By Terel Miles on May 15, 2023

18 Best Socially Responsible Stocks & ETFs (May 2023)

Socially responsible stocks are a growing trend among investors who want to align their investments with their values.

Socially responsible investing (SRI) is an investment strategy that seeks to generate financial returns while also considering environmental, social, and governance (ESG) factors.

ESG refers to the three main pillars of consideration for socially responsible investing.

Environmental factors include issues such as climate change, renewable energy, pollution, and natural resource depletion.

Social factors include human rights, labor practices, community development, and product safety.

Governance factors include board diversity, executive compensation, and transparency.

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Why Socially Responsible Stocks & ETFs?

According to the PwC, ESG assets are projected to reach $33.9 trillion by 2026, making up nearly a quarter of global assets under management (PwC, 2022).

One of the main ways that investors evaluate socially responsible stocks is through performance metrics.

There are a number of rating agencies that determine publicly traded companies ESG contributions and performance.

This includes Morgan Stanley’s MSCI ESG Ratings, Refinitiv’s ESG Ratings, S&P Global’s ESG Ratings and Sustainalytics.

These metrics include financial performance, environmental impact, social impact, and governance practices.

By using these metrics, investors can evaluate the impact of their investments and make informed decisions about where to invest their money to influence societal change.

Below, we will present the 18 Best Socially Responsible Stocks & ETFs to Buy in 2023!

Best Socially Responsible Stocks & ETFs

1. Microsoft (NASDAQ: MSFT)

Ticker: MSFT
Dividend Yield: 0.88%
Market Cap: $2.32 Trillion

Microsoft is a technology giant that has been making significant strides in ESG.

It has set ambitious goals to become carbon negative by 2030, and has invested heavily in renewable energy.

Microsoft has also made significant efforts to promote diversity and inclusion, with a focus on gender equality and LGBTQ+ rights.

Microsoft is a great socially responsible stock to consider for 2023.

2. Alphabet (NASDAQ: GOOGL)

Ticker: GOOGL
Dividend Yield: N/A
Market Cap: $1.41 Trillion

Alphabet, the parent company of Google, is a technology giant that has committed to promote sustainability and social justice.

The company has set a goal to become carbon neutral by 2030, and has made significant investments in renewable energy.

Alphabet has also made significant efforts to promote diversity and inclusion, with a focus on gender equality and racial justice.

In addition, the company has received high marks for its governance practices.

3. First Solar (NASDAQ: FSLR)

Ticker: FSLR
Dividend Yield: N/A
Market Cap: $24.10 Billion

First Solar is a leading renewable energy company that has set ambitious sustainability goals, such as achieving net-zero carbon emissions by 2028 and sourcing 100% renewable electricity by 2026.

The company has a strong track record in reducing its carbon footprint, promoting clean energy and water conservation, and prioritizing fair labor practices and human rights in its operations and supply chain.

Its commitment to ESG principles and renewable energy make it a top socially responsible stock to buy for 2023.

4. NextEra Energy (NYSE: NEE)

Ticker: NEE
Dividend Yield: 2.40%
Market Cap: $156.69 Billion

NextEra Energy is a renewable energy company that is leading the charge in the transition to clean energy.

They are currently the largest electric utility holding company in the United States.

The company has set ambitious goals to achieve 50% renewable energy by 2025, and to be carbon neutral by 2050.

NextEra Energy has been consistently ranked as one of the most sustainable companies in the world, and is a top stock to consider for investors who are looking to invest in the future of clean energy.

5. Procter & Gamble (NYSE: PG)

Ticker: PG
Dividend Yield: 2,41%
Market Cap: $367.87 Billion

Procter & Gamble is a consumer goods company that has made significant efforts to reduce its environmental impact.

The company has set a goal to reduce its greenhouse gas emissions by 50% by 2030, and has made significant investments in renewable energy.

They have also planned to reach carbon neutrality by 2040, through a globalized reduction in GHG emissions across their operations and supply chain networks.

Procter & Gamble has also committed to advancing social and community impact, making investments in multicultural representation, gender and board presentation.

6. Salesforce (NYSE: CRM)

Ticker: CRM
Dividend Yield: N/A
Market Cap: $202.71 Billion

Salesforce is a cloud-based software company that has made significant efforts to promote sustainability and social justice.

The company has set a goal to achieve net-zero greenhouse gas emissions by 2050, and has made significant investments in renewable energy.

Salesforce has also made conscious to promote diversity and inclusion, with a focus on gender equality and LGBTQ+ rights.

In their FY2023 Stakeholder Impact Report, they’ve noted making significant investments in black-owned businesses with more than 50% of their employees identifying as underrepresented groups.

7. Mastercard (NYSE: MA)

Ticker: MA
Dividend Yield: 0.60%
Market Cap: $362.57 Billion

Mastercard is a financial services company that has made significant efforts to promote sustainability, social justice, and good governance practices.

The company has set a goal to achieve net-zero greenhouse gas emissions by 2040 and has made significant investments in gender parity, LGBTQ+, disability, and accessibility inclusion.

With a focus on gender equality and financial inclusion, Mastercard is a great socially responsible stock to consider for 2023.

8. Visa (NYSE: V)

Ticker: V
Dividend Yield: 0.78%
Market Cap: $485.71 Billion

Visa is a financial services company that has made significant efforts to promote sustainability and social justice.

The company has set a goal to become carbon neutral by 2040, with a strong focus on sustainable commerce to advance its financial inclusion efforts.

Visa has also made significant efforts to promote diversity and inclusion and governance, with a focus on gender equality and racial justice.

This includes advancing board member representation, gender parity, workforce compensation, employee benefits and safety.

9. Adobe (NASDAQ: ADBE)

Ticker: ADBE
Dividend Yield: N/A
Market Cap: $161.88 Billion

Adobe is a software company that has made significant efforts to promote sustainability and social justice.

The company has set an ambitious goal to achieve net-zero greenhouse gas emissions by 2035, driven by investments in their workforce, renewable energy, paperless workflows, and reduction of waste in their supply chain networks.

Adobe has also committed to build LEED-based offices, with plans to make full scale operations run 100% on renewable energy such as Wind and Solar.

10. Johnson & Johnson (NYSE: JNJ)

Ticker: JNJ
Dividend Yield: 2.96%
Market Cap: $416.25 Billion

Johnson & Johnson is a healthcare company that has made significant efforts to promote sustainability, governance and social justice.

The company has set an extremely ambitious goal to achieve carbon neutrality by 2030.

Johnson & Johnson is one of the world’s most valuable companies, and they are just 1 of 3 companies in the world to maintain a AAA credit rating.

Over 50% of their energy is currently sourced from renewable energy, and by 2030 the company will see an additional 20% reduction in Scope 3 carbon emissions.

They are a champion and leader for global public health, environmental justice, gender parity, public policy and diversity and inclusion.

11. Waste Management (NYSE: WM)

Ticker: WM
Dividend Yield: 1.65%
Market Cap: $69.14 Billion

Waste Management is a waste management company that has made significant efforts to promote sustainability and social justice.

The company has set a goal to reduce its greenhouse gas emissions by 20% by 2038, and become carbon neutral by 2050.

They are currently working towards 25% female representation in their workforce, and 30% racially diverse representation in management positions by 2030.

Waste Management’s strong commitment to social impact, sustainability and equity, diversity and inclusion, make it a top socially responsible stock for 2023.

12. Kimberly-Clark Corporation (NYSE: KMB)

Ticker: KMB
Dividend Yield: 3.26%
Market Cap: $48.73 Billion

Kimberly-Clark Corporation is a leading consumer goods company that has made significant efforts to promote sustainability, social justice, and good governance practices.

The company has set ambitious sustainability goals, such as sourcing 100% of its fiber from certified sustainable sources and reducing its greenhouse gas emissions by 20% by 2030.

Kimberly-Clark has also made significant efforts to promote diversity and inclusion, with a focus on gender equality and human rights in its operations and supply chain, making it a top socially responsible stock to consider for 2023 and beyond.

Can You Invest In Socially Responsible ETFs?

So, you might be wondering if you can invest into socially responsible ETFs?

Well the answer is yes and there are a number of socially responsible ETFs that investors can buy to get exposure to ESG assets.

Below we will present six best Socially Responsible ETFs to consider!

iShares ESG Aware MSCI USA ETF (ESGU)
iShares ESG Aware MSCI EAFE ETF (ESGD)
iShares Global Clean Energy ETF (ICLN)
Vanguard ESG U.S. Stock ETF (ESGV)
Impax Ellevate Global Women’s Leadership Fund (PXWEX)
iShares USD Green Bond ETF (BGRN)

Frequently Asked Questions (FAQs)

What is a socially responsible stock?

Socially responsible investing (SRI), is an investment strategy that seeks to generate financial returns while also considering environmental, social, and governance (ESG) factors.

Is socially responsible investing possible?

Socially responsible investing is possible by investing in individual socially responsible public companies, ESG mutuals funds, and ETFs.

What is an example of a socially responsible investment?

An example of a socially responsible investment is ESG investing. This involves investing into publicly traded companies while considering ESG factors.

Disclosure: The author holds no position mentioned in this article. Freedom Stocks has a disclosure policy.