Top Eco-Friendly Stocks

Ethical & Sustainable Investing News to Profit By!

Top Eco-Friendly Stocks are from the Corporate Knights rankings. Plus, Reddit’s best ethical companies and an article listing Shariah-compliant stocks.

By Ron Robins, MBA

Podcast: Top Eco-Friendly Stocks

Transcript & Links, Episode 137, September 6, 2024

Hello, Ron Robins here. Welcome to this podcast episode 137 published September 6, 2024, titled “Top Eco-Friendly Stocks.” It’s presented by Investing for the Soul. Investingforthesoul.com is your site for vital global ethical and sustainable investing mentoring, news, commentary, information, and resources.

Now, remember that you can find a full transcript and links to content – including stock symbols and bonus material – on this episode’s podcast page at investingforthesoul.com/podcasts.

Also, a reminder. I do not evaluate any of the stocks or funds mentioned in these podcasts, and I don’t receive any compensation from anyone covered in these podcasts. Furthermore, I will reveal any personal investments I have in the investments mentioned herein.

Additionally, quotes about individual companies are brief. Please go to this podcast's webpage for links to the articles for more company and stock information.

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7 Best Ethical Companies To Invest In According to Reddit

The first article I’m reviewing is titled 7 Best Ethical Companies To Invest In According to Reddit. It’s by Affan Mir and found on insidermonkey.com. Here are some quotes.

“Our Methodology

The companies are listed in ascending order of the number of hedge fund holders as of the second quarter of 2024. The hedge fund data was taken from our database of over 900 elite hedge funds…

Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds.

7. HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI)

Number of Hedge Fund Holders: 16

The company invests in behind-the-meter (BTM) building or facility-specific distributed energy projects, which are tailored to reduce energy consumption or costs for specific buildings or facilities.

6. Ecolab Inc. (NYSE:ECL)

Hedge Fund Holders: 42

Ecolab Inc. … initially, the company focused on innovative cleaning products but has since become a major player in the water, hygiene, and energy sectors. The company serves various industries, including food processing, healthcare, hospitality, and manufacturing, by offering technology and services that ensure water quality and safety…

In 2024, it was recognized as one of the World’s Most Ethical Companies by Ethisphere for the 18th consecutive year.

5. Waste Management, Inc. (NYSE:WM)

Hedge Fund Holders: 49

Waste Management, Inc. … Over the years, the company has evolved into a comprehensive waste management company with a vast operational footprint.

4. First Solar, Inc. (NASDAQ:FSLR)

Hedge Fund Holders: 66

First Solar is an American company in the solar energy industry that specializes in manufacturing solar panels and developing utility-scale photovoltaic (PV) power plants.

3. Costco Wholesale Corporation (NASDAQ:COST)

Hedge Fund Holders: 71

Costco Wholesale Corporation is a warehouse club that operates on a membership basis, offering a wide range of products.

2. NextEra Energy, Inc. (NYSE:NEE)

Hedge Fund Holders: 73

NextEra Energy, Inc. … company operates a diverse portfolio through its subsidiaries, which include Florida Power & Light (FPL), NextEra Energy Resources (NEER), and NextEra Energy Partners.

1. NVIDIA Corporation (NASDAQ:NVDA)

Hedge Fund Holders: 179

NVIDIA Corporation is a California-based prominent tech company… recognized for its groundbreaking advancements in graphics processing units (GPUs) and AI.”

End quotes.

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Top 25 Eco-Friendly Companies in 2024

Now this next article should interest most of you. It’s titled Top 25 Eco-Friendly Companies in 2024. It’s by Meerub Anjum and found on finance.yahoo.com. Due to my time restrictions, the 25 companies are covered briefly. Go to the link on this episode’s podcast page for the full article. Here are my brief quotes.

“Methodology

To compile our list of the top 25 eco-friendly companies in 2024, we utilized the sustainable investment ratio data for the global 100 companies from Corporate Knights. We then used the purchasing power parity revenue of companies as of 2023 to calculate the absolute sustainable revenue of companies. Finally, we ranked the top 25 eco-friendly companies in 2024 in ascending order of their absolute sustainable revenue.

At Insider Monkey we are obsessed with the stocks that hedge funds pile into… Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

25. Henkel AG & Co. (OTC:HENOF)

In 2023, over 20% of its revenue was from sustainable products or services.

24. Risen Energy Co. Ltd. (SHE:300118)

In 2023, Risen Energy Co Ltd generated 100% of its revenue from sustainable products and services.

23. Yadea Group Holdings Ltd. (OTC:YADGF)

is an investment holding company engaged in the manufacturing and sale of two-wheeled electric vehicles and related accessories in China.

22. Kering SA (OTC:PPRUF)

in 2024… it generated 26.5% of its revenue from sustainable products in 2023.

21. Nordex SE (OTC:NRXXY)

The company is involved in the manufacturing and distribution of onshore wind turbines.

20. Hewlett Packard Enterprise Company (NYSE:HPE)

is one of the most sustainable companies, boasting a sustainable revenue of 33.1%.

19. Li Auto Inc. (NASDAQ:LI)

In 2023, Li Auto Inc generated 100% of its revenue from sustainable products.

18. Ricoh Company, Ltd. (OTC:RICOY)

Ricoh Company, Ltd.'s sustainable revenue was 50.8% of its total revenue in 2023.

17. NIO Inc. (NYSE:NIO)

is involved in the manufacturing and sale of smart electric vehicles in China.

16. Ørsted A/S (OTC:DNNGY)

65% of its revenue was from sustainable products and services in 2023.

15. SAP SE (NYSE:SAP)

SAP SE generated nearly 30% of its revenue from sustainable products and services.

14. Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC)

In 2023, 46.8% of its revenue was generated from sustainable services and products.

13. Banco do Brasil S.A. (OTC:BDORY)

generated 28.6% of its revenue from sustainable products and services in 2023.

12. Neste Oyj (OTC:NTOIY)

Its renewable products include renewable diesel, sustainable aviation fuel, renewable solvents, and feedstock for bioplastics.

11. Sanofi (NASDAQ:SNY)

In 2023, 27.2% of its revenue was from eco-friendly products and services.

10. Alstom SA

is involved in the manufacturing of monorails, light rails, metros, commuter trains, regional trains, high-speed trains, and locomotives.

9. Samsung SDI Co. Ltd. (KRX:006400)

provides lithium-ion batteries used in smartphones, tablets, laptops, and other devices including electric bikes and scooters.

8. Cisco Systems, Inc. (NASDAQ:CSCO)

aims to achieve net zero emissions by 2040 and also incorporate circularity in 100% of its new products and packaging by 2025.

7. Vestas Wind Systems (OTC:VWDRY)

100% of its revenue is generated from eco-friendly products.

6. Bank of China Limited (OTC:BACHF)

Nearly 17% of its revenue, which amounts to $25.9 billion, was from sustainable sources in 2023.

5. XPeng Inc. (NYSE:XPEV)

100% of its revenue is generated from sustainable products and services.

4. Schneider Electric S.E. (OTC:SBGSY)

is involved in the production of inverters, solar panels, solar equipment, wind farm microgrids, power metering systems, and smart monitoring solutions, among others.

3. HP Inc. (NYSE:HPQ)

reduced its Scope 1 and 2 emissions by 62% in 2023.

2. Tesla, Inc. (NASDAQ:TSLA)

In 2023, 100% of its revenue was generated from sustainable products and services.

1. Apple Inc. (NASDAQ:AAPL)

In 2023, it generated nearly 70% of its revenue from sustainable products and services.”

End quotes.

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Top 10 Shariah Compliant Stocks by Market Cap

Many ethical investors might not know that Shariah investing has similarities to ethical investing. This article briefly explains Shariah-based investing and the ethical stocks favored by the article’s authors. It’s titled Top 10 Shariah Compliant Stocks by Market Cap. Author(s) not mentioned, but found on amalinvest.com. Here are some quotes.

“Islamic finance has grown significantly in recent years, with more investors seeking stocks that align with Shariah principles. Let's explore the top 10 Shariah compliant stocks by market capitalization, examining what makes them attractive to ethical investors and how they stack up in the global market…

Shariah law prohibits investment in companies involved in certain activities, such as alcohol, gambling, pork products, and conventional financial services. Additionally, there are financial ratios that companies must meet to be considered compliant.

Compliance vs. Halal

It's crucial to note that ‘Shariah compliant’ doesn't necessarily mean ‘halal.’ Compliant companies may still have some activities that aren't permissible under Shariah law, but they don't exceed certain thresholds that would make them impermissible for investment.

Now, let's examine our top 10 list:

1. Apple Inc. (AAPL)

• Compliance: Halal

The tech giant Apple leads our list with an impressive market cap of $3.45 trillion.

2. NVIDIA Corporation (NVDA)

• Compliance: Halal

NVIDIA, a leader in GPU technology and AI computing, comes in second with a market cap of $3.11 trillion. Its focus on cutting-edge technology and strong financial position contribute to its Shariah compliant status.

3. Alphabet Inc. (GOOGL)

• Compliance: Doubtful

Google's parent company, Alphabet, holds the third spot. Despite its massive market cap, its compliance status is marked as doubtful. This could be due to its diverse range of services, which may include activities not fully aligned with Shariah principles.

Bottom of Form

4. Amazon.com Inc. (AMZN)

• Compliance: Doubtful

E-commerce giant Amazon is fourth on our list, but also carries a doubtful compliance status. This might be related to its involvement in streaming services that could include content not aligned with Shariah principles, or its financial services offerings.

5. Meta Platforms Inc. (META)

• Compliance: Doubtful

Facebook's parent company, Meta, rounds out our top five. Its doubtful status could be due to concerns about content moderation and potential involvement in activities not fully aligned with Shariah law.

6. Eli Lilly and Co (LLY)

• Compliance: Halal

Eli Lilly, a pharmaceutical company, is the first non-tech firm on our list. Its focus on healthcare and strong financial position contribute to its Shariah compliant status.

7. Broadcom Inc. (AVGO)

• Compliance: Halal

Broadcom, a designer, developer, and global supplier of semiconductor devices, maintains a Shariah compliant status due to its focus on technology and solid financials.

8. Tesla Inc. (TSLA)

• Compliance: Halal

Electric vehicle manufacturer Tesla is Shariah compliant, likely due to its focus on sustainable transportation and energy solutions, as well as its financial structure.

9. Walmart Inc. (WMT)

• Compliance: Doubtful

Retail giant Walmart makes the list but with a doubtful compliance status. This could be due to the sale of products not permissible under Shariah law, such as alcohol or pork products.

10. Visa Inc. (V)

• Compliance: Halal

Rounding out our top 10 is Visa, a financial services company. Its Shariah compliant status might surprise some, but it's likely due to its business model focusing on payment processing rather than traditional banking activities.”

End quotes.

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3 Green ETFs With Promising Upside And Long-Term Potential

Now an article from Canada. It’s titled 3 Green ETFs With Promising Upside And Long-Term Potential. It’s by Pierre Raymond and seen on theglobeandmail.com. Here’s some of what Mr. Raymond says about his picks.

“1. iShare Climate Conscious & Transition MSCI USA (USCLi)

One of the key objectives of the fund is to track the performance and investment results of large and mid-cap U.S. companies that are actively contributing to the low-carbon economy transition. Overall, the fund has delivered a one-year return of 23.10%, slightly below the benchmark of 23.16%.

2. Carbon Transition U.S. Equity ETF (JCTR)

provides investors exposure to the broader U.S. market by positioning the fund to benefit from companies that invest in the low-carbon economy transition… The fund delivered one-year quarterly returns of 24.40%, similar to that of the JPMAM Carbon Transition U.S. Equity Index.

3. Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (USNZ)

which seeks to track the performance of the Solactive ISS ESG U.S. Net Zero Pathway Enhanced Index… The current one-year return is 24.44% versus 24.54% of the underlying index, and 24.56% of the S&P.”

End quotes.

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One other great article that time didn’t allow me to review here.

3 Franklin Templeton Mutual Funds for Sustainable Returns. It’s by Zacks Equity Research and was found on finance.yahoo.com.

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Ending Comment

These are my top news stories with their stock and fund tips for this podcast “Top Eco-Friendly Stocks.”

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Thank you for listening.

Now my next podcast will be September 20th.

I’ll talk to you then!

Bye for now.

© 2024 Ron Robins, Investing for the Soul