IBD’s 100 best ESG companies for 2023

When people think of ESG, the word “environment” usually leaps to mind. And that’s understandable. ESG stands for environmental, social and governance. It’s a group of nonfinancial factors that have grown increasingly important to investors, regulators and the general public. But environmental factors are only a part of the story — especially when it comes to finding the best ESG companies.

This past year, extreme weather events have elevated environmental concerns. Social challenges — diversity, human rights and workplace issues — have become more significant as employees return to the office. Consider this year’s labor actions, from the SAG-AFTRA strike to the United Auto Workers’ walkout. The UAW doesn’t oppose the shift to electric vehicles, but is concerned about the transition’s impact on workers. 

And all year long, companies have been waiting for the SEC to issue new climate disclosure rules. The implementation timelines are opaque, and litigation is almost assured. However, the new rules will place significant reporting obligations on companies and bring a sense of urgency to their ESG strategy planning.

Helping investors find the best ESG companies

The many factors that go into ESG rankings can make for surprising and confusing lists. A company may excel in one ESG dimension, such as leadership and governance, but rank poorly for its environmental efforts.

The energy transition is here. Dow Jones — IBD’s parent company — says investment managers in the U.S. will increase the percentage of ESG-related investments in their portfolios substantially in the next couple of years. By 2025, 11% to 15% of U.S. managers will put 40% of their portfolios in ESG investments.

How can investors protect their portfolio and accurately value the companies poised to profit from ESG excellence?

Finding the best ESG companies requires study. Investor’s Business Daily can help. We’ve compiled our fifth annual ESG Investing special report. Public companies that made our 2023 100 Best ESG Companies list combine high Dow Jones sustainability scores with superior IBD technical and fundamental stock ratings. They are standouts for ESG investing.

ESG investing: Best companies methodology

To build the 2023 100 Best ESG Companies list, IBD started with each company’s environmental, social and governance (ESG) sustainability score created by Dow Jones Newswires, an IBD affiliate. These scores capture a broad spectrum of information on the ESG profile of more than 6,000 global companies.

On Aug. 24, IBD asked Dow Jones for an ESG-scored list of all the U.S.-traded companies it tracks, a total of 2,067. We then cut the list to 1,559 companies on Aug. 25 by removing nonpublic companies and companies with stock prices below $10 a share. Any companies that lacked sufficient data to create an IBD Composite Rating were also removed from the list.

IBD further qualified the ESG investing list by removing those companies that did not meet or beat the S&P 500 in the past five years. 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.

RankCompanySymbolIndustryESG scoreComp RtgRS RtgEPS RtgSMR Rtg3-yr EPS growth rateROELast qtr sales % chgLast qtr EPS % chgDiv yield
1Microsoft(MSFT)Computer Software – Desktop72.76988996B18398210.80
2Applied Materials(AMAT)Electronics – Semiconductor Equipment71.71949185A2955-1-20.80
4Verisk Analytics(VRSK)Commercial Services – Market Research71.58939189A23510190.50
5Mastercard(MA)Finance – Credit Card/Payment Processing71.57958786A2215214130.50
6Caterpillar(CAT)Machinery – Construction/Mining70.66999292A354522751.90
7Marathon Petroleum(MPC)Oil & Gas – Refining/Marketing69.42849535BN.A.50-32-502.00
8Nvidia(NVDA)Electronics – Semiconductor Mfg69.4999993A25341014290.03
9Dover(DOV)Machinery – General Industrial68.65865079B1729-3-41.40
10Motorola Solutions(MSI)Telecom – Consumer Products68.54836995A13468412281.20
11Bunge(BG)Agricultural Operations68.21909093C3025-16252.30
12Sherwin-Williams(SHW)Chemicals – Paints68.17918595A5836370.80
13Dell Technologies(DELL)Computer Hardware – Peripherals67.07869840C110-100-29N.A.
14Adobe(ADBE)Computer Software – Desktop66.75989696A17451017N.A.
15Mondelez(MDLZ)Food – Confectionary66.74837088B71517172.30
16Church & Dwight(CHD)Soap & Cleaning Preparations66.4868087B32210211.10
17Meta Platforms(META)Internet – Content66.33989887B-1191131N.A.
18Air Products & Chemicals(APD)Chemicals – Specialty66.15847292A1117-5162.40
19Gartner(IT)Commercial Services – Market Research65.82856693A4630590N.A.
20Arthur J. Gallagher(AJG)Insurance – Brokers65.66988796A231920170.90
21Lam Research(LRCX)Electronics – Semiconductor Equipment65.06909371B3076-31-321.00
22TJX(TJX)Retail – Apparel/Shoes Accessories65959088A132598231.50
23Owens Corning(OC)Building – Construction Products MSC64.53969689B5028-1101.50
24Jabil(JBL)Electronics – Contract Mfg64.48919595B48482160.30
25Alphabet(GOOGL)Internet – Content64.04989390A3024717N.A.
26Deckers Outdoor(DECK)Apparel – Shoes & Related Mfg63.83969298A22311045N.A.
27Arista Networks(ANET)Computer – Networking63.37979498A39333946N.A.
28Onsemi(ON)Electronics – Semiconductor Equipment63.13849077A116440-1N.A.
29Tetra Tech(TTEK)Pollution Control62.95867096A172036190.60
30Marriott(MAR)Leisure – Lodging62.93918976A14822014261.00
31Eli Lilly(LLY)Medical – Diversified62.81989787A77328690.80
32Jacobs Solutions(J)Building – Heavy Construction62.78938082B10159-20.70
33Visa(V)Finance – Credit Card/Payment Processing62.71958591A21441290.70
34Commercial Metals(CMC)Metals – Processing & Fabrication62.54838483B6736-7-231.10
35Federal Signal(FSS)Security/Safety62.36878493B81521260.60
36Fortinet(FTNT)Computer Software – Security62.15977399A343852658N.A.
37Zoetis(ZTS)Medical – Ethical Drugs61.83908590A11516180.80
38Cadence Design Systems(CDNS)Computer Software – Design61.62959195A24431413N.A.
39Clean Harbors(CLH)Pollution Control60.47859094B66233-13N.A.
40Workday(WDAY)Computer Software – Enterprise60.46999599A22191758N.A.
41Microchip Tech(MCHP)Electronics – Semiconductor Mfg60.22835896A335417202.10
42CoStar(CSGP)Commercial Services – Market Research60.11847283B1181311N.A.
43Chipotle Mexican Grill(CMG)Retail – Restaurants59.97937998A65391436N.A.
44Prologis(PLD)Finance – Property REITs59.65875196A17896652.80
45HubSpot(HUBS)Computer Software – Specialty Enterprise59.43999699A481525205N.A.
46Booking Holdings(BKNG)Leisure – Travel Booking59.43989582A278892797N.A.
47Watts Water Technologies(WTS)Building – Construction Products/MSC59.21948293B31191110.70
48AppFolio(APPF)Computer Software – Specialty Enterprise59.14979776CN.A.025667N.A.
49American Homes 4 Rent(AMH)Finance – Property REITs58.86847783B154962.40
50Iron Mountain(IRM)Commercial Services – Document Management58.51948476A8695-44.20
51Parker-Hannifin(PH)Machinery – General Industrial58.36999296A222822181.40
52Taylor Morrison(TMHC)Building – Residential/Commercial58.33929492B58253-7N.A.
53Rockwell Automation(ROK)Electrical Power – Equipment58.31856290A124314131.50
54Martin Marietta Materials(MLM)Building Materials – Cement/Concrete58.24958797B91111410.60
55Costco Wholesale(COST)Retail – Major Discount Chains58.2918095B14302180.70
56Cintas(CTAS)Commercial Services – Outsourcing57.99967996A173810191.10
57Paychex(PAYX)Commercial Services – Outsourcing57.65865892A15457202.90
58Intuit(INTU)Computer Software – Financial57.54989397A27267170.60
59Booz Allen Hamilton(BAH)Commercial Services – Consulting57.52938596A115918301.60
60Vulcan Materials(VMC)Building Materials – Cement/Concrete57.41918777B-8108500.80
61Idexx Laboratories(IDXX)Medical – Systems/Equipment57.37887797A161051076N.A.
62Trex(TREX)Building – Construction Products/MSC57.21869464C632-8-10N.A.
63Consol Energy(CEIX)Energy – Coal57.09999779AN.A.5121403.90
64Fair Isaac(FICO)Computer Software – Financial57.08989696A3001427N.A.
65Tempur Sealy International(TPX)Household Office Furniture56.95899481B20355501.00
66Stryker(SYK)Medical – Products56.94888687A122311131.00
67Veeva Systems(VEEV)Computer Software – Medical56.87959293A22214-8N.A.
68MSA Safety(MSA)Security/Safety56.72969192A122520421.00
69Graco(GGG)Machinery – General Industrial56.17856292A17262101.20
70Regeneron Pharmaceuticals(REGN)Medical – Biotech55.91928383B1925115N.A.
71Morningstar(MORN)Commercial Services – Market Research55.82888963B-12137370.60
72Illinois Tool Works(ITW)Machinery – General Industrial55.77836678A1485292.30
73Emcor(EME)Building – Maintenance & Services55.72989697B161912480.30
74S&P Global(SPGI)Commercial Services – Market Research55.64847486A-1204110.90
75M/I Homes(MHO)Building – Residential/Commercial55.53939892B4327-3-14N.A.
76Lithia Motors(LAD)Retail – Wholesale Auto55.38938980B522612-100.60
77KB Home(KBH)Building – Residential/Commercial55.26929582B52243-161.60
78Aecom Technology(ACM)Building – Heavy Construction55.23906287B211913110.80
79Raymond James Financial(RJF)Financial – Investment Bank/Brokers55.2947494A281819151.60
80Vertex Pharmaceuticals(VRTX)Medical – Biotech55.2918189A2232148N.A.
81Terex(TEX)Machinery – Construction/Mining55.08999291A18126301201.20
82Pathward Financial(CASH)Financial – Savings & Loan54.93968598A201831890.40
83Paycom Software(PAYC)Computer Software – Enterprise54.55842898A293427290.50
84Extreme Networks(EXTR)Computer – Networking54.36979496A10114331120N.A.
85United Rentals(URI)Commercial Services – Leasing54.31969196A323528261.30
86ATI(ATI)Steel – Specialty Alloys54.3959262AN.A.3399N.A.
87Casey’s Retail(CASY)Retail – SPR/Mini markets54.3837492B1618-4-70.70
88Walmart(WMT)Retail – Major Discount Chains54.26868383B621641.40
89ITT(ITT)Machinery – General Industrial54.21979093B151714361.10
90RBC Bearings(RBC)Metals – Processing & Fabrication54.15917789A2610920N.A.
91Herc Holdings(HRI)Commercial Services – Leasing54.14927095A71332592.00
92Houlihan Lokey(HLI)Financial – Investment Bank/Brokers54858969C1521-1-192.10
93Lennox International(LII)Building – A/C & Heating Products53.99979693n.a.1703221.20
94Hawkins(HWKN)Chemicals – Basic53.83969397B27182191.10
95Paccar(PCAR)Trucks & Parts – Heavy Duty53.5959092A412424701.20
96Beazer Homes(BZH)Building – Residential/Commercial53.46919871B79279-19N.A.
97Inter Parfums(IPAR)Cosmetics/Personal Care53.39888796A642026271.80
98Broadcom(AVGO)Electronics – Semiconductor Mfg53.22939492A28708142.10
99Gulfport Energy(GPOR)Oil & Gas – US Exploration & Discovery53.21839511B2464-35-55N.A.
100Kadant(KAI)Machinery – General Industrial53.09968189B311811130.50

Sources: IBD, Dow Jones. This list includes only U.S-traded stocks priced at 10-plus and among the top-ranked companies in Dow Jones ESG scores. All data is as of 8/25/23. The 100 companies on this list are ranked by ESG score. Ties are broken by the highest IBD Composite Ratings, and then by RS Rating and EPS Rating. All stocks on the list met or beat the S&P 500 over the past five years.


The content of this webpage is not an investment advice and does not constitute any offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial circumstances.

Source: Investor’s Business Daily, Best ESG Companies 2023, Dated October 27, 2023