15 Biggest ESG Companies in the World

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

As the rapid growth of electric vehicles shows, consumers are increasingly interested in environmental sustainability. Although it may cost a little more, it is worth it for 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 prioritizing profits. For ESG investors, it’s worth not making so much profit 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 issue today 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 more income equality or better corporate governance. With the internet, many more people are also realizing that our world is not sustainable in its current trajectory unless we help make it better.

ESG

ESG stands for environment, social and governance. In ESG investing, investors assess a company’s performance in terms of environmental issues such as reducing its carbon emissions, social issues such as how companies help their communities, and governance issues such as leadership 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 does not perform as well on ESG issues. ESG.

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

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

2022

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

Although October inflation was weaker than expected and the market has rallied recently, there is still uncertainty and downside potential if economic data fails to meet expectations.

As a result, it might make sense for long-term investors to own a well-diversified portfolio of stocks across 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 Vanguard ESG US Stock ETF (ESGV) stocks by % of fund and re-ranked them based on their market capitalization as of November 12. We have excluded Alphabet Inc Class A Stocks (GOOGL) since we have already included Alphabet once in the list.

We have included in our database the number of hedge fund holders who held shares of the same security at the end of the second quarter of 2022.

15 largest ESG companies in the world

15. Pfizer Inc. (NYSE: PFE)

Market cap as of November 12: $267.19 billion

Number of hedge fund holders: 70

Pfizer Inc. (NYSE: PFE) is a company that positively impacts patients and society through scientific breakthroughs in medicines. Pfizer Inc. (NYSE: PFE) explains for its 2021 year: “Never before has our impact been greater in terms of the number of patients treated or vaccinated with a Pfizer product. We have reached about 1.4 billion patients with our medicines and vaccines – about one in six people on Earth. Even when we separate our breakthrough COVID-19 products, we have treated approximately 424 million patients worldwide. As of November 12, Pfizer Inc. (NYSE: PFE) had 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 dedicated millions of hours to helping the community. Bank of America Corporation (NYSE:BAC) also has a 2030 goal of being carbon neutral and significantly reducing its waste by that year. As of 12/11, Bank of America Corporation (NYSE:BAC) had a market cap of $308.14 billion.

13. 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 by roughly halving electricity consumption in U.S. stores since 2010. The Home Depot, Inc. (NYSE:HD) is also making progress toward its goal of produce or source 100% renewable electricity by 2030. As of November 12, The Home Depot, Inc. (NYSE: HD) had 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. In addition, 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

Procter & Gamble (NYSE: PG) has an ambitious 2030 goal where 100% of its packaging will be recyclable or reusable by the end of the decade. Procter & Gamble (NYSE: PG) also hopes to use 100% renewable electricity by that year and halve GHG emissions 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 would be good for the world. As of November 12, The Procter & Gamble Company (NYSE: PG) ranks 11th on our list of the world’s 15 largest ESG companies 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 as the company improves access to medicines that help improve lives and communities. Eli Lilly and Company (NYSE: LLY) minimizes its impact on the environment and also empowers a diverse workforce. As of 12/11, Eli Lilly and Company (NYSE:LLY) had a market cap 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 “fund and facilitate more than $2.5 trillion over 10 years to address climate change and contribute to sustainable development.” If JPMorgan Chase & Co.’s (NYSE:JPM) sustainability efforts go well, the world could be a better place with lower 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 cover 100% of its global electricity consumption. Additionally, “NVIDIA GPUs are typically 20x more power efficient for certain AI and HPC workloads than CPUs.” As of 12/11, NVIDIA Corporation (NASDAQ:NVDA) had a market cap of over $406 billion. Of the 895 hedge funds in our database, 84 also held 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 pledged to achieve net zero emissions by 2040, a deadline that is at least a decade ahead of the Paris Climate Accord. The company has already achieved carbon neutrality across all of its operations from 2020 with its transition to 100% renewable energy. Additionally, Visa Inc. (NYSE:V) is focusing on energy efficiency in its data centers. As of 12/11, Visa Inc. (NYSE:V) ranks 7th on our list of the world’s 15 largest ESG companies with a market capitalization of $424.11 billion. 166 hedge funds in our database were long on 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 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 empower the community by helping to build a modern, high-performing healthcare system. As of November 12, UnitedHealth Group Inc. (NYSE: UNH) had a market capitalization of $487.80 billion.

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Disclosure: none. 15 largest ESG companies in the world is originally published on Insider Monkey.

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