Stocks to buy

As the world changes, investors look to align their portfolios with their values, sparking an interest in the best ESG stocks. The focus on environmental, social, and governance factors has ushered in a new era of responsible investing.

ESG stocks represent companies committed to sustainability, corporate citizenship, and long-term expansion. Public awareness around ESG ratings has increased, which is influencing purchasing decisions and garnering the interest of millennials and Generation Z.

In today’s market, businesses cannot afford to alienate their consumer base by ignoring ESG initiatives.

Though the journey to net-zero emissions is far from over, the energy transition promises to be one of the biggest shifts of our lifetime.

As we navigate this transformation, sustainable ESG stocks will likely reward investors handsomely, who can effectively recognize their potential and contribute to a greener future.

MSFT Microsoft $304.40
NEE NextEra Energy  $75.39
BG Bunge $90.79

Microsoft (MSFT)

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Microsoft (NASDAQ:MSFT) is a leading tech powerhouse that is firmly committed to its bold ESG initiatives. It has set ambitious sustainability goals for its business, pledging to become carbon negative by 2030 while removing its historical emissions by 2050.

Its management believes that the company’s top and bottom-line strength can go hand-in-hand with its ESG plans.

Microsoft’s Vice Chairman and President, Brad Smith, highlighted the company’s bold objectives at the Web Summit last year. The firm’s goal is to become carbon-negative, water positive and achieve zero waste by the conclusion of the current decade.

With a clear roadmap in place, Microsoft has been looking to achieve carbon neutrality since 2012. The tech giant has plans to achieve a 100% renewable energy supply by 2025 and electrify its vehicle fleet by 2030.

As it transforms every facet of its business, The firm stands out as an ESG stock with immense long-term potential.

NextEra Energy (NEE)

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NextEra Energy (NYSE:NEE) is a frontrunner in both the utility and renewable energy industry, emerging as a leading ESG stock to buy, especially amidst recessionary concerns.

Utility stocks are known for their stability, and renewables are set to thrive in the long run as the U.S. transitions away from fossil fuels. Hence, it packs a perfect punch for long-term ESG investors.

NextEra Energy has been killing it of late with its quarterlies, with its 2022 earnings report displaying strong double-digit growth across key metrics.

It announced 8,000 megawatts of new projects, further strengthening its position in its sector.

The firm’s commitment to sustainability shines through its Real Zero initiative, targeting emission elimination from operations by 2045.

It focuses on its Zero Carbon Blueprint, detailing plans to boost renewable energy deployment.

Investors seeking ESG stocks to buy can be optimistic about NextEra Energy’s potential upside and eye-catching dividend profile. It’s a dividend aristocrat that has paid a consistently growing dividend since 1995.

Bunge (BG)

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Bunge (NYSE:BG), is another top ESG pick, operating a robust agribusiness and food company focusing on international soybean exports, food processing, grain trading, and fertilizer manufacturing.

It’s shown its long-term commitment to accountability, sustainability, and integrating ethical leadership into its value chain.

It operates a growing business marked by glowing top and bottom-line expansion and a solid balance sheet.

It continues to reinvest its profits at a high rate of return while pursuing long-term growth strategies, such as strategic acquisitions. Its dedication to both financial success and sustainability makes it an attractive long-term choice for investors seeking high-performing ESG stocks.

Though it lost roughly 20% of its value in the past year, it has effectively generated a total return of 153% in the past three years.

It boasts a rock-solid dividend profile, marked by a 2.7% yield and 18 consecutive years of dividend payments.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.