As investors, we are always looking to beat the market. As such, we are deeply interested in finding ways that can give us a leg up. Given that studies have found stocks with higher ESG ratings tend to outperform the market, ESG stocks are likely worth considering as potential additions to a portfolio. What are ESG stocks? These are typically companies with greater social responsibility in terms of the environment and how they treat their workers. For example, they may have active efforts in place to lower their carbon emissions, or they might focus on paying their workers higher wages in addition to maintaining a safe and supportive work environment free from discrimination.

But why would efforts like this have any impact on how the company’s stock performs? Well, if a management team goes through the effort to ensure these policies are put in place, they are likely a strong and well-coordinated team with earnings growth plans and more of the financial areas well planned out. That’s why in this article, we will provide you with three ESG companies worth considering to add to your portfolio.

Adobe (ADBE)

Adobe (NASDAQ:ADBE) is a company that provides a wide range of technology products. Those include its popular software tools like Photoshop and Illustrator. The stock is up over 68% in the past year with an average one-year Yahoo! Finance analyst price target of $652.49, far above the current price of around $603.

In terms of ESG, the stock is stellar. Its MSCI ESG Rating is AAA, which puts it near the top of its sector. It’s the highest rating a company can receive. That highlights how Adobe is at the forefront in terms of social responsibility. Even though the stock has been up greatly in the past year, if we take a look at its P/E ratio of 37.5x, the company is likely to be fairly valued. Its five-year average P/E ratio is 39.7x, meaning the company is in line with what the market usually values it at. Combined with its explosive growth potential in the AI industry and strong ESG metrics, the company is worth looking at to add to your portfolio.

Qualcomm (QCOM)

Qualcomm (NASDAQ:QCOM) makes a wide variety of products, including semiconductor chips, and is a key player in the 5G market. The stock is up over 20% in the past year. With analysts expecting EPS to grow by double digits for the next few years, the stock growth should only continue.

Let’s take a look at the stock’s ESG rating. Its MSCI ESG Rating is A, the top 16% in its sector. It is one of the highest ratings a company can receive. This highlights how Qualcomm is one of the top companies in the semiconductor industry and leading the way.

Analyzing its valuation, the company has a P/E ratio of 18.18x, which is over 18% lower than the sector median of 22.30x. That indicates the company is likely undervalued with respect to its peers and has an upside assuming reversion to the mean. With this potential and great ESG metrics, the company should be a strong consideration for investors. 

Dorian LPG (LPG)

Dorian LPG (NYSE:LPG) is a leading liquefied petroleum gas company. It was up around 122% versus its Energy Sector’s growth of -3.12%. Due to capitalizing on geopolitical tensions in the Red Sea, it has risen as one of the most covered growth small caps covered by Wall Street analysts. Yahoo! Finance analysts project a one-year price target between an average of $37.34 to a high of $50.

Looking at its ESG, Dorian LPG represents how a company in a seemingly harmful industry can champion all three pillars of ESG. With zero-carbon collaborations with companies like the Mærsk Mc-Kinney Møller Center, and the development of uniquely large vessels to promote clean transportation, LPG stands with a dominant MSCI Rating of AAA. It’s also much less harmful to the environment relative to other shipping companies. With a strong commitment to regulatory policy and adherence to social governance, Dorian LPG is an interesting energy stock pick that would fare well in any ESG-conscious investor’s portfolio.

On the date of publication, Ian Hartana and Vayun Chugh did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.