Best Sustainable Companies to Own: 2025 Edition

From Morningstar: 2025-04-24 04:53:00

Morningstar highlights companies with wide moats and strong ESG management. ESG factors like durability and sustainability mitigate long-term risks. Energy and utilities face the biggest ESG risks, while technology and real estate have the smallest. Morningstar’s ESG Risk Rating assesses companies’ vulnerability and management of ESG risks.

RELX is a UK-based provider of business information and analytics with a wide economic moat and a strong ESG Risk Management Rating. Danaher focuses on manufacturing scientific instruments and has a strong ESG Risk Management Rating. Keysight Technologies leads in communications testing with a wide moat and a strong ESG Risk Management Rating.

Sustainable companies can still have controversies, like Experian with a low ESG Risk Rating but a significant Controversy Rating. The focus is on long-term sustainability, not valuations. Investors can monitor the Morningstar US Sustainability Moat Focus Index for guidance. This list of low-ESG-risk companies with wide moat ratings is worth watching for long-term ESG risk management.



Read more at Morningstar: Best Sustainable Companies to Own: 2025 Edition