Important Information

You are visiting the international Vantage Markets website, distinct from the website operated by Vantage Global Prime LLP
( www.vantagemarkets.co.uk ) which is regulated by the Financial Conduct Authority ("FCA").

This website is managed by Vantage Markets' international entities, and it's important to emphasise that they are not subject to regulation by the FCA in the UK. Therefore, you must understand that you will not have the FCA’s protection when investing through this website – for example:

  • You will not be guaranteed Negative Balance Protection
  • You will not be protected by FCA’s leverage restrictions
  • You will not have the right to settle disputes via the Financial Ombudsman Service (FOS)
  • You will not be protected by Financial Services Compensation Scheme (FSCS)
  • Any monies deposited will not be afforded the protection required under the FCA Client Assets Sourcebook. The level of protection for your funds will be determined by the regulations of the relevant local regulator.

If you would like to proceed and visit this website, you acknowledge and confirm the following:

  • 1.The website is owned by Vantage Markets' international entities and not by Vantage Global Prime LLP, which is regulated by the FCA.
  • 2.Vantage Global Limited, or any of the Vantage Markets international entities, are neither based in the UK nor licensed by the FCA.
  • 3.You are accessing the website at your own initiative and have not been solicited by Vantage Global Limited in any way.
  • 4.Investing through this website does not grant you the protections provided by the FCA.
  • 5.Should you choose to invest through this website or with any of the international Vantage Markets entities, you will be subject to the rules and regulations of the relevant international regulatory authorities, not the FCA.

Vantage wants to make it clear that we are duly licensed and authorised to offer the services and financial derivative products listed on our website. Individuals accessing this website and registering a trading account do so entirely of their own volition and without prior solicitation.

By confirming your decision to proceed with entering the website, you hereby affirm that this decision was solely initiated by you, and no solicitation has been made by any Vantage entity.

I confirm my intention to proceed and enter this website Please direct me to the website operated by Vantage Global Prime LLP, regulated by the FCA in the United Kingdom

By providing your email and proceeding to create an account on this website, you acknowledge that you will be opening an account with Vantage Global Limited, regulated by the Vanuatu Financial Services Commission (VFSC), and not the UK Financial Conduct Authority (FCA).

    Please tick all to proceed

  • Please tick the checkbox to proceed
  • Please tick the checkbox to proceed
Proceed Please direct me to website operated by Vantage Global Prime LLP, regulated by the FCA in the United Kingdom.

×

Watch Reborn a Trader

row

View More
SEARCH
  • All
    Trading
    Platforms
    Academy
    Analysis
    Promotions
    About
  • Search
Keywords
  • Forex Trading
  • Vantage Rewards
  • Spreads
  • facebook
  • instagram
  • twitter
  • linkedin
  • youtube
World Environment Day: 3 ESG Stocks to Discover

TABLE OF CONTENTS

World Environment Day: 3 ESG Stocks to Discover

World Environment Day: 3 ESG Stocks to Discover

Vantage Updated Updated Wed, 2024 January 31 11:30

World Environment Day, celebrated annually on 5 June, brings together people across the world to help protect and restore the Earth’s ecosystems. In 2023, we mark the event’s 50th anniversary. Companies are also actively contributing to the sustainability and well-being of our planet.

This commitment is evident in their policies, initiatives, and business practices aligned with Environmental, Social, and Governance (ESG) principles. Here are three stocks to watch from companies that are leading the way in ESG standards.

3 ESG Stocks to Discover

The 3 stocks selected in the below table are based on their MSCI ESG Rating of triple AAA.

NameTickerMSCI ESG Rating
NvidiaNASDAQ:NVDAAAA
MicrosoftNASDAQ:MSFTAAA
Xylem Inc.NYSE:XYLAAA

Table 1: Companies and their MSCI ESG Rating [1,2]

1. Nvidia (NASDAQ:NVDA)

Nvidia, an American tech giant, is renowned for making top-tier graphics processing units (GPUs) for gaming and multimedia, alongside launching successful DirectX drivers for Microsoft. By 2011, they had already shipped 1 billion graphics processors, a testament to their market dominance [3]. Today, NVIDIA’s reach goes well beyond just gaming. They’re making waves in everything from visual effects to mobile and super-computing, and even artificial intelligence. 

Since 2014, Nvidia has reduced its per-employee emissions by 15% and aims to derive 65% of its global electricity from renewable sources by the end of 2025 [4]. The company has consistently pursued its mission to enhance the energy efficiency of their products with an emphasis on reducing carbon emissions. In May 2023, Nvidia announced the development of a supercomputer powered by the NVIDIA Grace CPU Superchip. This supercomputer, capable of delivering performance and energy efficiency six times that of standard systems, ranks among Europe’s most energy-efficient systems [5].

Nvidia is also actively working to minimise its waste production through several waste reduction initiatives, ensuring that over 94% of its consumer packaging is recyclable, with its latest GPU retail packaging being 100% biodegradable [6]

Here’s a look at Nvidia’s market movement over the past year, which has been on an uptrend since December 2022.

ESG stock

Figure 1: Nvidia price chart for a duration of one year. Image obtained from Trading View

2. Microsoft (NASDAQ:MSFT)

Microsoft Corporation is a company that needs no introduction, having developed software solutions like Microsoft Windows operating system (OS) and Office suite. Despite the popularity of iOS developed by Apple, as of January 2023, the Windows OS maintained a 74% share of the total desktop operating system usage according to Statista [7]. Apart from developing software solutions, Microsoft has recently set its sights on artificial intelligence (AI) through a strategic partnership with OpenAI in chatbot development. For more insights on the rise of AI Chatbots, you can read more here.

Microsoft is committed to being carbon negative by 2030, and by 2050 will remove all their historical emissions since the company was founded in 1975 [8]. Microsoft has also been resolute in its mission to increase the energy efficiency of its data centres, with a particular focus on reducing their environmental footprint. For example, in California, the data centres are cooled with an indirect evaporative cooling system that uses reclaimed water throughout the year, eliminating the need for freshwater [9].

Microsoft is also dedicated to minimising its waste output through several waste management initiatives, such as recycling electronic waste and reducing single-use plastics in its packaging. Its goals for sustainable packaging include [10]:

  • Elimination of single-use plastic packaging by 2025.
  • Achieving 100% certified sustainable forested fibre by 2025.
  • Implementing 100% recyclable packaging by 2030.
  • Incorporating 100% recycled, renewable, or responsibly sourced content by 2030.

Here’s Microsoft’s stock performance over the past year, which has shown an upward trend since January 2023.

ESG shares

Figure 2: Microsoft price chart for a duration of one year. Image obtained from Trading View

3. Xylem Inc (NYSE:XYL)

Xylem Inc. is an American company specialising in water technology solutions, to help clients overcome water-related challenges. Xylem’s contributions extend beyond water technology and also encompass other areas such as water conservation, clean water initiatives, and smart infrastructure.

ESG share

Image 1: Sourced from Xylem official website. https://www.xylem.com/en-us/about-xylem/newsroom/press-releases/manchester-city-announces-new-global-partnership-with-xylem/

In March 2023, Xylem announced a partnership with Manchester City Football Club aimed at raising awareness about untreated wastewater and inspiring fans to take action [11]

In 2021, Xylem successfully recycled all the processed water at 12 of its main facilities. By 2022, it expanded this achievement to include 17 facilities [12]. Xylem has also been unwavering in its mission to optimise the efficiency of its products, placing a significant emphasis on water conservation. Moreover, in 2022, 88% of the electricity consumed at Xylem’s manufacturing, office, and service facilities came from renewable sources, reflecting a 13% improvement from 2021 [13].

Xylem is committed to reducing waste by using different waste management programs like recycling, composting, and minimising the use of single-use plastics in its packaging. Since 2020, the company has been actively working to ensure that 75% of its packaging materials can be reused, recycled, or composted. In 2022, they achieved an impressive 37% increase, bringing their packaging to an 85% compliance with these standards [14]

Here is a look at the Xylem chart over the last year, which has shown to the trending sideways since January 2023.

ESG share

Figure 3: Xylem price chart for a duration of one year. Image obtained from Trading View

Trading Opportunities With ESG Companies

Investing interests in ESG companies continue to grow with increasing importance placed on combating climate change and raising social awareness. Companies with strong ESG performance could be the ones to watch for those who are interested in ESG investing.
Open a live trading account with Vantage in less than five minutes and start trading US stock CFDs at $0 commission fees.

References

  1. “10 Best Stocks for Environmental, Social, and Governance (ESG) Investing – The Motley Fool” https://www.fool.com/investing/stock-market/types-of-stocks/esg-investing/esg-stocks/ Accessed 24 May 2023
  2. “Top 10 ESG Stocks to Watch [2023] – Stake” https://hellostake.com/au/blog/trending/top-esg-stocks-to-watch Accessed 24 May 2023
  3. “NVIDIA and TSMC Ship One-Billionth GeForce Graphics Processor – PR Newswire” https://www.prnewswire.com/news-releases/nvidia-and-tsmc-ship-one-billionth-geforce-graphics-processor-113442544.html Accessed 24 May 2023
  4. “How Nvidia is fighting climate change in the Omniverse – Sustainability” https://sustainabilitymag.com/esg/how-nvidia-fighting-climate-change-omniverse Accessed 24 May 2023
  5. “NVIDIA Grace Drives Wave of New Energy-Efficient Arm Supercomputers – Nvidia” https://nvidianews.nvidia.com/news/nvidia-grace-drives-wave-of-new-energy-efficient-arm-supercomputers Accessed 24 May 2023
  6. “Nvidia Corporate Responsibility Report Fiscal Year 2023 – Nvidia” https://images.nvidia.com/aem-dam/Solutions/documents/FY2023-NVIDIA-Corporate-Responsibility-Report-1.pdf Accessed 24 May 2023
  7. “Global market share held by operating systems for desktop PCs, from January 2013 to January 2023 – Statista” https://www.statista.com/statistics/218089/global-market-share-of-windows-7/#statisticContainer Accessed 24 May 2023
  8. “How Microsoft Is Leading The Response To The Climate Crisis – Forbes” https://www.forbes.com/sites/timabansal/2022/06/22/how-microsoft-is-leading-the-response-to-the-climate-crisis/?sh=1a80d87050a1 Accessed 24 May 2023
  9. “Sharing the latest improvements to efficiency in Microsoft’s datacenters – Microsoft Azure” https://azure.microsoft.com/en-us/blog/sharing-the-latest-improvements-to-efficiency-in-microsoft-s-datacenters/ Accessed 24 May 2023
  10. “Packaging – Microsoft” https://www.microsoft.com/en-us/legal/compliance/packaging Accessed 24 May 2023
  11. “WORLD WATER DAY: WATER FACTS COME TO LIFE WITH XYLEM – Manchester United” https://www.mancity.com/citytv/womens/world-water-day-2023-63815077 Accessed 25 May 2023
  12. “Xylem 2022 Sustainability Report – Xylem” https://www.xylem.com/siteassets/sustainability/2022/2022_xylem_sustainability_report_r01.pdf Accessed 25 May 2023
  13. “Water Operators Enabled to Cut CO2e Emissions by 2.8 Million Metric Tons, Using Xylem Technology – Yahoo! Finance” https://finance.yahoo.com/news/water-operators-enabled-cut-co2e-113000989.html Accessed 25 May 2023
  14. “Xylem 2022 Sustainability Report – Xylem” https://www.xylem.com/siteassets/sustainability/2022/2022_xylem_sustainability_report_r01.pdf Accessed 25 May 2023
  • vantage academy open account

    Open Trading Account

    Discover the endless trading possibilities with our cutting-edge platform, designed to empower both beginners and seasoned traders alike.

  • vantage academy app

    Download Vantage App

    Trade on the go with the Vantage All-In-One Trading App, where smooth execution and market access come together in the palm of your hand.

  • vantage academy start trading

    Start Trading

    Are you an existing user? Login to your account to start trading 1,000+ products including forex, indices, gold, shares and more.