In this article, we will discuss the 12 Best Ethical Companies to Invest in 2025.
Investors are increasingly shifting to ethical stocks, not only for the sake of value alignment, but also to shield themselves against systemic risk. This is because we are experiencing an era where volatility is no longer an exception but a commonplace. This is evident from weaker-than-expected Eurozone PMI data (51.4 vs. 52.5 forecast). What was once viewed as a ‘feel-good’ measure has now turned into a powerful framework to generate long-term alpha and risk-adjusted returns.
While $8.6 billion in outflows from ESG funds was recorded in Q1 2025, the global ESG investing universe is projected to grow from $29.77 trillion to $127.03 trillion by 2034, representing a 15.96% CAGR. Furthermore, ESG fund assets increased to $571.8 billion in May 2025 alone; Environmental Focus funds posted the strongest monthly growth at 6.9%. This reflects the investors’ increasing preference for investing in companies with transparent governance, lower carbon exposure, and forward-looking social policies.
Moreover, the willingness to pay a premium for ethical investing is rising. According to a 2024 Deloitte survey, 83% of institutional investors have expressed their willingness to pay more for companies with strong ESG profiles. Surprisingly, nearly 69% are willing to pay a 3-6% acquisition premium. With disclosure requirements tightening under CSRD and ISSB guidelines, investors’ ability to separate genuine impact from greenwashing will only improve.
With this backdrop in mind, let’s now move on to our list of the 12 Best Ethical Companies to Invest in 2025.
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Methodology
To curate our list of the 12 Best Ethical Companies to Invest in 2025, we used Ethisphere’s list of ‘World’s Most Ethical Companies’. Ethisphere’s list relies on its Ethics Quotient, which evaluates companies based on their ethics, compliance, governance, and corporate responsibility across multiple criteria. We then used Insider Monkey’s database to assess hedge fund sentiment on the shortlisted stocks. Finally, we ranked the stocks in ascending order based on the number of hedge funds holding stakes in the respective stocks as of Q1 2025.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Autodesk, Inc. (NASDAQ:ADSK)
Number of Hedge Funds: 82
By earning a spot on Ethisphere’s 2025 list of the World’s Most Ethical Companies and attracting significant hedge fund interest, Autodesk, Inc. (NASDAQ:ADSK) secures a place on our list of the 12 Best Ethical Companies to Invest in 2025.
On July 23, Loop Capital started coverage on Autodesk, Inc. (NASDAQ:ADSK) with a ‘Hold’ rating, setting a $320 price target. The company’s share price is currently at $301.10, and this price target implies an upside potential of 6.28%. The analyst attributed the ‘Hold’ rating to softness in the company’s core construction market, marked by high interest rates and rising material costs. However, the analyst remains optimistic about ADSK’s long-term potential.
Meanwhile, it was reported weeks ago that Autodesk, Inc. (NASDAQ:ADSK) was planning to acquire PTC, a Boston-based rival engineering company. However, those plans have since changed. On July 14, 2025, Bloomberg reported that ADSK is no longer thinking of acquiring PTC. The share price of Autodesk went off on a downward slope following the news of potential acquisition; however, it’s gaining upward momentum now. The share price is up 3.06% over the past week.
Autodesk, Inc. (NASDAQ:ADSK), a global 3D design, engineering, construction, and entertainment software company, offers cutting-edge tools for everything from infrastructure to animation. It is one of the best ESG stocks.
11. Workday, Inc. (NASDAQ:WDAY)
Number of Hedge Funds: 85
Workday, Inc. (NASDAQ:WDAY) secures a place on our list of the 12 Best Ethical Companies to Invest in 2025.
On July 14, 2025, Workday, Inc. (NASDAQ:WDAY) was selected by Seattle University as its partner. The university will integrate its HR, finance, and student data across seven colleges and two campuses through the company’s Human Capital Management, Financial Management, and Student systems. This step will ensure modernization of the student experience with mobile-friendly tools and provide real-time insights to the university, driving smarter decisions campus-wide.
Meanwhile, Workday, Inc. (NASDAQ:WDAY), on July 10, launched a subsidiary for the U.S. government, supporting modernization efforts across federal agencies. The subsidiary will tailor the company’s secure, AI-driven cloud platform to meet the government’s needs. With the successful implementation of its platforms in the Departments of Energy and Defense already, WDAY is strengthening its footprint in the government’s tech landscape.
Serving global corporations, universities, and now, government entities, Workday, Inc. (NASDAQ:WDAY) offers AI-driven enterprise cloud applications, particularly for finance, HR, and student segments. It is one of the best ESG stocks.
10. Eaton Corporation plc (NYSE:ETN)
Number of Hedge Funds: 85
Eaton Corporation plc (NYSE:ETN) is among the 12 Best Ethical Companies to Invest in 2025.
Investor confidence is growing in Eaton Corporation plc (NYSE:ETN), with KeyBanc increasing its price target on the company from $355 to $410. This represents a 6.52% upside potential. The company’s share price, currently at $384.90, has risen 12.13% and 15.98% on a monthly and YTD basis, respectively. Amid this strong momentum, this price revision reflects its growth potential in the intelligent power management solutions market.
Furthermore, Eaton Corporation plc (NYSE:ETN)’s Board of Directors announced a quarterly dividend of $1.04, payable on August 22, 2025. The company has paid dividends every year since 1923, demonstrating its financial strength and long-term reliability.
By designing and delivering electrical, hydraulic, and mechanical solutions, Eaton Corporation plc (NYSE:ETN) has made itself a leader in the intelligent power management solutions market, helping industries improve efficiency, safety, and sustainability. It is one of the best ESG stocks.
9. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Funds: 91
Lam Research Corporation (NASDAQ:LRCX) secures a place on our list of the 12 Best Ethical Companies to Invest in 2025.
On July 21, 2025, UBS increased its price target on Lam Research Corporation (NASDAQ:LRCX) from $95 to $120, maintaining a ‘Buy’ rating. This revision comes amid growing optimism for the company’s Q4 performance. The analyst attributed the optimism to ongoing NAND equipment upgrades by Samsung, potential upside from TSMC, and strong demand out of China.
Furthermore, the analyst expressed a positive outlook on the wafer fabrication equipment (WFE) market environment and Lam Research Corporation (NASDAQ:LRCX)’s positioning. Therefore, with investments ramping up globally in the semiconductor market, LRCX seems to be well-positioned to capitalize on the chipmaking demand surge.
Lam Research Corporation (NASDAQ:LRCX), serving major foundries and integrated device manufacturers worldwide, manufactures advanced semiconductor processing equipment for chip production. It is one of the best ESG stocks.
8. Intel Corporation (NASDAQ:INTC)
Number of Hedge Funds: 91
Intel Corporation (NASDAQ:INTC) is one of the 12 Best Ethical Companies to Invest in 2025.
On July 24, 2025, Intel Corporation (NASDAQ:INTC) reported its financial performance for Q2, surprising Wall Street with a revenue of $12.86 billion that beat estimates of $11.92 billion. However, the company reported a net loss of $2.9 billion. Lip-Bu Tan, Intel’s new CEO, spoke about the company’s ongoing sweeping changes, including major layoffs and a sharp cutback in chip factory expansion, aimed at enhancing competitiveness and managing capital allocation more efficiently.
According to the CEO, Intel Corporation (NASDAQ:INTC) has already laid off 15% of its workforce, with plans to end the year with approximately 75,000 employees. Furthermore, planned chip factory projects in Germany and Poland have been halted, while the construction of the cutting-edge factory in Ohio will be slowed down, depending on the market demand and if big customers for the facility can be secured. Meanwhile, the company’s foundry business remains a challenge as it posted a $3.17 billion loss.
Intel Corporation (NASDAQ:INTC) reported a slight dip in its PC chip sales and a 4% increase in its data center revenue. The CEO expects a revenue of $13.1 billion for Q3, with the goal of breaking even as it regains market share.
Intel Corporation (NASDAQ:INTC) designs and manufactures computing products for tech companies worldwide. It is one of the best ESG stocks.
7. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Funds: 96
By earning a spot on Ethisphere’s 2025 list of the World’s Most Ethical Companies and attracting significant hedge fund interest, Micron Technology, Inc. (NASDAQ:MU) secures a place on our list of the 12 Best Ethical Companies to Invest in 2025.
With rapid growth acceleration in the space economy, Micron Technology, Inc. (NASDAQ:MU) announced the launch of the industry’s highest-density, radiation-tolerant SLC NAND flash memory on July 22, 2025. This memory chip is designed to survive space’s harsh environment, marked by radiation, extreme temperatures, and vacuum pressure. This makes the chip well-suited for advanced space missions.
With its memory technology already being used successfully in space, notably in NASA’s EMIT spectrometer mission, Micron Technology, Inc. (NASDAQ:MU) aims to expand its aerospace reach with this launch, supporting AI-driven, autonomous spacecraft with effective data storage solutions.
Micron Technology, Inc. (NASDAQ:MU) is the only major U.S.-based memory maker, delivering advanced DRAM, NAND, and NOR solutions with its Micron and Crucial brands. It is one of the best ESG stocks.
6. Pfizer Inc. (NYSE:PFE)
Number of Hedge Funds: 99
Pfizer Inc. (NYSE:PFE) is among the 12 Best Ethical Companies to Invest in 2025.
On July 24, 2025, Pfizer Inc. (NYSE:PFE) finalized the global licensing agreement with 3SBio, Inc. With this agreement, PFE acquired the exclusive rights to develop, manufacture, and commercialize 3SBio’s SSGJ-707, a bispecific antibody for PD-1 and VEGF. Leveraging 3SBio’s proprietary CLF2 platform, this innovative treatment enhances Pfizer’s oncology pipeline and solidifies its competitive edge in cancer research.
The antibody is presently undergoing clinical trials in China for non-small cell lung cancer (NSCLC) with promising interim Phase 2 results. It is also under clinical trials for gynecological tumors. By manufacturing the drug in the U.S. and expanding clinical trials globally, Pfizer Inc. (NYSE:PFE) aims to focus on Phase 3 studies for NSCLC and other solid tumors.
Pfizer Inc. (NYSE:PFE) will make an upfront payment of $1.25 billion to 3SBio and acquire a $100 million equity stake, as per the agreed terms. With up to $150 million in potential payments, Pfizer Inc. (NYSE:PFE) can exercise the option to extend the agreement for exclusive rights in China.
Operating globally, Pfizer Inc. (NYSE:PFE) discovers, develops, and sells biopharmaceuticals. It is one of the best ESG stocks.
5. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Funds: 106
ServiceNow, Inc. (NYSE:NOW) secures a place on our list of the 12 Best Ethical Companies to Invest in 2025.
On July 23, 2025, ServiceNow, Inc. (NYSE:NOW) reported financial results for Q2, beating guidance across all areas. The company reported subscription revenues of $3.11 billion, a 22.5% YoY growth, while its total revenues reached $3.22 billion, increasing at a similar growth rate. Furthermore, its remaining performance obligations reached $10.92 billion, an increase of 24.5%. Meanwhile, its customer base expanded with a 30% increase in customers, generating $20 million in annual contract value (ACV). It reported EPS of $4.09, beating expectations by 14.63%.
Looking ahead, analysts remain positive following the company’s strong quarter. On the same day as the earnings release, Jefferies increased its price target on ServiceNow, Inc. (NYSE:NOW) from $1,025 to $1,150, maintaining a ‘Buy’ rating. Stifel also increased its target to $1,200 on the same day.
With its Now platform, ServiceNow, Inc. (NYSE:NOW) offers a cloud-based solution for digital workflows globally. It is one of the best ESG stocks.
4. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Funds: 119
Eli Lilly and Company (NYSE:LLY) is among the 12 Best Ethical Companies to Invest in 2025.
Eli Lilly and Company (NYSE:LLY) is experiencing a strong analyst sentiment amid its expanding role in cutting-edge treatments. On July 18, Leerink Partners maintained its ‘Buy’ rating on the company, citing growth potential through the GLP-1 receptor agonist (GLP-1RA) space. According to a new JAMA study, GLP-1RAs, like Eli Lilly’s ‘tirzepatide’ medication, not only improves blood sugar control but also reduces the risks of dementia, stroke, and death in adults with type 2 diabetes and obesity.
These research findings hold the potential to boost optimism ahead of results from Novo Nordisk’s Alzheimer’s trials. If the trial results are positive, it could benefit the company’s positioning in neurology. Having a strong foothold in both the incretin and Alzheimer’s markets, Eli Lilly and Company (NYSE:LLY) is poised for future growth.
On the same day, Jefferies also maintained a ‘Buy’ rating, setting its price target at $1,057. Eli Lilly and Company (NYSE:LLY) is trading at $805.43 at the time of writing.
Operating globally, Eli Lilly and Company (NYSE:LLY) discovers, develops, and markets human pharmaceuticals. It is one of the best ESG stocks.
3. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Funds: 140
Salesforce, Inc. (NYSE:CRM) secures a place on our list of the 12 Best Ethical Companies to Invest in 2025.
Salesforce, Inc. (NYSE:CRM) is demonstrating a mixed performance as of the time of writing. The stock last closed at $268.35, an increase of 1.74% from the previous trading day. The stock outperformed the broader market, which returned 0.80%. Meanwhile, the stock has fallen 1.28% over the past month, underperforming both the technology-Software Application industry and the market, which gained 1.8% and 4.5%, respectively.
However, analysts have expressed optimism regarding the company’s future, projecting earnings of $2.77 per share for the upcoming quarter, an 8.2% increase on a YoY basis. On the other hand, full-year earnings and revenue are projected to increase by 10.78% and 8.64%, respectively. At the same time, Salesforce, Inc. (NYSE:CRM) is trading at a forward price-to-earnings ratio of 23.64x, a discount compared to the industry average of 27.42x.
Previously, on July 16, 2025, Citizens JMP maintained a ‘Market Outperform’ rating on Salesforce, Inc. (NYSE:CRM) with a price target of $430, citing future growth driven by the company’s AI and cloud services.
Offering Agentforce, Data Cloud, Salesforce Starter, and Tableau, Salesforce, Inc. (NYSE:CRM) provides customer relationship management (CRM) technology, bridging companies and customers. It is one of the best ESG stocks.
2. Mastercard Incorporated (NYSE:MA)
Number of Hedge Funds: 155
Mastercard Incorporated (NYSE:MA) secures a place on our list of the 12 Best Ethical Companies to Invest in 2025.
Ahead of its Q2 earnings, Truist decreased its price target on Mastercard Incorporated (NYSE:MA) from $640 to $612, maintaining a ‘Buy’ rating, reflecting its continued confidence in the stock. While the Fintech sector has lagged behind the broader market’s 6% gain with just a 2% gain in 2025, the analyst anticipates growth ahead.
Stablecoins and crypto are gaining investor attention, and they will be discussed in the upcoming earnings calls, according to the analyst. With these discussions, companies are expected to explain how these digital assets could impact the payments landscape.
While the short-term outlook may seem shaky for Mastercard Incorporated (NYSE:MA), emerging innovations in the sector continue to attract investor interest.
Mastercard Incorporated (NYSE:MA), based in the U.S., offers transaction processing and other related products and services. It is one of the best ESG stocks.
1. Visa Inc. (NYSE:V)
Number of Hedge Funds: 165
Visa Inc. (NYSE:V) is one of the 12 Best Ethical Companies to Invest in 2025.
On July 16, 2025, Visa Inc. (NYSE:V) expanded its four-decade-long partnership with ICBA Payments, the payments arm of the Independent Community Bankers of America. Under the partnership, both will work toward empowering local banks with modern payments tools like contactless cards, digital wallet tokenization, and real-time payments through Visa Direct. With this, both entities aim to enhance financial access and competitiveness for community banks across the country. ICBA Payments supports over $43 billion in card transactions and has issued 10 million cards.
Bill Dobbins, senior vice president and head of U.S. enablement at Visa, stated,
“Together, we’re helping community banks deliver modern, secure financial experiences that drive economic opportunity and strengthen the neighborhoods they serve.”
Meanwhile, Truist Securities decreased its price target on Visa Inc. (NYSE:V) from $400 to $397, maintaining a ‘Buy’ rating. Despite the price target reduction and recent underperformance of the fintech sector, the firm cited optimism regarding the company’s strong fundamentals and promising outlook for the fintech sector.
Visa Inc. (NYSE:V) is a global payment technology company, offering credit, debit, and prepaid card products, and VisaNet, a transaction processing network. It is one of the best ESG stocks.
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