In this article, we will take a look at the 11 Best Sustainability Stocks to Invest In.
Sustainable investing, sometimes referred to as Environmental, Social, and Governance (ESG) investing, is essentially the assessment of both a company’s financial performance and its exposure to environmental, social, and governance risks. While frequently described as a catalyst for corporate change, ESG frameworks are increasingly used to evaluate long-term risk, capital allocation discipline, and business sustainability.
That said, capital flows into the space have recently been volatile. Net withdrawals from the broader universe of sustainable mutual funds and ETFs totaled an estimated $27 billion in the fourth quarter of 2025, compared with outflows of about $55 billion in the prior quarter.
Despite near-term volatility, global sustainable fund assets have increased by over sixfold from approximately $600 billion since the close of 2018, underpinning longer-term structural growth of sustainable assets. This growth is credited to increased investor interest in sustainability issues, especially climate change, and to supporting policy, mainly in Europe.
Notably, the Morgan Stanley Sustainability Institute found that 88% of global individual investors are keen on sustainable investing. Among these retail investors, the younger demographic (Gen Z and Millennials) seems most engaged, indicating that sustainability will become an increasingly crucial priority as their financial impact grows.
Our Methodology
For this list, we began by analyzing the Invesco MSCI Sustainable Future ETF (ERTH), which tracks the MSCI Global Environment Select Index. This index offers targeted exposure to six key environmental impact themes, making it a relevant benchmark for screening sustainability-focused stocks. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11. Enlight Renewable Energy Ltd. (NASDAQ:ENLT)
Enlight Renewable Energy Ltd. (NASDAQ:ENLT) ranks among the best sustainability stocks to invest in. With significant growth across all important financial measures, Enlight Renewable Energy Ltd. (NASDAQ:ENLT) reported record-breaking Q4 and full-year 2025 results on February 17.
Revenue and income totaled $152 million, reflecting a 46% increase over Q4 2024. Meanwhile, adjusted EBITDA increased by 51% to $99 million, with net profit jumping 153% to $21 million. Cash flow from operations also increased by 38%, reaching $75 million.
Enlight Renewable Energy Ltd. (NASDAQ:ENLT) recorded $582 million in revenue and profitability for the fiscal year 2025, up 46% from $399 million in the previous year. Net profit exceeded twofold, rising 142% to $161 million, thanks in part to a $80 million boost from the sale of the Sunlight cluster.
Additionally, Enlight Renewable Energy Ltd. (NASDAQ:ENLT) increased its market share in the European storage sector, particularly in Poland and Germany. In that regard, the company acquired Jupiter, a 150 MW + 2,000 MWh project in Germany, which is planned to begin commercial operations in the second half of 2028.
Enlight Renewable Energy Ltd. (NASDAQ:ENLT) is an Israeli company that develops and manages solar and wind power projects. Back in 2021, the Israel-based company acquired Clēnera of Boise, Idaho, to expand into the US market.
