Global Sustainable Stock Picks includes articles by financial analysts at Morningstar and Insider Monkey. Plus, links to five more articles!

Transcript & Links, Episode 147, February 7, 2025

Hello, Ron Robins here. Welcome to my podcast episode 147, published February 7, 2025, titled “Global Sustainable Stock Picks.” It’s presented by Investing for the Soul. Investingforthesoul.com is your site for vital global ethical and sustainable investing mentoring, news, commentary, information, and resources.

Remember that you can find a full transcript and links to content – including stock symbols and bonus material – on this episode’s podcast page at investingforthesoul.com/podcasts.

Also, a reminder. I do not evaluate any of the stocks or funds mentioned in these podcasts, and I don’t receive any compensation from anyone covered in these podcasts. Furthermore, I will reveal any investments I have in the investments mentioned herein.

Additionally, quotes about individual companies are brief. Please go to this podcast’s webpage for links to the articles and more company and stock information.

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Global Sustainable Stock Picks (1)

I’m beginning this podcast with this intriguing article titled 10 Best Ethical Companies To Invest In According to Reddit. It’s by Mashaid Ahmed in Hedge Funds, News and seen on insidermonkey.com. Here are some quotes from the article.

“We sifted through relevant threads to compile a list of the 25 ethical companies. We then used Insider Monkey’s Hedge Fund database to rank 10 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.

Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds…

10. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Investors: 38

Enphase Energy is a leading provider of advanced home energy solutions, including micro inverters, batteries, EV chargers, and energy management software. The company enables homes and businesses to harness clean energy efficiently and helps reduce carbon emissions.

9. United Parcel Service, Inc. (NYSE:UPS)

Hedge Fund Investors: 43

United Parcel Service is one of the largest package delivery companies in the world. The company provides logistics, freight, and supply chain solutions to customers across various industries, and is known for its ethical practices including a strong focus on sustainability through its carbon-neutral shipping options, investments in alternative fuel vehicles, and initiatives to reduce emissions across its operations.

8. Ecolab Inc. (NYSE:ECL)

Hedge Fund Investors: 47

Ecolab is a leader in water, hygiene, and energy technologies and services. The company has a presence in over 170 countries and serves a diverse range of industries, including food service, healthcare, hospitality, industrial, and energy. Ecolab’s innovative solutions not only enhance operational performance but also significantly reduce water and energy usage, making them essential for customers in unpredictable and challenging environments.

7. Waste Management, Inc. (NYSE:WM)

Hedge Fund Investors: 54

Waste Management, Inc. is one of the largest providers of waste and recycling services in North America. The company handles everything from residential trash to industrial waste solutions. Waste Management, Inc.’s focus on environmental responsibility is evident in its investments in recycling technologies and renewable energy projects, including landfill gas-to-energy initiatives…

Waste Management, Inc. is making substantial investments in sustainability and renewable energy, which are expected to drive significant long-term growth.

6. MSCI Inc. (NYSE:MSCI)

Hedge Fund Investors: 55

MSCI is an American finance company that provides investment decision support tools, including indexes, portfolio analysis tools, and ESG (Environmental, Social, and Governance) research. The company’s clients include asset managers, hedge funds, and financial institutions. MSCI is a strong advocate of sustainable investing and guides investors toward responsible and impactful investments.

5. The Coca-Cola Company (NYSE:KO)

Hedge Fund Investors: 69

The Coca-Cola Company is a leader in the beverage industry and offers a wide range of soft drinks, juices, and other refreshments. The company is known for its emphasis on sustainability efforts.

4. American Tower Corporation (NYSE:AMT)

Hedge Fund Investors: 73

American Tower is a REIT that owns and operates telecommunications infrastructure, including wireless and broadcast towers. The company has over 200,000 communication sites across the United States, Europe, and emerging markets and serves telecom operators. American Tower is known for its ethical commitment through its focus on sustainable practices, such as energy-efficient infrastructure, and efforts to bridge the digital divide in underserved communities.

3. Costco Wholesale Corporation (NASDAQ:COST)

Hedge Fund Investors: 75

Costco operates membership-based warehouse clubs and offers a wide range of products from groceries to electronics at competitive prices. The company serves over 138 million cardholders, including 77.4 million paid household members, and continues to expand its footprint through strategic warehouse openings and innovative digital initiatives. Costco is known for its ethical business practices, employee well-being through industry-leading wages, and sustainability efforts in reducing waste, sourcing responsibly, and maintaining transparent supplier practices.

2. Starbucks Corporation (NASDAQ:SBUX)

Hedge Fund Investors: 76

The company operates more than 32,000 stores worldwide and offers premium coffee, tea, and snack products, along with other consumer-packaged goods such as coffee beans and ready-to-drink beverages. The company’s ethical initiatives include sourcing ethically produced coffee through its Coffee and Farmer Equity (C.A.F.E.) practices.

1. Microsoft Corporation (NASDAQ:MSFT)

Hedge Fund Investors: 279

Microsoft is known for its innovation, and leadership in corporate responsibility.

Microsoft is continuously innovating its Productivity and Business Processes segment, which includes Office 365, LinkedIn, and Dynamics 365. The company recently integrated its 365 Copilot, an AI-powered assistant, into productivity tools such as Word, Excel, and Outlook, which has led to a significant increase in user engagement and business value.”

End quotes.

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Global Sustainable Stock Picks (2)

Many ethical and sustainable investors want to internationalize their portfolios. So, here’s a new article to assist them. It’s titled These 8 Foreign Stocks Are Widely Held by Global Sustainable Funds. It’s by Liz Angeles and found on morningstar.com. Here are some quotes from the article.

“To obtain top stocks widely owned by ESG global sustainable funds, we ran two searches on the open-end and exchange-traded funds coverage. We looked for large-cap global funds and selected the oldest share classes. We looked at the funds that are considered sustainable investment and compared them with the traditional funds. (And) pulled the top 500 holdings from the sustainable funds, and likewise for the traditional funds, and analyzed the average weights of each security.

Stocks That Are Uniquely Held by Global Sustainable Funds

Source: Morningstar Direct as of 1/22/2025.

1. Schneider Electric SE

Morningstar Rating: 2 Stars

Schneider Electric is a leading global supplier of electrical and industrial automation equipment. The group has four end markets: buildings, data centers, infrastructure, and industry, each of which relies on Schneider’s products and solutions to ensure their operations run safely and efficiently.

‘Two thirds of Schneider’s revenue is generated from electric utilities, buildings, and data centers, which are three end markets enjoying multiyear secular growth themes.’ – Matthew Donen, Director, Morningstar.

‘Schneider has the strongest management of its material ESG issues across the electrical equipment subindustry.’ – Morningstar Sustainalytics.

2. Iberdrola SA

Morningstar Rating: 3 Stars

‘Iberdrola is the second-biggest integrated utility in Europe after Enel. Besides its domestic Spanish market, Iberdrola has strong exposure to the United Kingdom since the acquisition of Scottish Power in 2007.’ – Tancrede Fulop, Morningstar senior equity analyst.

‘Carbon pricing and regulation are in place or expected in the main markets in which Iberdrola operates. This will likely benefit the company, as its generation mix is relatively low-carbon: renewables, hydro, and nuclear comprised 61% of generation in 2023, while all remaining coal-fired power plants were closed in 2020.’ – Morningstar Sustainalytics.

3. TE Connectivity PLC Registered Shares

Morningstar Rating: 3 Stars

‘TE Connectivity designs and manufactures connectors and sensors, supplying custom and semicustom solutions to a bevy of end markets in the transportation, industrial, and communication industries.’ – William Kerwin, Morningstar equity analyst.

In its 2023 Corporate responsibility report, TE Connectivity reported that it reduced its absolute scope 1 and 2 greenhouse gas emissions by 39% in 2023. This included achieving 77% renewable electricity use globally.’

4. Trane Technologies PLC Class A

Morningstar Rating: 1 Star

‘Trane Technologies is a leading supplier of climate control products and services.’ – Brian Bernard, director of industrials equity research for Morningstar.

‘Additionally, the company manufactures specialized equipment where competition is limited. This can lead to monopolization of product lines and create opportunities for the company to become involved in anticompetitive practices, such as price fixing and collusion. Trane is also exposed to asbestos-related claims from its former operations.’ – Morningstar Sustainalytics.

5. Prysmian SpA

Morningstar Rating: 1 Star

Prysmian SpA is an Italian manufacturer of electric power transmission and telecommunications cables and systems… More than half the firm’s revenue is generated in the Europe, Middle East, and Africa regions, with the rest coming from North America, Latin America, and Asia-Pacific regions.

‘Prysmian SpA has assigned responsibility for overseeing ESG issues at the board level… The company’s overall management of material ESG issues is strong.’ – Morningstar Sustainalytics.

6. Aptiv PLC

Morningstar Rating: 3 Stars

Aptiv PLC signal and power solutions segment supplies components and systems that make up a vehicle’s electrical system, including wiring assemblies and harnesses, connectors, electrical centers, and hybrid electrical systems…

‘To keep pace with the changing automotive industry and increasing consumer demand for new sustainable mobility solutions, Aptiv boosted investments into vehicle electrification solutions and other research and development projects. The company’s overall management of material ESG issues is strong.’ – Morningstar Sustainalytics.

7. Infineon Technologies AG

Morningstar Rating: 4 Stars

‘Infineon is a leading broad-based European chipmaker, with significant exposure to secular growth drivers in the automotive chip sector. Infineon should emerge as a leading supplier for electric vehicles and active safety systems used in cars, with increasing exposure to car ‘infotainment’ systems. – Brian Collelo, Morningstar Strategist.

‘Product Governance for the semiconductor industry encompasses functionality, cost, marketability, reliability, form, packaging, and delivery time of chips… The company’s exposure to product governance issues is Medium and moderately above the subindustry exposure.’ – Morningstar Sustainalytics.

8. Siemens AG

Morningstar Rating: 3 Stars

Siemens is a multi-industry company focused on the areas of automation, electrification, mobility, and healthcare. Its top three geographic regions—the United States, Germany, and China—contribute over half group revenue…

‘Our 7% EPS growth estimate annualized through 2028 is on the low end of some of its peers, attributable to the cyclicality in its discrete automation business.’ – Matthew Donen, Director for Morningstar.

‘The company’s overall management of material ESG issues is strong.’ – Morningstar Sustainalytics.”

End quotes.

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Additional articles not covered due to time constraints

1. Title: Why Ecolab Inc. (ECL) Is One of the Best Humane Stocks to Invest in Now? On finance.yahoo.com. By Mashaid Ahmed.

2. Title: Visa vs. Mastercard: Who’s Leading the Charge in Finance, Sustainability, and Net Zero? On carboncredits.com. By Jennifer L

3. Title: 12 Most Promising Green Stocks According to Hedge Funds on insidermonkey.com. By Mashaid Ahmed in Hedge Funds, News.

4. Title: 8 Best Humane Stocks to Invest in Now on insidermonkey.com. By Mashaid Ahmed in Hedge Funds, News and seen on insidermonkey.com.

Article from Australia

1. Title: Top Ethical Investment Funds in Australia for 2025 – James Hayes Financial Advisor & Planner – Caringbah, AU on jameshayesfpblog.wordpress.com. By James Hayes Financial Planner.

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Ending Comment

These are my top news stories with their stock and fund tips for this podcast “Global Sustainable Stock Picks.”

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I’ll talk to you next on February 21^st.

Bye for now.

© 2025 Ron Robins, Investing for the Soul