc. (NYSE:HD) has made its business more sustainable by cutting electricity consumption in its U.S. stores by about half since 2010. Home Depot, Inc. (NYSE:HD) is also making progress toward its goal of producing or sourcing 100% renewable electricity 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) aims to reduce its carbon footprint and achieve net zero emissions by 2040. Furthermore, Mastercard Incorporated (NYSE:MA) creates innovative solutions that unite its customers, partners and consumers in 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 for 2030 where 100% of its packaging will be recyclable or reusable by the end of the decade. The Procter & Gamble Company (NYSE:PG) also hopes to use 100% renewable electricity by that year and cut greenhouse gas emissions in half at P&G locations. As one of the leading consumer products companies, Procter & Gamble (NYSE:PG) making its products more sustainable and producing less waste would be good for the world. As of November 12, The Procter & Gamble Company (NYSE:PG) ranked #11 on our list of the 15 largest ESG companies in the world with a market capitalization of $334.06 billion.

10. Eli Lilly & 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 as the company increases access to medicines that help improve lives and communities. Eli Lilly and Company (NYSE:LLY) minimizes its environmental impact and empowers a diverse workforce. As of 11/12, Eli Lilly & 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

Also Read :  Zaporizhzhia: Ukraine claims some Russian units are withdrawing from region

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 JPMorgan Chase & Co.’s sustainability efforts (NYSE:JPM) are doing well, 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 on November 12: $406.54 billion

Number of hedge fund holders: 84

NVIDIA Corporation (NASDAQ:NVDA) is an ESG leader as it plans to purchase or generate enough renewable energy to meet 100% of its global electricity use. Furthermore, “NVIDIA GPUs are typically 20x more energy efficient for certain AI and HPC workloads than CPUs.” As of 11/12, NVIDIA Corporation (NASDAQ:NVDA) has a market capitalization of over $406 billion. Of the 895 hedge funds in our database, 84 also owned shares of NVIDIA Corporation (NASDAQ:NVDA) at the end of 2022Q2.

7. Visa Inc. (NYSE:V)

Market capitalization as of November 12: $424.11 billion

Number of hedge fund holders: 166

Visa Inc. (NYSE:V) is committed to achieving net zero emissions by 2040, a timeline that is at least a decade ahead of the Paris climate agreement. The company has already achieved carbon neutrality throughout its operations starting in 2020 with its transition to 100% renewable energy. Furthermore, Visa Inc. (NYSE:V) is focusing on energy efficiency for its data centers. As of 11/12, Visa Inc. (NYSE:V) ranked #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 were 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) aims to achieve net zero operational 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. Furthermore, UnitedHealth Group Inc. (NYSE:UNH) aims to serve the community by helping to build a modern, high-performing healthcare system. As of November 12, UnitedHealth Group Inc. (NYSE:UNH) has a market capitalization of $487.80 billion.

Click to continue reading and see the 5 biggest ESG companies in the world.

Suggested Articles:

Disclosure: None. 15 biggest ESG companies in the world originally published on Insider Monkey.

Source

Leave a Reply

Your email address will not be published.

Related Articles

Back to top button