© 2020 by Saroj Investments, LLC. 

5 stocks If you care about Climate change

02.03.2020

 

 

 

Emotions and investments don’t go together very well. Quoting Warren Buffet, “If you can’t control the emotions you can’t control your money”. Some of my investor friends totally have good control over their emotions and know what to buy/sell and when to buy/sell. On the other hand, a few friends only invest in specific stocks to support the ethics and values that aligns with their own values and emotions. I thought this might be a list for awareness on companies that support actions taken towards Climate Change – an initiative which a lot of people can associate with. This is NOT a financial advice. I like these based on the approaches these companies have taken to address some of the concerns addressed in climate change movement.

 

1. Green Transportation - Tesla, Inc (TSLA) – Tesla is a manufacturer of zero-emission cars. Elon Musk is one of the best evangelists of supporting the Climate change movement. He once said - "We're really playing a crazy game here with the atmosphere and the oceans. We're taking vast amounts of carbon from deep underground and putting this in the atmosphere — this is crazy. We should not do this. It's very dangerous." I can’t agree enough with him.

To date Tesla claims to have saved ~4 million tons of carbon Dioxide emission in US itself. 

 

2. Water - American Water Works (AWK) – American Water Works is one of the largest and the most geographically diverse U.S. publicly traded water and wastewater utility company providing service to 14 million people in 46 states. There is an increasing need for cleaning and recycling wastewater and to use it for other industrial purposes. American Water Works provides such water operations. American Water Works has also consistently worked towards the energy efficiency and reducing the carbon footprint. They have an Innovation Development program which focuses on testing new approaches and technologies to create greater efficiencies in water reuse, desalination, wastewater operations, and bioenergy. 

 

3. Solar Energy - Guggenheim Solar ETF (TAN) : There are a bunch of companies focus on solar technologies. But it’s hard to identify which one is the best because they all are working towards better technologies for renewal solar energy. Hence an investment in an ETF like this one would support multiple the renewal energy providers. To get more information on the listed companies please refer to https://www.zacks.com/funds/etf/TAN/holding

 

4. Pollution Control - Fuel-Tech (FTEK) – Fuel Tech is a leading technology company engaged in the worldwide development, commercialization and application of state-of-the-art proprietary technologies for air pollution control, process optimization, combustion efficiency, and advanced engineering services. These technologies enable customers to operate in a cost-effective and environmentally sustainable manner.

 

The company developed the Air Pollution Control (APC) technology which focuses on Nitrogen oxide reduction. This technology has established Fuel Tech as a leader in nitrogen oxide reduction, with over 1,000 units installed worldwide, where coal, fuel oil, natural gas, municipal waste, biomass, and other fuels are utilized. 

 

I am personally concerned with the pollution in major cities. Whenever I have traveled to cities like New York, Mumbai, Delhi, etc. I have experienced pollution and lack of clear visibility. It is so concerning that I feel that there is a strong need for the world to invest in much needed pollution control technologies like APC.

 

5. Waste Reduction - Waste Management (WMI) Waste Management, is the leading provider of comprehensive waste management environmental services in North America. Through its subsidiaries, the company provides collection, transfer, recycling, resource recovery, and disposal services. It is also a leading developer, operator and owner of landfill gas-to-energy facilities in the United States.

 

In 2019, Waste Management was awarded  “A” Grade for the 3rd year in a row by Carbon Disclosure Project(CDP) for their data quality and efforts towards the climate change initiative. The company achieved this grade because of its effort to cut emissions, mitigate climate risks and develop the low-carbon economy. It has helped the climate change initiative in the following 5 ways (A) –

a.      landfill methane emissions

b.      reduction in industrial energy use and emissions due to recycling and waste reduction

c.      energy recovery from waste

d.      carbon sequestration in forests due to decreased demand for virgin paper; and

e.      energy used in long-distance transport of waste

 

These are just my views. None of this is an investment advice. Please use your own analysis and your own thought process before investing.

 

Reference –

A)     https://www.tandfonline.com/doi/abs/10.1080/13549830050009373?journalCode=cloe20

B)     https://amwater.com/

C)     https://www.tesla.com/carbonimpact

D)     https://www.fueltech.net/

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