This podcast includes covering these articles: “These 50 Canadian corporate citizens are a cut above,” by Rick Spence; “3 ESG Stocks to Buy With Focus Growing on Net-Zero,” by Abhinab Dasgupta; “2 Renewable Energy Stocks (With Dividends) That Could Put You in the Green,” by Jitendra Parashar; and “3 ESG Stocks in Focus for the Socially Responsible Investor,” by Tirthankar Chakraborty. And more…

Transcript & Links, Episode 110, July 14, 2023

Hello, Ron Robins here. So, welcome to my podcast episode 110 titled “These ESG Stocks Are A Cut Above.” It’s presented by Investing for the Soul. Investingforthesoul.com is your site for vital global ethical and sustainable investing mentoring, news, commentary, information, and resources. And look at my newly totally revised website at investingforthesoul.com!

So, remember that you can find a full transcript, and links to content – including stock symbols and bonus material – on this episode’s podcast page located at investingforthesoul.com/podcasts.

Also, a reminder. I do not evaluate any of the stocks or funds mentioned in these podcasts, nor do I receive any compensation from anyone covered in these podcasts. Furthermore, I will reveal to you any personal investments I have in the investments mentioned herein.

Additionally, quotes about individual companies are brief. Please go to this podcast’s webpage for links to the actual articles for more company and stock information. Also, some companies might be covered more than once and there are also 5 article links below that time didn’t allow me to review them here..

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1. These ESG Stocks Are A Cut Above

I’m going to start with an article as it provides insight into what ethical and sustainable investors might look for when investing in individual companies that reflect their personal values. Though renewable energy companies rank high on the list there are others from diverse industries that are also found here. Do read the article which is titled These 50 Canadian corporate citizens are a cut above. It’s by Rick Spence and found on the corporateknights.com site. Here are some quotes by Mr. Spence.

“Since 2002, Corporate Knights’ ranking of Canada’s Best 50 Corporate Citizens has been tracing public and private companies as well as Crown corporations with more than $1 billion in revenues. Our researchers probe 25 key performance indicators (KPIs) to assess how firms manage their resources, employees and finances in comparison to their peer group, with 50% of each company’s score tied to the percentage of their revenue and investments that qualify as sustainable. For the Best 50, that percentage keeps climbing.

Tellingly, the 2023 list is dominated by renewable-energy players high in sustainable revenue. Topping the Best 50 this year (up from second place in 2022 and 20th in 2021) is a pure-play clean energy company:

Innergex Renewable Energy (INE.TO)

The Longueuil, Quebec–based renewable-power producer operates 40 hydroelectric facilities, 35 wind farms, 11 solar farms and one energy-storage facility in Canada, the U.S., France and now Chile…

In second place this year (up from third in 2022 and 14th in 2021) is:

Brookfield Renewable Partners (BEP)

the renewable-energy platform of Brookfield Corporation, the former Brascan empire (which got its start providing electricity in Brazil). With a market cap of $20.2 billion, more than seven times Innergex’s $2.7 billion, Brookfield Renewable produces 25,400 megawatts of electricity through hydro, wind and solar facilities in Canada, the U.S., Colombia, Brazil, Europe and Asia. The company’s latest annual report says it’s also focusing on investing in ‘emerging transition asset classes’ such as carbon capture and storage, recycling and biogas, ‘where our initial investment positions us for potential future large-scale decarbonization investment.’

In third place is:

Hydro-Québec (state-owned corporation)

which was the top company in 2022, 2021 and 2018. While the company largely maintained its sustainable revenue from last year, competition is growing fiercer as more renewable-energy companies jump ahead.

The ‘most improved’ company on the list is:

Canadian National Railway (CNI)

It climbed from 35th place to seventh this year thanks to a notable increase in investments mainly aimed at rail network safety and integrity, as well as track infrastructure network resiliency and information technology initiatives. These investments totaled $2.5 billion, or 85% of Canadian National Railway’s total investments, in 2021.

(Now) Edmonton engineering firm Stantec (STN)

scored highest on the Best 50 when it came to the percentage of its executives’ variable pay linked to sustainability targets. With 26,000 employees and 350 offices on six continents, CEO Gord Johnston says the fast-growing company has been focused on building better communities for more than a decade.

Best 50 bring home higher returns

Corporate Knights researchers compared the stock performance of the public companies on the 2023 Best 50 versus that of the S&P/TSX Composite Index. Since 2002 (the year we published our first Best 50 list), Best 50 companies have rewarded their shareholders with 128% higher returns than the overall composite index. It’s evidence that the ‘triple bottom line’ (profit, people and planet) doesn’t compromise the single bottom line – but expands it.” End quotes.

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2. These ESG Stocks Are A Cut Above

My second article picks three big-cap names and is titled 3 ESG Stocks to Buy With Focus Growing on Net-Zero. By Abhinab Dasgupta and seen on finance.yahoo.com. Here are some quotes by Mr. Dasgupta on each of his picks.

“These companies broadly pass the ESG standard required to dub them as leaders in the sector, i.e., they regularly set, revisit and report on their ESG targets. [And they] flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy), have lucrative earnings potential, and should be looked into.

1) Salesforce, Inc. (CRM)

This company provides customer relationship management technology, has already achieved net-zero residual emissions across its value chain and met its goal of 100% renewable energy in operations. It has targeted the removal of all carbon emissions by 2040 and has innovated a custom-built platform to track its own carbon footprint…

The company currently sports a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved 4.6% north over the past 60 days. The company’s expected earnings growth rate for the current year is 42%.

2) NVIDIA Corporation (NVDA)

This mega-cap semiconductor company, which provides graphics and networking solutions, has reduced emissions by 15% per employee as of 2022 and has set a target to have 65% of its electricity usage come from renewable sources by the end of 2025. It has also made significant strides in the study of climate change by embarking on a project to help predict and mitigate environmental disasters.

The company currently sports a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved 71% north over the past 60 days. The company’s expected earnings growth rate for the current year is 129.3%.

3) PepsiCo, Inc. (PEP)

This global beverage giant has a set target of net-zero greenhouse gas emissions by 2040, and is working to promote regenerative agricultural practices. It has a target of making all its packaging materials recyclable, compostable, and biodegradable.

The company currently carries a Zacks Rank #2.” End quotes.

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3. These ESG Stocks Are A Cut Above

Now another Canadian article with relevance to our global audience. It’s titled 2 Renewable Energy Stocks (With Dividends) That Could Put You in the Green. It’s by Jitendra Parashar at fool.ca. Here are some brief quotes by Mr. Parashar.

“1) Brookfield Renewable Partners (TSX:BEP.UN)

Could arguably be the most attractive renewable energy stocks listed on the Toronto Stock Exchange today. This Hamilton, Bermuda-headquartered renewable power-focused company has a market cap of $11.2 billion. Its stock currently trades at $30.82 with about 13.2% year-to-date gains, outperforming the TSX Composite, which has advanced by 1.8% in 2023 so far.

Interestingly, Brookfield Renewable has been posting attractive double-digit positive YoY (year-over-year) growth in its total revenue for the last 11 quarters in a row…

As the renewable energy company continues to focus on new acquisitions and growth initiatives to expand its business presence worldwide, you can expect its share prices to soar further in the coming years. In addition, Brookfield Renewable stock offers an attractive 4.7% annual dividend yield.

2) Northland Power (TSX:NPI)

is another fundamentally strong Canadian renewable energy stock you may want to consider in 2023. It currently has a market cap of $6.9 billion, as its stock trades at $27.24 per share after losing nearly 26.6% of its value so far in 2023.

This Toronto-headquartered firm has a large, well-diversified portfolio of clean power infrastructure assets, primarily in North America, Europe, and Latin America, and has more than three decades of experience working on power projects. Last year, the offshore wind segment accounted for over half of Northland Power’s total revenue, while the remaining came from other segments like onshore renewables, efficient natural gas, and utility.

The recent correction in Northland Power stock could be attributed to its earnings miss in the first quarter of 2023. Northland Power’s sales from the offshore wind segment fell 13% YoY to $346 million last quarter. This YoY decline was mainly because the unusually high market prices it benefited from in the first quarter of 2022, particularly from its Gemini and Spanish projects, didn’t happen again in the first quarter of 2023.

That said, you can expect its YoY financial growth trend to improve in the coming years as the market prices gradually stabilize, which should help its share prices recover sharply. Besides the expected recovery, a decent annual dividend yield of 4.4% makes this renewable energy stock really attractive to buy on the dip.” End quotes.

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4. These ESG Stocks Are A Cut Above

And I’ll end with this article titled 3 ESG Stocks in Focus for the Socially Responsible Investor. It’s by Tirthankar Chakraborty and published on zacks.com. Now here’s some of what Mr. Chakraborty says about his recommendations.

“1) Pool Corporation (POOL Quick Quote POOL – Free Report)

This company is one of the biggest distributors of swimming pool equipment. Pool Corporation aims at waste reduction and provides effective energy solutions to lessen its environmental footprint.

Pool Corporation not only donates through the National Forest Foundation but also participates in the Environmental Protection Agency’s Water Sense program. POOL provides customers ample guidance to handle wastewater sensibly…

The company’s expected earnings growth rate for the next year is 5.9%. Its shares have already gained 32.7% over the past five-year period. Pool Corporation has a Zacks Rank #2 (Buy).

2) Salesforce, Inc. (CRM Quick Quote CRM – Free Report)

The company is one of the primary providers of customer relationship management software that helps manage cumbersome operations.

Salesforce achieved 100% renewable energy from its operations. The company aims at purchasing renewable energy to increase access to clean power, especially in emerging economies. It also aims at net-zero carbon emissions and has established equal pay initiatives…

The company’s expected earnings growth rate for the current year is 42%. Its shares have already gained 28.1% over the past five-year period. Salesforce sports a Zacks Rank #1.

3) Microsoft Corp (MSFT Quick Quote MSFT – Free Report)

… has become a solid ESG stock. This tech behemoth and one of the leaders in cloud computing is also known as a leader in energy conservation. Microsoft, along with Volt Energy, is aiming at achieving 100% renewable energy by 2025. And by 2050, the company aims at getting rid of all carbon emissions…

The company’s expected earnings growth rate for the current year is 4.7%. Microsoft shares have already gained 22.3% over the past five-year period. Microsoft currently carries a Zacks Rank #3 (Hold).

Shares of Pool Corporation, Salesforce and Microsoft, by the way, have gained 22.8%, 61.3%, and 41%, respectively, so far this year.” End quotes.

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Other Honorable Mentions

1) Title: 3 Stocks to Buy for The Continued Growth of Solar Energy on zacks.com. By Shaun Pruitt.

2) Title: VZ Named A Top Socially Responsible Dividend Stock etfchannel.com. By ETF Channel Staff.

Articles from Canada, UK, and Europe

1) Title: Three investment trusts to take advantage of climate change – on investorschronicle.co.uk. By John Baron.

2) Title: 3 Canadian ESG Stocks for Ethical Investors on yahoo.com. By Adam Othman.

3) Title: Iberdrola, the Spanish company with the best corporate governance according to World Finance on atalayar.com. By Atalayar.

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Ending Comment

Well, these are my top news stories with their stock and fund tips — for this podcast titled: “These ESG Stocks Are A Cut Above.”

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© 2023 Ron Robins, Investing for the Soul