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7 Best Ethical Companies To Invest In According to Reddit

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Ethical investing involves choosing investments based on ethical principles, such as environmental, religious, or social values. Unlike socially conscious investing, which follows a specific set of guidelines, ethical investing is more individualized. Investors typically avoid being involved in gambling, alcohol, or firearms, and carefully research to make sure their investments align with their values.

Other stocks that are avoided by ethical investors include the shares of companies where employees are mistreated, have high gender parity, or discriminate against employees due to their race, religion, or sexual orientation. Environmentally conscious companies are also a huge part of ethical investing.

Is Ethical Investing the Future?

A 2022 report by Stamford University noted that the younger generation considers ethical investing quite crucial. A 2022 survey of 2,470 individual investors, conducted by Stanford University’s Rock Center for Corporate Governance, found significant differences in Environmental, Social, and Governance (ESG) preferences based on age and wealth. Younger and wealthier investors are more likely to support ESG initiatives, even at the expense of returns, while older and less wealthy investors are generally opposed.

Over recent years, support for ESG proposals has surged, with average support among S&P 500 companies increasing from 18% in 2012 to 35% in 2021, and the number of proposals passed rising from 0 to 28. The survey found that 70% of young investors (18-41 years old) are very concerned about environmental issues, compared to only 35% of older investors (58+ years old). Similarly, 65% of young investors are very concerned about social issues, versus 30% of older investors. When it comes to governance, 64% of younger investors express significant concern, while only 28% of older investors do.

Moreover, 86% of older investors would not give up any or only a trivial amount of returns for carbon emission reductions, while 64% of younger investors would give up moderate or large amounts. Additionally, 91% of older investors are unwilling to sacrifice returns for workplace diversity improvements, compared to 62% of younger investors who are willing to do so.

The survey also found that investor attitudes towards ESG differ across fund companies. Investors in State Street and Invesco funds exhibit nearly twice the concern for environmental issues compared to those in Fidelity funds. A significant percentage of investors in Fidelity (40-45%) and Vanguard funds are unwilling to forfeit returns for ESG, while a smaller percentage in American Funds and BlackRock (25-30%) share this reluctance.

Despite these differences, 83% of investors across all demographics believe that fund managers should consider their views when voting on ESG issues. The results suggest that fund managers might need to allocate votes on a proportional basis to reflect the diverse preferences of their investor base.

7 Best Ethical Companies To Invest In According to Reddit

Our Methodology

For this article, we scoured through several threads to discover which companies were considered ethical according to the users. We narrowed down the list to 7 stocks that were most widely mentioned and used the hedge fund sentiment of each stock as a tie-breaker. The companies are listed in ascending order of the number of hedge fund holders as of the second quarter of 2024. The hedge fund data was taken from our database of over 900 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

7. HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI)

Number of Hedge Fund Holders: 16

HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI), previously known as Hannon Armstrong Sustainable Infrastructure Capital, Inc., is a company focused on climate investments. It collaborates with clients and provides capital to support the transition to cleaner energy. The company invests in behind-the-meter (BTM) building or facility-specific distributed energy projects, which are tailored to reduce energy consumption or costs for specific buildings or facilities. It is one of the best companies to invest in according to Reddit.

Additionally, it supports grid-connected renewable energy initiatives, including solar, solar-plus-storage, and onshore wind projects, aimed at generating cleaner power. It also invests in various Fuels, Transport & Nature projects, such as fleet decarbonization and ecological restoration efforts. The company carries out a range of investment approaches, including equity stakes, joint ventures, land ownership, and lending activities.

At a stake value of $58.42 million, 16 hedge funds held positions in HA Sustainable Infrastructure (NYSE:HASI) in the second quarter. As of Q2, Encompass Capital Advisors is the top shareholder in the company and has a position worth $18.76 million.

HA Sustainable Infrastructure (NYSE:HASI) is known for its innovative approach to climate investments and its expanding portfolio in sustainable infrastructure. The company has distinguished itself by targeting projects that aim to reduce or offset greenhouse gas emissions. According to the company’s website, it is the first publicly traded U.S. company to report the avoided emissions from each investment using its unique CarbonCount metric.

Since its initial public offering in 2013, it has channeled over $12 billion into assets that collectively prevent 7.4 million metric tons of carbon emissions, which is equivalent to removing the emissions from over 1.6 million passenger vehicles. Additionally, these investments help conserve more than 7 billion gallons of water each year. In 2023 alone, the company invested $2.3 billion in climate solutions. It is one of the best ethical companies to invest in.

HA Sustainable Infrastructure’s (NYSE:HASI) recent performance is evidence of the effective execution of its mission. For the second quarter, the company reported non-GAAP EPS of $0.63, which surpassed expectations by $0.07. Moreover, the company reported revenues of $94.52 million.

During the quarter, managed assets of the company grew by 21% year-over-year to $13.0 billion, while its portfolio expanded by 27% to $6.2 billion. The yields on new investments made during the first half of 2024 were over 10.5%, and the total portfolio yield stood above 8.0% at the end of the quarter, which reflects its ability to secure high returns.

As the demand for clean energy rises, due to advancements in AI technologies, and the growing adoption of electric vehicles, the company is well-positioned to capitalize on the shift from traditional oil markets to renewable electricity markets. Its renewable energy investments currently reduce CO2 emissions by about 8 million metric tons annually. This combination of effective climate action and robust financial performance suggests that it is well-placed to continue thriving in the evolving energy landscape.

6. Ecolab Inc. (NYSE:ECL)

Number of Hedge Fund Holders: 42

Ecolab Inc. (NYSE:ECL) is a leading global provider of water treatment, purification, and hygiene solutions. Initially, the company focused on innovative cleaning products but has since become a major player in the water, hygiene, and energy sectors. The company serves various industries, including food processing, healthcare, hospitality, and manufacturing, by offering technology and services that ensure water quality and safety.

Ecolab’s (NYSE:ECL) commitment to sustainability and innovation has solidified its position as a trusted partner in improving operational efficiencies and environmental outcomes for businesses worldwide. In 2024, it was recognized as one of the World’s Most Ethical Companies by Ethisphere for the 18th consecutive year. It is one of the best ethical companies to invest in.

Ethisphere Institute is a for-profit organization that specializes in defining, measuring, and promoting corporate ethical standards. The firm is well-known for its annual “World’s Most Ethical Companies” awards, which recognize organizations excelling in ethical business practices.

Moreover, Ecolab’s (NYSE:ECL) history is marked by key developments, from early sustainability efforts in the 1920s to pioneering initiatives like the Water Risk Monetizer and 3D TRASAR Technology. The company remains committed to diversity, equity, and inclusion, and has set ambitious 2030 Impact Goals to further its positive impact on the environment and society.

By 2030, the company aims to conserve 300 billion gallons of water annually, which is equivalent to the daily drinking water needs of over 1 billion people. It plans to reduce its greenhouse gas emissions by 50% while helping customers avoid 6 million metric tons of CO2 emissions each year.

Ecolab (NYSE:ECL) is also focused on enhancing food safety and reducing hospital-acquired infections and has a goal to prevent 1.7 million foodborne illnesses and 10 million hospital-acquired infections annually. Additionally, the company is committed to nurturing diversity, equity, and inclusion. It is striving to increase the representation of women and black, Indigenous, and other people of color executives by 50% and ensuring that 35% of all new hires are people of color.

As of the second quarter of 2024, 42 hedge funds held Ecolab (NYSE:ECL) shares worth $2.82 billion. As of June 30, the Bill & Melinda Gates Foundation Trust is the company’s most significant shareholder with 5.22 million shares worth $1.24 billion.

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

Number of Hedge Fund Holders: 49

Waste Management, Inc. (NYSE:WM) stands as a prominent figure in the North American waste management and environmental services sector. Over the years, the company has evolved into a comprehensive waste management company with a vast operational footprint.

Collection operations are the primary revenue driver for Waste Management (NYSE:WM), which involves the pickup and transport of waste to transfer stations, material recovery facilities, or landfills. Approximately 70% of collected waste is processed at its landfills. It is among our best ethical companies to invest in.

According to its latest sustainability report, in 2023, Waste Management (NYSE:WM) recovered over 15 million tons of material, with a significant increase in recovery capacity and a 3% boost in material recovery compared to the previous year. Key initiatives included opening or upgrading eight recycling facilities and adding nine organics processing sites, which expanded its network to 102 recycling and 49 organics facilities. It is one of the best ethical companies to invest in.

The company is making efforts to enhance recycling, including leveraging advanced technologies and expanding access through new facilities and digital tools. It is investing over $1.4 billion in new and upgraded recycling infrastructure by 2026 and is aiming to add 2.8 million tons of capacity annually. The company’s focus on consumer education through the Recycle Right program and initiatives like textile sorting and collaboration with brands like REPREVE highlight its commitment to sustainability.

The company is also working to grow domestic markets for recycled commodities and improve recycling streams. With new facilities and enhanced technologies, the company plans to broaden access to recycling services and support community sustainability goals.

In the second quarter, 49 hedge funds had stakes worth $8.7 billion in Waste Management (NYSE:WM). Bill & Melinda Gates Foundation Trust is the company’s largest shareholder with 35.23 million shares worth $7.5 billion, as of the second quarter.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…