In this article, we discuss the top 5 ESG companies in 2022. If you want our detailed analysis of the ESG industry, go directly to Top 12 ESG Companies in 2022.
5. Bank of America Corporation (NYSE:BAC)
Bank of America Corp (NYSE:BAC) has set a goal of achieving net zero greenhouse gas (GHG) emissions by 2050. The bank achieved the net zero emission goal for Scope 1 and Scope 2 emissions in 2019. The company says that its Environmental Business Initiative will “deploy and mobilize” about $1 trillion by 2030 to hasten the shift to a low-carbon economy. Bank of America Corp (NYSE:BAC) says 100% of its electricity usage on an annual basis comes from renewable sources. The bank also claims to have spent a whopping $200 billion since 2007 in financing low-carbon and sustainable business activities as part of its Environmental Business Initiative.
Bank of America Corp (NYSE:BAC) in 2021 formed an ESG advisory and financing solutions team. This year, the company hired four top executives for the team, according to Reuters.
4. Salesforce Inc. (NYSE:CRM)
Cloud company Salesforce Inc (NYSE:CRM) is one of the top ESG companies in 2022. Salesforce Inc (NYSE:CRM) announced in September 2021 that it achieved net-zero residual emissions across its full value chain and met its 100% renewable energy goal for its operations. Salesforce Inc (NYSE:CRM) has also joined Amazon’s The Climate Pledge and plans to remove all carbon emissions from its business by 2040. The company built what it calls “Net Zero Cloud” to efficiently track and analyze its own carbon footprint. The CRM company says it works with suppliers who have committed to reduce their carbon footprint by 2024.
In 2020, Salesforce Inc (NYSE:CRM) also signed an agreement with renewable energy firm X-ELIO’s Blue Grass solar farm in Australia. The project will have the capacity to power 80,000 homes and save more than 320,000 tons of CO2 emissions annually.
Here is what Cooper Investors Global Equities Fund has to say about Salesforce, Inc. (NYSE:CRM) in its Q3 2022 investor letter:
“It seems unfashionable to discuss technology stocks given the current market mood, but we are observing positive signs from US software companies in terms of their journey along the ‘HubrisHumility’ cycle. We have trimmed and concentrated our software exposure significantly over the last 18 months down to two cloud-native SAAS players, Workday and Salesforce. We met with both businesses during our trip and came away encouraged from language indicating increased focus on profitability and cost control.
We see significant optionality in these businesses to grow at the same time as expanding margins and free cash flow. The discussions increased our conviction that returns on capital are now becoming a
priority for CEOs and CFOs in this sector who are talking for the first time about cost discipline, reduced capex, more measured hiring practices, a reduction in the level of stock-based compensation and scaled back M&A ambitions. Salesforce in a recent earnings update announced its first ever buyback for US$10bn…” (Click here to see the full text)
3. Microsoft Corporation (NASDAQ:MSFT)
With a market cap of $1.76 trillion, Microsoft Corporation (NASDAQ:MSFT) is one of the biggest tech companies in the world and is leading from the front when it comes to ESG. Like Apple, Microsoft plans to become carbon neutral by 2030. Since announcing this historic plan in January 2021, Microsoft Corporation (NASDAQ:MSFT) has cut its carbon emissions by 6 percent in a period of 12 months. During the same period, it purchased the removal of 1.3 million metric tons of carbon from 26 projects around the world.
By 2050, Microsoft Corporation (NASDAQ:MSFT) plans to remove the “historical emissions” it created since its founding. By 2030, Microsoft says it will be replenishing more water than it uses, becoming “water positive.” By the same time period, Microsoft Corporation (NASDAQ:MSFT) will become zero waste producer across its direct waste footprint.
2. Intel Corporation (NASDAQ:INTC)
Earlier this year, Intel Corporation (NASDAQ:INTC) announced plans to achieve net-zero greenhouse gas emissions across its global operations by 2040. Intel is operating in an industry notorious for its emissions. The manufacturing industry in the US alone accounts for about 23% of direct carbon emissions. But Intel Corporation (NASDAQ:INTC) is heavily investing in its ESG goals.
In 2021 alone, the company saved about 486 million kWh of electricity since the baseline date, while its total GHG emissions decreased 2% from the previous year. The company also plans to invest about $300 million in energy conservation at its facilities to achieve 4 billion cumulative kilowatt hours of energy savings. Intel Corporation (NASDAQ:INTC) is also eyeing to build new facilities to make progress towards meeting the U.S. Green Building Council® LEED® program standards.
1. Alphabet Inc. Class A (NASDAQ:GOOGL)
Alphabet Inc Class A (NASDAQ:GOOGL) is the top ESG company in 2022, thanks to the billions of dollars’ worth of ESG-related investments and ambitious goals it has set for the betterment of the environment. In its 2022 ESG report, the parent of Google said that it issued a whopping $5.75 billion in sustainability bonds, easily surpassing all peers in the industry. 100% of the net proceeds of these bonds have been allocated. As of 2021, Alphabet Inc Class A (NASDAQ:GOOGL) was able to match about 66% of the electricity used across its data centers with carbon-free sources.
Alphabet is also focusing on other aspects of the ESG matrix. In 2019, it committed $1 billion to support the construction of 20,000 affordable houses in the Bay Area. It is also focusing on racial equity and women’s rights across the globe.
Bronte Capital made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2022 investor letter:
Consensus longs—those stocks widely held and admired by fund managers—have recently underperformed the market. Consensus shorts have been bad shorts. We have over 500 shorts, of which a few are consensus, and we have noticed this effect. But we also own what we think is (alas) the most consensus long in this market: Alphabet Inc. (NASDAQ:GOOG). We find it hard to find any strong reason not to own it. Internet advertising is going from strength to strength and Google’s place in the market is mostly improving. Some of the other bets such as cloud services are beginning to pay off, and finally the CEO is expressing discipline on costs. (Per the consensus, the biggest problem with Google has been a lack of discipline on costs. Every time we look there are another 20 thousand employees.) Being a consensus long, it is down hard. We did say consensus longs are not going well…” (Click here to read the full text)
You can also take a look at Top 11 Stocks With Growth Potential According to Juniper Investment Company and 10 Stocks Hedge Fund Legend Donald Sussman is Buying.
