15 Top-Rated ESG Stocks To Consider in 2022

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15 Top-Rated ESG
Stocks to Consider in
2022
Contact – “+1 646 701 0092”

The ongoing boom in ESG investing is proof that corporations can


grow without compromising their environmental, social, and
governance, or ESG values.

In the last two years, investments in sustainable stocks have


surpassed entire S&P indices. And the boom is expected to
continue in 2022. Which companies will top the charts? Companies
that create value for stakeholders, not just shareholders.
Companies that create safe working conditions, promote diversity
and inclusion (D&I), hire and pay fairly, and support local
communities. In other words, companies that have high standards
for corporate behavior.

So, which companies are those?

Here are the 15 top-rated ESG stocks to consider in 2022.


• American Water Works Company

• Microsoft

• Kering

• Nvidia

• Neste

• Cisco Systems

• Schneider Electric

• McCormick & Company


Contact – “+1 646 701 0092”

• Stantec

• Hewlett-Packard

• Metso Outotec 

• Verizon

• Autodesk

• Banco do Brasil 

• VF Corporation 

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Fighting Climate Change

15 Top-Rated ESG Stocks to Consider in


2022
1. American Water Works Company
American Water Works Company is a top-rated sustainable
corporation because of its first-rate leadership and
transparency. The US-based company, founded in 1886, employs
over 6,800 employees, and is the world’s largest publicly traded
water and wastewater utility company.
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Which companies will top the charts? Companies that create value for
stakeholders, not just shareholders.

Despite serving 15 million people in 46 states, the corporation


saves 12.5 billion liters of water every year thanks to its efficient
systems. It has also committed to a 40% reduction in greenhouse
gas emissions by 2025. 

According to its president and CEO, Walter Lynch, providing a


consistent supply of safe, clean, and affordable water
to their customers, as well as treating their wastewater, is just one
part of their commitment. There are many other initiatives to
improve the company’s sustainability and have a greater impact
on society.

2. Microsoft 
Microsoft is one of history’s most valuable companies. It is the
maker of Windows—the world’s most popular operating system.
However, Microsoft also designs software for servers and
manufactures its own machines. It has also heavily invested in
cloud computing technology, machine learning, and artificial
intelligence. Microsoft understands that its footprint is large, and
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has therefore already managed to achieve carbon neutrality,


operationally.

Next, it has committed to achieving carbon neutrality across its


entire value chain within the next decade. Then, by 2050, Microsoft
will offset the emissions it generated since its inception in 1975.
Besides doing good for the environment, Microsoft is also
operationally transparent. A big player in AI, it also happens to
heavily invest in AI research, especially the ethics of using it.

Read more: Top AI Stocks to Watch Out for in 2022


3. Kering
Kering maintained its strong position when evaluated against 24
quantitative KPIs, including resource management, people
management, financial management, clean revenue, investment,
and supplier performance. Transparency and sustainability are
advocated at every operational level, from the Board of Directors
to low-level managers.

According to Conservation International


CEO, Dr. M Sanjayan, Kering’s commitment to protect and conserve
the environment on which it relies is a huge leap for the fashion
industry. It offers a gateway for the industry to influence its
customers and help reimagine what fashion and luxury represent.
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Microsoft understands that its footprint is large, and has therefore already
managed to achieve carbon neutrality, operationally.

4. Nvidia 
Nvidia is one of the world’s largest manufacturers of
semiconductor chips. It is one of the world’s leading designers of
graphics processing units (GPUs) and system on chip units (SOCs)
for the gaming, mobile, automotive, and many other industries.

As a manufacturer and distributor of semiconductor chips at a


world-spanning scale, Nvidia is accountable for a lot. It mines
materials. Its factories and workstations are power- and water-
intensive. However, Nvidia has not shied away from the
responsibility. It is, in fact, renowned for its sustainability practices.

Read more: Top AI Trends to Watch Out for in 2022


Nvidia operates at power efficiencies as high as 35%. By 2025, it
has committed to increasing its renewable energy consumption to
65%. The manufacturer is also 100% Responsible Minerals
Assurance Process-compliant.
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5. Neste 
Neste is a global leader in sustainability, renowned for its
renewable diesel, sustainable aviation fuel, chemical recycling,
plastic waste management, and innovation in refining raw
materials into renewable fuels. The company has climbed ranks in
recent years, and is on the Corporate Knights Global 100 Index for
the 15th year in a row—far longer than any other global energy
firm.  

According to Peter Vanacker, Neste President and CEO, the


company’s goal of “making the world a better place for the
coming generations motivates them to strive for greater heights
every day. The CEO also acknowledged that several businesses are
now constantly upgrading their sustainability initiatives, which is
making it increasingly challenging to make the list each year. “It is
encouraging to see more businesses actively incorporating
sustainability into their operations,” he remarked. 

6. Cisco Systems
Cisco is one of the world’s leading developers and manufacturers
of networking hardware, software, and telecommunication
equipment. It also happens to be one of the world’s most
sustainable organizations.
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Neste’s goal of “making the world a better place” for the coming generations
motivates them to strive for greater heights every day.

It is energy-efficient and sustainable across its entire value chain,


from mining and sourcing materials, designing and
manufacturing products, and consuming electricity to promoting
fair hiring and securing data. Cisco claims that 80% of its
electricity, operationally, is clean, and has committed to going
carbon neutral, entirely across its value chain, by 2030.

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7. Schneider Electric 
Schneider Electric has often been recognized as the world’s most
sustainable company. The European energy and
automation giant is renowned for its relentless commitment
to solving ESG challenges with help of ESG consulting firms.

Read more: Top 4 Skills That AI Won’t Replace


Schneider Electric Chair and CEO, Jean-Pascal Tricoire, stated that
the foundation of their strategy has always been to establish a
business and organization that is sustainable—an organization
that has always been committed to elevating ESG. In the last
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decade, the company has continued to set higher standards


for itself as well as its customers and partners.

8. McCormick & Company


McCormick & Company is a world leader in manufacturing,
marketing, and distributing seasonings. Since McCormick is a
thriving food company, its value chain virtually spans the globe.
The company sources over 2500 products from over 85 countries.
But despite having a value chain so long and complex,
its sustainability initiatives remain top-notch.

McCormick has partnered with organizations like the World Wildlife


Fund (WWF), the Rainforest Alliance, and the Sustainable Trade to
support poor communities, empower women, and curb labor
exploitation. 

9. Stantec 
Stantec is one of the world’s most environmentally conscious
firms. Half of the company’s overall ESG score can be attributed to
its clean earnings and its clean investments, which mainly lie in
commodities and services with a proven environmental and social
impact. 
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“But despite having a value chain so long and complex, its sustainability initiatives
remain top-notch.”

Stantec President and CEO, Gord Johnston, has stated that


their outstanding track record on sustainability is the product
of the organization’s deep commitment and excellent leadership
across their worldwide operation. The CEO has added that
Stantec’s teams are striving to improve sustainability in their own
operations, but also to assist clients in setting and achieving their
own sustainability goals.

10. Hewlett-Packard
Hewlett-Packard is one of the world’s most prominent IT hardware
and services manufacturers. The company is most recognized for
its computers and laptops. In fact, between 2007 and 2013, it was
reportedly the world’s leading manufacturer of PCs. But the IT
pioneer also manufactures printers, scanners, and cameras.

Throughout its value chain involving materials sourced from


around the world, Hewlett-Packard has managed to keep over 1.5
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million pounds of plastic out of the world’s oceans and recycle


over 875 million ink cartridges. In fact, the company is the world’s
number one recycler of printer supply.

By 2025, HP has committed to reducing single-use plastic in


packaging by nearly 80%. It also collaborates with non-profit
organizations worldwide, supporting education, technology,
healthcare, sanitation, and water and waste management
projects.

Read more: Thinking Out Cloud: Qualitative Investment Research


Will Take Off in 2022. 3 Talking Points
11. Metso Outotec 
Metso Outotec, a global leader in sustainable technology and
services, caters to recycling and aggregates and mineral
processing industries. In 2021, it ranked 8th on the Global 100 Index. 

Metso Outotec’s Senior Vice President of Business


Development, Piia Karhu, has stated that for its
aggregates and metals and minerals industry
customers, their focus is on producing products that are
sustainable across their entire value chains. They expect to
achieve this by driving sustainable innovation, together, by
collaborating with their stakeholders, which include their
employees, partners, customers, and communities across the
globe. 
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By 2025, HP has committed to reducing single-use plastic in packaging by nearly


80%.

12. Verizon
Verizon is a leading provider of communication, entertainment,
and information products and services. Like Cisco and other
technology giants on the list, Verizon is making strides in its
sustainability projects. By 2025, it has committed to generating
50% of its electricity from renewable sources. By 2035, it has
committed to becoming carbon-neutral in Scope 1 and Scope 2
emissions.

Read more: “51% Rely on AI”: Marketing Insights and Challenges


in 2022
13. Autodesk 
Autodesk creates software for the engineering, construction,
architecture, education, manufacturing, and entertainment
industries. The leader in 3D design uses highly efficient data
centers and creates cloud computing software that enables
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companies to share data and collaborate seamlessly. Let us not


forget that half of its directors are women.

14. Banco do Brasil 


Banco do Brasil, the largest bank in Brazil and Latin America by
assets, is also one of the world’s most sustainable
businesses. The bank, founded more than two centuries ago, has
committed to be inclusive and improve society digitally by offering
free internet access to underserved and underprivileged
communities, and bettering Brazil’s educational and financial
prospects by supporting free education and funding local
entrepreneurs. 

15. VF Corporation 
VF Corporation is one of the world’s leading apparel, footwear, and
accessories companies. VF has committed to shifting entirely to
renewables by 2025, operationally.

Read more: Top ESG Investing Trends to Watch Out for in 2022
Further, it has committed to decarbonizing across its entire value
chain by 2030. The company has also committed to using only
regenerative, recycled, and responsibly-sourced materials within
the next ten years.
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Contact – “+1 646 701 0092”

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