3 socially responsible stocks to watch in December CMC Markets
Impact Investing Forum 2022
London. Dec 07-08, 2022.
Environmental, Social, and Governance (ESG) stocks have continued to gain popularity in 2021, and with good reason too. With that in mind, here are three ESG companies that you may take an interest in.
This article was originally written by MyWallSt. Read more insights from the MyWallSt team here.
ESG stocks to watch
Warby Parker (NASDAQ: WRBY) is an e-commerce eyeglasses company brand new to the markets, only making its public debut in September 2021. However, it has been in business for 10 years now, and since its inception, it has put an emphasis on putting the good of all ahead of just company profits. It’s actually a certified public benefit company that works with non-profits organizations through its ‘Buy a Pair, Give a Pair’ program, in order to bring eyeglasses to those who can’t afford them.
Traditionally, the eyeglasses market is dominated by just a couple of large players such as Luxottica, which actually delisted from the New York Stock Exchange (NYSE) in 2017. But, in a changing environment, Warby Parker is distinguishing itself to customers by offering more competitive pricing on eyewear, virtual try-on’s via its app prior to ordering, and defining itself as an ethical and socially responsible consumer-focused company.
Beyond Meat (NASDAQ: BYND) is one for animal lovers. As you might have guessed, it’s a meat-substitute company selling plant-based meat (PBM) products that replicate the taste and texture of meat for those who are actively vegetarian or vegan, as well as being an option for those attempting to cut down on meat consumption in general.
Beyond Meat is the biggest name in the plant-based meat sector, which was once a niche market. However, with the growth in the PBM movement, new (and old) players such as Nestlé, The Very Good Food Company, Tattooed Chef, and Tyson Foods have joined the roster, in addition to its primary competitor Impossible Foods.
Beyond is differentiating itself by not only selling products in stores but also developing international partnerships with the likes of McDonald’s, Starbucks, and other foodservice brands. That being said, it has a long way to go before it can be seen as the go-to PBM brand, and it’s quite visible considering shares are down 38% year-to-date (YTD).
Allbirds (NASDAQ: BIRD) is another small-cap company new to the markets with a focus on sustainable clothing apparel, in particular, footwear. This strategy mimics that of popular private companies such as Patagonia and Timberland, and in a similar fashion, Allbirds is building a loyal consumer base.
Allbirds intends to be 100% carbon-neutral by 2030, by continuing to use recycled materials and regenerative resources to manufacture its products.
In its recent move towards athleisure apparel, Allbirds has significant heights to climb before competing with the likes of Nike, but a recent partnership with Adidas shows it is testing alternative strategies to break into new markets where competition is cut-throat.
Long-term investing encourages us not only to build wealth over time but also reminds investors of the importance of investing in companies that are making a difference and having a positive impact on society.
It’s always good practice to check out a company’s ESG stance before investing, so be sure to make use of websites, and even Yahoo Finance’s sustainability indicators when researching stocks.
MyWallSt gives you access to over 100 stock picks and the research to back them up. Our analyst team posts daily insights, subscriber-only podcasts, and the headlines that move the market. Start your free trial now!
Disclaimer Past performance is not a reliable indicator of future results.
CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.
*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.