Top ESG ranked publicly traded firms in the U.S 2024
As of 2024, Hewlett Packard Enterprise Company was placed in the number-one spot by the JUST Capital annual survey. This survey reviews America’s largest publicly traded companies in relation to environmental, social, and corporate governance (ESG) responsibility. The survey operated a sample group of over 3,000 respondents, revising five major categories each carrying a different weight. Upon gathering the public opinion of leading publicly traded firms, data was evaluated in relevance to the weighted importance of each ESG category. Bank of America Corp. took the second place spot in the overall company rankings, receiving 106 points in the highest weighted category, "workers".
Evolving investor criteria
When reviewing ESG drivers, institutional investors placed significant weight on ESG ratings when making investment choices. While regional taxonomy alignment had minimal impact, ESG ratings emerged as the top factor influencing investment decisions. This shift has indicated a growing sophistication in how investors evaluate companies' sustainability efforts. Interestingly, many investors have developed their own ESG rating criteria when evaluating financial securities, such as ETFs, demonstrating a desire for more tailored and nuanced assessments of corporate responsibility.
Consumer preferences driving change
The impact of ESG factors has extended beyond the investment world, significantly influencing consumer behavior, particularly among younger demographics. For instance, over 40 percent of Gen Z Hispanics in the U.S. consider eco-friendly packaging a key factor in their purchasing decisions. This trend, along with concerns about animal welfare, natural products, and fair labor practices, highlights the growing importance of ESG considerations in shaping market demand. As consumers and investors increasingly prioritize these factors, companies will likely face pressure to improve their ESG performance to remain competitive.
