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The 7 best climate change stocks to buy for 2023

The concept of the best climate change stocks to buy for 2023 strikes a critical ethical tone. According to several scientists and survey reports, human-made environmental impact has imposed many negative developments on our planet. To mitigate and hopefully reverse the consequences of past activities, we need to start acting now.

Unfortunately, there is a perception that even the best climate change stocks to buy will not be profitable. After all, in perhaps most circumstances, doing good requires great sacrifice. Yet McKinsey & Company claim the opposite. Essentially, sustainable businesses use fewer resources. In turn, this increased efficiency reduces operating budgets.

According to McKinsey, the aforementioned reduction could reach 60%. Therefore, going green can lead to turning green – as in green-colored Federal Reserve Notes. And on that note, below are the best climate change stocks to buy.

JNJJohnson & Johnson$163.42
BIRDall the birds$2.75

Unilever (UL)

Source: BYonkruud / Shutterstock.com

For those who follow Unilever (NYSE:UL) beyond its core business of providing various consumer goods, its ranking at the top of this list of best stocks to buy on climate change should come as no surprise. After all, the company likes to put its money where it talks about various positive initiatives.

At the height of the coronavirus pandemic, when deep historical issues came to the fore, Unilever stepped forward and committed to racial justice. A few years ago, Unilever joined with other organizations to promote peace in conflict areas. Notably, he doesn’t let the criticism of being “woke” stop him from doing what he believes is right.

Recently, Unilever released a statement that “[c]Climate change is now a climate crisis. To this end, it has announced various greening initiatives across its business and value chain. He also encouraged his partners and other organizations to promote net zero commitments. For those who want to invest and feel good, UL easily ranks among the best climate change stocks to buy for 2023.

Mondelez (MDLZ)

man's hand holding wads of cash

Source: Vova Shevchuk/Shutterstock.com

Well known for its confectionery, Mondelez (NASDAQ:MDLZ) has also received attention for its ethical principles. According to its website, Mondelez is committed to making its snacks the right way to both meet global conservation needs and serve its customers. To this end, Mondelez primarily focuses on sustainably sourced key ingredients.

However, what makes Mondelez one of the best climate change stocks to buy is that it doesn’t just focus on trees. On the contrary, it also offers programs to promote human rights. As the United Nations pointed out,[c]imate change has profound implications for a wide variety of human rights, including the rights to life, self-determination, development, food, health, water and sanitation and to housing.

Moreover, sustainable economies allow their citizens to make environmentally friendly choices without forcing them to choose between sustainability and subsistence. Another factor that favors MDLZ as one of the best climate change stocks to buy centers around sustainability. Currently, Wall Street analysts view Mondelez as a strong consensus buy.


Photo of the IBM (IBM) building seen through the canopy of a tree. The IBM logo is in large letters on the side of the building.

Source: shutterstock.com/LCV

For the past few years, I’ve beaten the table on a legacy tech company IBM (NYSE:IBM). Once a laggard in the broader tech ecosystem, the company has recently transformed by focusing more on relevant initiatives such as cloud computing. In addition, “Big Blue” pays a fairly large dividend, which makes it attractive in any circumstances.

However, IBM wears many hats, not least because it happens to be one of the best climate change stocks to buy. “To address the global climate emergency, we are using AI and hybrid cloud to accelerate the discovery of climate change mitigation and adaptation solutions. We improve carbon emissions performance through optimization and capture, and prepare businesses for the impact of climate change,” the company said on its website.

While pejorative criticism exists of woke companies going bankrupt, that may not be the case for IBM. According to Gurufocus.com, the market values ​​IBM at a forward multiple of 13.9. In contrast, the sector median is advancing several pings to 25.64. So you can get a bargain on one of the best climate change stocks to buy.

Disney (DIS)

The 7 best climate change stocks to buy for 2023

Source: Shutterstock

On the surface, entertainment giant disney (NYSE:SAY) presents a bit of a mixed bag when it comes to the best climate change stocks to buy. As a world famous company, people from all over the world visit its theme parks. Invariably, this leaves a significant carbon footprint. However, the company does everything in its power to provide a lasting experience for its customers.

Over the years, Disney has implemented various initiatives to reduce emissions. For example, the company’s Walt Disney World Resort has partnered with local utility partners to develop two new 75-megawatt solar facilities. Additionally, at Shanghai Disney Resort, the entertainment stalwart converted 100% of restrooms in their Team Disney Administration building from potable to non-potable water, saving 2.1 million gallons of potable water in 2021.

While DIS was beaten in 2022, the circumstances seem much more favorable this year, gaining 23% since opening in January. Additionally, Wall Street analysts view Disney as a strong consensus buy. Moreover, after a drop in hedge funds, the sentiment of these institutional players is positive.

Johnson & Johnson (JNJ)

Man holding stacks of money. Millionaire.

Source: Epic Cure / Shutterstock

One of the biggest names in the wider healthcare industry, Johnson & Johnson (NYSE:JNJ) generally provides investors with solid (but admittedly unattractive) stock market performance. Over the past year, stocks have fallen just over 2%. Yet this price action beat the benchmark stock index over the same period (which lost 10%). Thus, JNJ generally does not misdirect stakeholders.

Even better, when it comes to the best climate change stocks to buy, management offers several programs to support the environment. In addition to meeting urgent healthcare needs around the world, the company is also committed to helping reduce plastic waste. Additionally, the company’s consumer health unit has committed $800 million through 2030 to make its products more sustainable.

Currently, Wall Street analysts rate JNJ as a consensus Moderate Buy. Additionally, their average price target of $185 implies 10% upside potential. Plus, it’s hard to ignore both its forward yield of 2.69% and its 61 consecutive years of dividend increases.

Honda (HMC)

Cars on an urban highway driving at sunset

Credit: Anna Kraynova/Shutterstock

At first glance, it might be a bit strange considering the automaker Honda (NYSE:HMC) as one of the best climate change stocks to buy. After all, combustion automobiles obviously impose a carbon footprint. Also, Honda is arguably not the most aggressive in terms of pivoting to electric vehicles. That said, Honda’s legendary reliability helps reduce waste overall, which is good for the environment.

Also, I would be remiss if I didn’t point out that Honda has several electric vehicles planned in its future product portfolio. Additionally, the automaker is aiming for an ambitious goal of being carbon neutral for all company products and operations by 2050. It’s also worth noting that management is also looking to eliminate fatalities involving Honda motorcycles and cars. by the above-mentioned year. In other words, HMC ranks among the top climate change stocks because the underlying company puts people first.

Although Honda has become ubiquitous on American roads, it does not attract much attention from investors. Currently, there are no analysts covering HMC. That could change, however, as the automaker promotes some generally positive initiatives.

All the birds (BIRD)

A photo of the Allbirds sign outside a retail store in Livermore, California.

Source: Michael Vi/ShutterStock.com

While a shoe and apparel company all the birds (NASDAQ:BIRD) may be one of the best climate change stocks to buy, it is also incredibly risky in any other context. In the previous year, BIRD shed a horrendous 77% of equity value. To be fair, it’s up more than 25% in the year so far. Nevertheless, you will have to commit to the environment for this opportunity.

On the positive side, it could be possible that Allbirds represents a new brand of capitalism; that is, to offer a framework where the pursuit of profitability does not necessarily exclude positive results for the planet. It has an ambitious goal of halving its carbon footprint by the end of 2025. By 2030, it seeks to reduce its carbon footprint to near zero.

Interestingly, despite the turmoil Allbirds has endured over the past year, analysts remain largely unfazed. According to Wall Street experts, they consider BIRD a consensus Moderate Buy. Even more impressively, their average price target implies almost 90% upside potential.

As of the date of publication, Josh Enomoto had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto helped negotiate major contracts with Fortune Global 500 companies. Over the past several years, he has provided critical and unique insights to investment markets, as well as various other industries including law, construction management and healthcare.


Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
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