{"id":3369,"date":"2025-01-02T08:32:29","date_gmt":"2025-01-02T08:32:29","guid":{"rendered":"https:\/\/bridgewise.com\/?p=3369"},"modified":"2025-01-02T08:32:29","modified_gmt":"2025-01-02T08:32:29","slug":"5-esg-stock-highlights-for-2025","status":"publish","type":"post","link":"https:\/\/bridgewise.com\/blog\/5-esg-stock-highlights-for-2025\/","title":{"rendered":"A Sustainable New Year &#8211; 5 ESG Stock Highlights for 2025"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Happy new year! It&#8217;s the first days of 2025 and with a new year comes new year&#8217;s resolutions. While many of us will be focussed on improving ourselves as individuals, as a global community we should resolve to take care of our shared home and to live in a more sustainable way.<\/span><\/p>\n<p>The drive for sustainability is the primary factor encouraging m<span style=\"font-weight: 400;\">any public corporations to adopt ESG (environmental, social, and governance) practices as part of their everyday operations. Collectively, these companies are known as <\/span><a href=\"https:\/\/bridgewise.com\/blog\/how-sustainability-is-impacting-capital-markets\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">sustainable businesses<\/span><\/a><span style=\"font-weight: 400;\">, and they have attracted enormous attention in the investment industry. Starting in the <\/span><a href=\"https:\/\/www.thecorporategovernanceinstitute.com\/insights\/lexicon\/what-is-the-history-of-esg\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">mid-2000s<\/span><\/a><span style=\"font-weight: 400;\"> as a niche opportunity, the ESG investments market has exploded to include <\/span><a href=\"https:\/\/www.morningstar.com\/sustainable-investing\/story-first-esg-index\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">more than 50,000 indexes<\/span><\/a><span style=\"font-weight: 400;\"> and a projected market cap of <\/span><a href=\"https:\/\/www.bloomberg.com\/company\/press\/global-esg-assets-predicted-to-hit-40-trillion-by-2030-despite-challenging-environment-forecasts-bloomberg-intelligence\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">$40 billion by 2030<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b>Making Sense of Sustainable Businesses<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">For investment professionals who want to get in on the action, that\u2019s a lot of ground to cover. Obviously, the learning curve starts by knowing the <\/span><a href=\"https:\/\/bridgewise.com\/blog\/the-abcs-of-esg-analysis\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">basics of ESG analysis<\/span><\/a><span style=\"font-weight: 400;\">. But even ESG wizards are challenged by the fact that a large portion of companies are <\/span><a href=\"https:\/\/www.visualcapitalist.com\/largest-stock-exchanges-in-the-world\/#google_vignette\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">not covered by the popular indexes<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Any informed investor wants to know what\u2019s happening inside the index. Are individual stock picks clustered around a shaky foundation? Having the ability to analyze the ESG performance &#8211; and other indicators &#8211; of specific companies is vital for selecting the right risk level for your clients.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s where <a href=\"https:\/\/bridgewise.com\/blog\/what-is-financial-ai\/\" target=\"_blank\" rel=\"noopener\">AI in finance<\/a> makes its mark. The Bridgewise platform uses artificial intelligence to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Analyze financial factors of companies across the globe, regardless of language or reporting standards<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Provide both quantitative and qualitative analyses across industries and deep into the data<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Minimize paradox of choice issues with a customizable, user-friendly dashboard that boils down all that information into something understandable<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Bridgewise has applied all of these capabilities to ESG analysis, on top of traditional investor metrics.\u00a0<\/span><\/p>\n<h2><b>Five Factors, Five Choices<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">To illustrate, let\u2019s take a look at just one of the ways in which Bridgewise <a href=\"https:\/\/bridgewise.com\/blog\/investment-intelligence-2-0\/\" target=\"_blank\" rel=\"noopener\">investment intelligence<\/a> segments stocks. The \u201cscreener\u201d dashboard can be filtered to highlight ESG performance, but that comes with four other dimensions that every investment professional needs to know about. As a result, you can quickly glance at top performers per category, and then drill down from there.<\/span><\/p>\n<h3><b>5 Leading ESG Stock Profiles<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">With the new year, we\u2019ve highlighted below five leading sustainable companies to watch in 2025. We identified them by adjusting the filters on the Bridgewise screener dashboard to \u201cVery Good,\u201d according to each category.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">Top ESG Performer<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Microsoft (MSFT) needs no introduction. With all other factors being equal, Microsoft looks pretty good overall. It is average across growth, value, and cash flow, with a fundamental rating of \u201cHold\u201d. If you are a conservative investor who wants a strong ESG effort, MSFT is a great pick.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">Strong Growth<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Prosus N.V. (PRX) is a Dutch company that operates Internet platforms across a number of industries such as fintech, retail, and food delivery. In addition to a high ESG score, Prosus\u2019 growth numbers (e.g. ROE and share price performance) are very healthy, leading to an \u201coutperform\u201d recommendation.\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">Value<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">If you\u2019re looking for a nice jump in stock price, Abbott Laboratories (ABT) might be the game for you. It has both outstanding ESG ratings and value factors, indicating that the share price looks a bit too low at the moment. Bridgewise gives it a \u201cHold\u201d rating.\u00a0\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">Cash Flow<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Standard and Poor\u2019s Global (SPGI) brand means financial stability to a lot of investors, and so it is with their excellent cash flow numbers. Combined with great ESG stats, SPGI looks good for investors who are interested in stability, reflected in its \u201cHold\u201d rating.\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">Fundamental Rating<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Remember Ericsson (ERIC B), the hot-then-not stock of the early mobile phone boom years? It\u2019s back. Aside from an outstanding ESG score, Ericsson gets a very high \u201cBuy\u201d rating from Bridgewise\u2019s AI-powered analysis. It also looks good for value and cash flow.\u00a0<\/span><\/p>\n<h3><b>What Are Your Top Five?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">No matter what you\u2019re looking for in sustainable stocks, the Bridgewise platform will expand your choices, optimize your analysis, and make great investments easy to pick. Get started by <\/span><a href=\"https:\/\/bridgewise.com\/request-a-demo\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">viewing our demo<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0\u00a0\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With a new year comes a new focus on sustainability; here are 5 ESG highlights for 2025.<\/p>\n","protected":false},"author":8,"featured_media":3372,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13,27],"tags":[38,85,39],"class_list":["post-3369","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-insights-and-trends","tag-ai-in-finance","tag-esg","tag-sustainability"],"acf":[],"_links":{"self":[{"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/posts\/3369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/comments?post=3369"}],"version-history":[{"count":4,"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/posts\/3369\/revisions"}],"predecessor-version":[{"id":3374,"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/posts\/3369\/revisions\/3374"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/media\/3372"}],"wp:attachment":[{"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/media?parent=3369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/categories?post=3369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/tags?post=3369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}