Morgan Stanley says these stocks are making improvements on ESG that can also boost returns

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Morgan Stanley highlighted a 'rate of change' metric that gauges how much of an improvement a company is making on environmental, social and governance issues.

Morgan Stanley honed in on publicly traded companies that are improving on ESG in ways that can boost shareholder returns. Analyst Stephen Byrd's team highlighted a "rate of change" metric that gauges how much of an improvement a company is making on environmental, social and governance issues — and how that can help a business grow revenue and margins. These stocks also offer attractive risk-rewards, he said.

Pro then screened his list for U.S. stocks that are liked more broadly by Wall Street analysts. The screen filtered for stocks rated buy, or overweight, by more than 50% of analysts and have an average price target implying upside of more than 10% in the next 12 months. All data is from FactSet as of Wednesday. Here's the 10 rising starts that passed

Pro's screen: Energy and utilities stocks accounted for the bulk of the list. One of the companies, New Fortress Energy , has the the largest potential upside on the list at about 60%. Eighty-percent of analysts rate the stock a buy, FactSet data shows. Byrd pointed to the company's plans for a green hydrogen plant and a system for providing low-cost feedstock gas.

's Michael Bloom contributed to this report.

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ESG is similar to AI. Every company grows in the term to make themselves look cutting edge. I suspect most of the claims are nonsense.

RIP John Deere.

ESG is a scam.

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