Billionaires Bullish on 10 Sustainable Investment Stocks

Ten Sustainable Investing Stocks Attracting Billionaires’ Attention

Sustainable investing has become a significant trend among billionaires, and we will explore ten stocks that have piqued their interest in this article. Sustainable investing goes beyond traditional financial analysis and also considers a company’s impact on the environment, society, and its stakeholders. These stakeholders include not only shareholders but also customers, employees, and other groups affected by the company’s operations.

ESG (Environmental, Social, & Governance) investing, which focuses on these factors, has attracted substantial investments. By the end of Q4 2021, an impressive $2.74 trillion had been invested in sustainable firms through exchange-traded funds (ETFs). However, the pandemic and economic disruptions in 2022 have slowed down the overall recovery of these funds.

While sustainable investing is primarily motivated by the desire to improve the world, investors are also keen on returns. Surprisingly, research indicates that the returns of high sustainability funds do not differ significantly from low sustainability funds. Some studies have even shown that investing in highly rated ESG companies may not necessarily lead to more stakeholder-friendly outcomes. However, sustainable practices have positively impacted the operations of large companies, such as The Coca-Cola Company, which reduced its water usage significantly between 2004 and 2015.

Among the top-rated ESG companies in 2022, Alphabet Inc., Intel Corporation, and Microsoft Corporation have shown commitment to sustainable practices. Intel saved billions of gallons of water in 2022, while Microsoft aims to be water positive and carbon neutral by the end of the decade.

Now, let’s delve into the top sustainable stocks that billionaires are investing in:

10. Ormat Technologies, Inc. (NYSE:ORA)
Nine billionaires invested in Ormat Technologies, a utility company focusing on power generation through geothermal and solar sources. The firm has been outperforming analyst EPS estimates and has gained the attention of prominent investors, including Ian Simm’s Impax Asset Management.

9. NextEra Energy Partners, LP (NYSE:NEP)
Nine billionaires also invested in NextEra Energy Partners, an energy company operating in natural gas and renewable power. The firm has ambitious plans to achieve Real Zero emissions by 2025 and is divesting natural gas assets to fund future growth.

8. NIO Inc. (NYSE:NIO)
Nine billionaires have invested in NIO Inc., an electric vehicle manufacturer based in Shanghai, China. While it is a significant player in the Chinese electric vehicle market, a slowdown in the Chinese economy has affected its operations.

7. KB Home (NYSE:KBH)
Ten billionaires invested in KB Home, an American construction company. As part of its sustainability efforts, KB Home has partnered with a nonprofit to preserve landscapes and forest habitats.

6. Sunrun Inc. (NASDAQ:RUN)
Ten billionaires also invested in Sunrun Inc., a solar power equipment provider serving residential customers in the U.S. The company is focusing on providing solar power equipment to affordable and public housing communities in California.

Other notable sustainable stocks on the billionaire radar include First Solar, Inc. (NASDAQ:FSLR), Tesla, Inc. (NASDAQ:TSLA), and Enphase Energy, Inc. (NASDAQ:ENPH).

To compile this list, data from the Invesco MSCI Sustainable Future ETF was used, and the number of billionaires investing in each company was determined as of Q1 2023.

In conclusion, sustainable investing has gained significant traction among billionaires, with various companies showing promising potential for both positive environmental and financial impact. These top sustainable stocks offer investors opportunities to align their investments with their values while potentially reaping substantial returns.