ESG remains a subject of debate with some insisting that traditional stocks are more profitable while others finding it a viable alternative for those wishing to support companies that contribute to a healthy world. However one stands on this issue, there's no question that it does provide a reasonable option for even the most conservative investor and certainly no question that the companies listed below are indeed very solid.
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TODAY'S FEATURED STOCK STORY When it comes to investing, everyone wants to make money. But in the age of geopolitical unrest and systemic wealth inequality, it's increasingly difficult for many investors to turn a blind eye to social issues.
There is an increasing movement toward prioritizing environmental, social and governance topics – or ESG, for short. These include corporate sustainability efforts like carbon neutrality, social justice and workforce diversity efforts, and representative boards that include more women and people of color at the top.
According to the Dow Jones Sustainability World Index, which utilizes S&P Global's ESG Scores, the following seven stocks all are among the top 10% of corporations globally based on ESG scores. They also are all more than $40 billion in market value, showing they can achieve these social goals at scale:
ASML Holding NV (ticker: ASML). Dutch semiconductor company ASML may not be as big of a household name in the U.S. as other chipmakers. However, it is head and shoulders above its peers when it comes to ESG metrics. By 2030, ASML aims to send zero waste from operations to landfills or incinerators – a big feat for a firm that is a manufacturer and not just a white-collar office. It also has invested heavily in a diverse global workforce, with current internal statistics citing 143 different nationalities represented on its staff thanks to diversity and inclusion efforts.
AstraZeneca PLC (AZN). U.K.-based Big Pharma giant AZN stands out as a worldwide leader in environmental, social justice and corporate governance programs. For instance, as of the beginning of this year it had reached more than 44.6 million underserved patients worldwide through its Access health care outreach program. It also has roughly 50% female representation on its board, and has already achieved a roughly 60% reduction in greenhouse gas emissions between 2015 and 2022. Those tangible steps should give investors peace of mind that management cares about more than just the bottom line.
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ESG STOCK | S&P GLOBAL ESG SCORE | TRAILING DIVIDEND YIELD* | ASML Holding NV (ticker: ASML) | 82 | 1.2% | AstraZeneca PLC (AZN) | 78 | 2.3% | Hilton Worldwide Holdings Inc. (HLT) | 64 | 0.4% | Microsoft Corp. (MSFT) | 55 | 0.9% | Toyota Motor Corp. (TM) | 43 | 2.3% | UnitedHealth Group Inc. (UNH) | 65 | 1.3% | Visa Inc. (V) | 61 | 0.8% |
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