Transcript & Links, Episode 122, January 26, 2024

Hello, Ron Robins here. So, welcome to this podcast episode 122 titled “The World’s Most Sustainable Corporations.” 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 revised website at investingforthesoul.com! Tell me what you think.

Now, 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 6 article links below that time didn’t allow me to review them here.

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The Global 100 list: How the world’s most sustainable corporations are driving the green transition

I’m beginning this episode highlighting my favorite sustainable’ Corporations ranking. You can find their just released 2024 ranking in this post titled The Global 100 list: How the world’s most sustainable corporations are driving the green transition. The introduction is by Shawn McCarthy and posted on corporateknights.com. Here are some quotes.

“Now in its 20th year, Corporate Knights’ Global 100 ranking of the world’s most sustainable companies reveals the top firms that are increasing their investments in green solutions such as renewable energy, energy efficiency and the circular economy.

‘When we launched the Global 100 in 2005, the green economy was a quaint idea. Many companies didn’t publish in-house sustainability reports. There were no standardized key performance indicators, and none of the companies were reporting the percentage of their revenue or investments that were green,’ says Corporate Knights co-founder and CEO Toby Heaps…

In the 2024 Global 100 ranking, the top-ranked firms allocated 55% of their investments to sustainable projects, up from 47% the year prior. That compares with sustainable investments at a paltry 17% among the broader universe of publicly traded companies with more than US$1 billion in annual revenue…

The 2024 Global 100 companies earned 51% of their revenues from sustainable sources in the fiscal year 2022, up from 50% the prior year. That compares with just 16% for the broader universe of companies…

Top Companies

Two Australian companies, Sims Ltd. (SMSMY) and Brambles Ltd. (BMBLF) top the 2024 ranking. Sims, this year’s number one company, recycles scrap metal in 30 countries, and Brambles rents reusable pallets and containers around the globe. Both companies score 100% on sustainable revenue and sustainable investment…

The Global 100 also awarded a ‘pivot prize’ to Italian energy firm ERG SpA (ER9.BE), which completed its multiyear transition from black to green halfway through 2023…

The Global 100 rates companies in 38 industry groups… based on 25 metrics. It applies different weighting to certain metrics given the nature of the sector. Sustainable revenue and sustainable investment are key measures…

The Global 100 score far better on overall environmental, social and governance (ESG) metrics than do their peers. For example, 79% of Global 100 firms had sustainability-linked pay; only 30% of the broader corporate universe linked executive pay to the achievement of environmental or social sustainability targets…

Between February 1, 2005, and December 15, 2023, the Global 100 saw a return of 287% on a U.S. dollar basis, while the MSCI ACWI had a return of 272%. The Dow Jones Sustainability World Index posted a return of 254% over that period.” End quotes.

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Franklin Templeton Positive On Green, Social Bonds In 2024

This second article features a green bond fund by a firm who was one of the pioneers in mutual funds. The article is titled Franklin Templeton Positive On Green, Social Bonds In 2024. It’s by Amanda Cheesley and found wealthbriefing.com. Now some quotes from Ms. Cheesley.

“David Zahn, head of European fixed income at Franklin Templeton, believes that sustainable investing will be a dominant investment trend, with structural tailwinds that could help improve financial returns…

Zahn thinks that green and social bonds, which are typically issued to fund longer-term projects, are a good source of longer-duration investments…

Zahn also believes that an expanding and increasingly diverse sustainable finance market means that attractive returns can go hand in hand with a positive impact on the environment and our communities…

Zahn manages the Franklin Sustainable Euro Green Bond UCITS ETF (FLRG:SWX:EUR) which aims to provide exposure to the European green bond market whilst maximising total returns. It… invests mainly in bonds that are labelled green and denominated in European currencies. The fund… has outperformed the index over a three to five-year period.” End quotes.

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Top 10: Wind Power Companies

Now this next article has an interesting ranking of the top global wind companies. It’s titled Top 10: Wind Power Companies and is by Maya Derrick and seen on energydigital.com. Here are some quotes on the findings of Ms. Derrick’s research.

“Ranked by the latest available annual revenue stats, from year ending 2022, we run through the top 10 leading companies in the wind power industry.

10. Suzlon

Revenue: US$403 million
Country: India

Indian multinational wind turbine manufacturer Suzlon is among the world’s leading renewable energy solutions providers revolutionising and redefining the way sustainable energy sources are harnessed. The Suzlon Group has a presence in 17 countries across Asia, Australia, Europe, Africa and the Americas.

9. Renewable Energy Systems Americas

Revenue: US$1.6 billion
Country: USA

Renewable Energy Systems Americas (RES) constructs renewable energy projects for its worldwide customer base. Renewable Energy Systems Americas now has an ever-growing portfolio, made up of 110 solar, wind, transmission and energy storage projects in the US alone and more than 1,000 miles of transmission line.

8. EDP Renewables North America

Revenue: US$2.6bn
Country: USA

Owned by Spanish company EDP Renewables… With 59 wind farms and 12 solar parks in North America alone, EDP Renewables North America works to fulfil its mission of ‘leading the energy transition to create superior value for all’.

7. Avangrid

Revenue: US$7.9bn
Country: USA

A part of the Iberdrola Group, Avangrid provides onshore and offshore wind power and solar power to clients across 20 US states… it has a footprint in 24 states with US$41 billion in assets… The company has… been named one of the World’s Most Ethical Companies for five consecutive years by the Ethisphere Institute.

6. Vestas

Revenue: US$15.5bn
Country: Denmark

Vestas designs, manufactures, installs and services wind turbines in 83 countries and has a workforce of more than 25,000 employees globally. The company has installed in excess of 66,000 wind turbines in its portfolio.

5. NextEra Energy

Revenue: US$21bn
Country: USA

The American energy company that is one of the world’s largest wind and solar energy generators and also operates nuclear power and natural gas plants.

4. RWE Renewables

Revenue: US$41.7bn
Country: USA

Working toward a goal of being carbon-neutral by 2040, RWE is a key driver of the energy transformation, working across data networks, mobility, competitive industries and building infrastructure. The 125-year-old company works to balance the need to meet the growing demand for power while mitigating negative effects of climate change… It has 27 wind farms in operation across the country.

3. Mitsubishi Heavy Industries

Revenue: US$30.3bn
Country: Japan

Since Mitsubishi Heavy Industries delivered the first equipment for commercial use in Japan in 1982, the group has supplied more than 4,200 units, around 4.4GW, of wind power generators globally… It has a focus on on-shore wind turbines.

2. General Electric

Revenue: US$76.6bn
Country: USA

GE is the largest renewable energy company by a significant margin… GE has installed more than 49,000 wind turbines and enough renewable energy sources to produce 400GW of energy worldwide… As well as this, GE’s battery energy storage solutions can store and deliver electricity produced by their wind turbines.

1. Siemens

Revenue: US$78bn
Country: Germany

(Siemens is) a more than 175-year-old technology company which played a major role in the early years of electricity, Siemens’ wind power offering is extensive. The company established the world’s first offshore wind power plant in 1991 and continues to be a large player in both the onshore and offshore spaces…

Siemens Gamesa… is well-known for its SG 14.0-222 wind turbine… the largest wind turbine in the world.” End quotes.

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3 EV Stocks Cementing Their Status as Top Long-Term Market Picks

Many ethical and sustainable investors are buying EV stocks. Here’s an article on that sector by Dmytro Spilka and found on investorplace.com. It’s titled 3 EV Stocks Cementing Their Status as Top Long-Term Market Picks. Here are some quotes by Mr. Spilka on his picks.

“1. Li Auto (NASDAQ:LI)

At the core of Li’s strong year was an astonishing 182.2% total deliveries growth to 376,030. Cumulative deliveries surpassed 600,000 vehicles. This makes the firm the most prolific among China’s emerging new energy automakers. 

With the upcoming launch of Li MEGA, the firm’s flagship new MPV set to roll out in February 2024, the firm appears to be leading the charge to become China’s EV market leader.

Li Auto’s recently announced partnership with semiconductor giant Nvidia (NASDAQ:NVDA) will see Nvidia’s DRIVE Thor centralized car computer power Li’s future EV fleets. 

2. Rivian (NASDAQ:RIVN)

has endured a fairly torrid time on Wall Street since its debut in late 2021… The news that the auto manufacturer will be supplying its vehicles for AT&T’s (NYSE:T) fleet represents a significant coup for the firm…

In perhaps its biggest statement of intent, Rivian produced 17,541 vehicles in Q4 alone…

Rivian’s management has boldly predicted that the firm will begin turning gross profit positive, making Rivian a solid pick for investors with a long-term outlook. 

3. Tesla (NASDAQ:TSLA)

Tesla… deliveries in Q4 alone hit a total of 484,507. 

On top of this, the highly anticipated launch of the Cybertruck has helped to keep the stock in the spotlight. Tesla’s commitment to autonomous driving is likely to ensure that it stays at the forefront of innovation…

One of the stock’s biggest supporters is Cathie Wood, CEO and CIO of Ark Invest (ARKK)… Wood claimed that Tesla stock could reach the $4,600 mark. That would be a price target of $1,533.33 when adjusted for the split.” End quotes.

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The Top 3 Stocks to Benefit from Next-Gen Energy Solutions

My final article for this episode is titled The Top 3 Stocks to Benefit from Next-Gen Energy Solutions. It’s by Steve Booyens and also found on investorplace,com. Due to limited space I’m just quoting Mr. Booyens briefly.

“1. Brookfield Renewable Energy Partners (NYSE:BEP)

A company with diversified renewable energy exposure with significant scale in store.

2. First Solar (NASDAQ:FSLR)

Economies of scale and continuous capacity sequencing place First Solar best-in-class.

3. Enphase Energy (NASDAQ:ENPH)

A buy-the-dip opportunity highly touted by Wells Fargo.”

End quotes.

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Other Honorable Mentions – not in any order.

1. Title: 3 Top Renewable Energy Stocks to Power Up Your Portfolio on investorplace.com. By Muslim Farooque.

2. Title: 3 Alternative Energy Stocks to Watch Amid Rising Material Cost on finance.yahoo.com. By Aparajita Dutta.

3. Title: Morgan Stanley a Top Socially Responsible Dividend Stock With 3.7% Yield on nasdaq.com. By BNK Invest.

Articles from the UK and Canada

1. Title: Top 200 Ethical Businesses on thegoodshoppingguide.com.

2. Title: The top 20 ESG funds of 2023 on trustnet.com. By Matthew Cook.

3. Title: 2024 Responsible Funds Guide Canada on corporateknights.com. By Tim Nash.

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Ending Comment

Well, these are my top news stories with their stock and fund tips — for this podcast titled: “The World’s Most Sustainable Corporations.”

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Bye for now.

© 2023 Ron Robins, Investing for the Soul