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Climate Investing: What it is, What’s Propelling it, and Where to Start

In 2020, inflows into sustainable ETFs were 63x higher than in 2016. We show how investors can implement climate investing in their portfolio.
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This article was originally published by Visual Capitalist

The following content is sponsored by iShares by BlackRock.

Climate Investing

Climate Investing: What it is and Where to Start

Across all sustainability issues, 88% of global investors rated the environment as the number one priority. Clearly, investors are recognising the urgency of climate change and the need for related investing strategies.

In this graphic from iShares by BlackRock, we define climate investing, the forces giving it momentum, and how investors can begin to implement it in their own portfolios.

What is Climate Investing?

Climate investing involves selecting sustainable strategies where climate risks and/or opportunities are key considerations. This helps investors align their portfolios with the transition to a low carbon economy.

What’s Propelling it?

There are a number of long-term structural forces accelerating the shift to climate investing.

  • Extreme weather damage: In 2020 alone, damages from natural disasters hit $210 billion—the highest amount ever recorded.
  • Global climate regulations: Around the world, 134 countries have made a carbon neutral pledge.
  • Clean energy innovations: Renewable energy is getting cheaper, with production costs of solar photovoltaic technology falling 89% between 2009 and 2019.
  • Favourable investor sentiment: Almost two-thirds of people in 50 countries believe climate change is a global emergency.

In response to this momentum, the number of companies disclosing on climate change has almost doubled in the last five years. This transparency can enable investors to make more informed decisions.

How Can Investors Navigate This Fast-moving Transition With ETFs?

New products with climate considerations are helping investors with the transition, and one widely available vehicle is Exchange Traded Funds (ETFs). In fact, annual inflows into global sustainable ETFs have grown substantially.

Year Annual Inflows
2016 $1.4B
2017 $4.1B
2018 $6.8B
2019 $29.3B
2020 $87.8B

In 2020, inflows into sustainable ETFs were 63 times higher than they were in 2016. ETFs are a useful tool because they offer the transparency investors need to pursue specific financial and climate goals.

The Three Climate Investing Approaches

Within sustainable ETFs, there are a range of funds that incorporate climate considerations. To bring clarity to this space, BlackRock has categorised climate investing into three key approaches:

  • Reduce exposure to carbon emissions or fossil fuels. For example, this could involve minimising or eliminating companies that have high carbon emissions relative to their sector peers.
  • Prioritise companies based on climate risks and opportunities. In practice, this could mean increasing the weighting of companies based on their commitments to align with Paris Agreement temperature goals.
  • Target climate themes and impact outcomes. For example, an investor could invest in a specific sustainable activity or project, such as clean energy.

“We believe that the biggest potential benefits will accrue to the global investors who are quickest to ready their portfolio for the new era of climate investing.”
—Manuela Sperandeo, EMEA Head of Sustainable Indexing at BlackRock

No matter an investor’s approach, iShares believes that they can help catalyse the shift to sustainable investing.

The post Climate Investing: What it is, What’s Propelling it, and Where to Start appeared first on Visual Capitalist.

Energy & Critical Metals

EV Nickel starts trading on TSX Venture Exchange

  TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the…

 

TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the TSX Venture Exchange and has begun trading on the Exchange.

The closing of the IPO, scheduled for December 2, 2021, was expected to have gross proceeds of $5,440,292 for a total of 1,442,200 flow-through (FT) common shares at 86 cents per FT common share and of 5.6 million units at 75 cents per unit. The company has 30,355,667 common shares issued and outstanding

EV Nickel, classified as a Tier 2 issuer, is a Canadian nickel exploration company, focused on the Shaw Dome area, south of Timmins, Ontario. The Shaw Dome area is home to its Langmuir project, which includes W4, the basis of a 2010 historical estimate of 677,000 tonnes at 1% nickel for approximately 15 million pounds of Class 1 nickel.

EV Nickel’s objective is to grow and advance a nickel business, targeting the growing demand for Class 1 nickel from the electric vehicle battery sector. EV Nickel has almost 9,100 hectares to explore across the Shaw Dome area and has identified 30 km of additional strike length.

“We are excited to get out into the public markets and begin telling the world about our wonderful assets, on the Shaw Dome, just south of Timmins,” said Sean Samson, president and CEO. “The world needs more nickel and especially the type of high-grade, clean nickel that we plan to build our business around. Decarbonization is the challenge of a lifetime and we plan to source the material that will help the EV [electric vehicle] companies grow and help address that challenge.”





Author: Editor

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Base Metals

Vision Lithium to Buy The Cadillac Canadian Lithium Property

Canadian-based exploration company Vision Lithium agreed to acquire 100% interest in 215 contiguous mining claims in Quebec, Canada.  Combined with an…

Vision Lithium Property Portfolio
Cadillac lithium property located approximately 40 km west of Val-d’Or. Source: Vision Lithium

Canadian-based exploration company Vision Lithium agreed to acquire 100% interest in 215 contiguous mining claims in Quebec, Canada. 

Combined with an additional 105 stakes claimed by the company, the group of claims will be collectively referred to as The Cadillac lithium property.  

Details of the agreement include the vendor groups receiving an aggregate cash consideration of $102,427.92 from Vision Lithium, as well as ​​issue a total of 4,300,000 common shares of the company. The shares are not divided evenly, with 1.5 million each going to the CMH Group and Fancamp, the Leblanc-Lavoie Group will receive 1 million and 300,000 Shares will go to the Tremblay Group. The company will also pay each vendor group a 2% net smelter return royalty on the claims. 

President & CEO of Vision Lithium Yves Rougerie commented in a press release, “The Cadillac lithium project is an exciting addition to our growing portfolio of lithium properties. The Property is located 10 km south of the Trans-Canada highway and only metres from the secondary road, ensuring easy access for logistics, materials and qualified manpower.”

The claims acquired by Vision Lithium combined with the additional 105 claims staked, means the property holds a total of 320 claims covering 18,378 hectares. The property is easily accessible year-round in an area with well-maintained roads. This is especially helpful since Quebec can become covered in snow for multiple months of the year, and established infrastructure gives the company a head start.

There are also at least 4 pegmatite dikes which are spaced approximately 100 metres apart and traced for at least 300 metres along on the property. 

Rougerie continued “The property hosts a cluster of close-spaced parallel lithium-bearing dikes. Spodumene has been observed in the outcropping dikes and we believe there are likely more dikes in the cluster. The dikes have seen surprisingly little historical exploration with only a handful of samples and no drilling to date.” 

High Potential for Additional Lithium Discoveries

Lithium crystals have been observed on all four dikes of the property, with even a few large crystals visible. 

The property is located approximately 10 km south of Cadillac, a historic mining town, and about halfway between the major mining centres of Rouyn-Noranda and Val-d’Or in Quebec. 

“We believe the potential for additional lithium discoveries within the main cluster area is excellent and the larger property also has tremendous upside potential for discovery. The entire area acquired and staked is very large at almost 200 square kilometres. We plan to aggressively explore the Property over the winter by drilling the main cluster of dikes and to plan and complete field work next summer over the large tract of land,” Rougerie said. 

There are a number of closing conditions and post-closing obligations for the company until the transaction is officially completed. This includes the execution of certain deeds and instruments of conveyance, and the approval of joining the TSX Venture Exchange. Completion of the transaction is expected to be finished in the coming days. 

Vision Lithium focuses on exploring and developing mineral assets such as lithium and copper in different parts of Canada. Other than the claims they have just received in the recent transaction, the company has operations in Manitoba, and multiple properties in New Brunswick and Quebec. The first drill program at the company’s Dome Lemieux copper property in Quebec has commenced. Vision has also recently completed the Red-Brook copper and zinc drill program in New Brunswick. 

Vision Lithium is focused on developing their Sirmac lithium project in Quebec which is a hard rock source of lithium. Lithium can either come from hard rock sources or brines, and about 50% of each make up the world’s lithium compound production. Both sources can produce battery-grade lithium, but the extraction process is very different. The company plans on using existing methods to extract lithium for the battery market. This is a key area for the company as demand for battery materials is soaring in the middle of a global energy transition. 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

The post Vision Lithium to Buy The Cadillac Canadian Lithium Property appeared first on MiningFeeds.





Author: Matthew Evanoff

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Energy & Critical Metals

NIO Stock Alert: One Big Reason EV Maker Nio Is Plunging Today

As all eyes turn to Chinese stocks today, Chinese electric vehicle (EV) producer Nio (NYSE:NIO) is in the spotlight. Indeed, as NIO stock slides, investors…

As all eyes turn to Chinese stocks today, Chinese electric vehicle (EV) producer Nio (NYSE:NIO) is in the spotlight. Indeed, as NIO stock slides, investors are left to ponder the news coming out of the Securities and Exchange Commission (SEC) as well as what it might mean for the EV industry as a whole.

Source: Sundry Photography / Shutterstock.com

So, what is this big news?

Chinese stocks that trade on major U.S. exchanges have been sliding since markets opened this morning, a direct result of the recent news from the SEC. The regulatory agency has announced that it will be implementing a new law that will require all international companies that trade on the NYSE or Nasdaq to turn over their financial books to U.S. regulators upon request or face being delisted.

One major stock has already delisted and others seems poised to follow. These events have cast a cloud of uncertainty over markets, and investors have many questions about their Chinese investments. Investors have a lot to think about as NIO stock falls, in terms of the future of both the company and its industry.

What’s Happening With NIO Stock

Like most China-based companies that trade in the U.S., NIO stock has been falling all day. As of this writing, it is down by almost 9%. Despite an earlier uptick, it isn’t showing signs of rebounding. The stock has been declining since December began, but yesterday’s news has caused it to plunge, pulling it into the red by more than 20% for the month. It’s clear that since news broke of Chinese ride-sharing giant Didi Global (NYSE:DIDI) making the move to delist from the NYSE, investors are nervous, bracing for a selloff.

Nio isn’t the only Chinese EV manufacturer that hasn’t been enjoying the ride today. Its peers XPeng (NYSE:XPEV) and Li Auto (NASDAQ:LI) have seen worse declines. Both are down as of this writing, by 9% and 13%, respectively.

Why It Matters

While this news has sent Chinese stocks across many different sectors into a downward tailspin, there are other factors that are worth considering. Nio filed for an additional listing on a Hong Kong exchange in early 2021, but the decision was delayed for months, stretching into 2022 with little information provided by the company as to the reasons behind it. If the company was already planning to list in another market, this news from the SEC could prove the incentive it needs to delist in order to expedite the process. It’s hard to pinpoint exactly what this means for NIO stock.

Wall Street hates uncertainty. And since an important international company decided to comply with unprecedented orders from its government, uncertainty has reigned supreme. Nio’s incentive to delist is likely high, and if one industry leader makes a decision, others may follow. Adding to the turbulent market outlook is the fact that many Chinese business leaders haven’t said much since news broke of the SEC’s decision, leaving investors to wonder what the immediate future will look like.

The fact that Chinese EV stocks are slipping across the board indicates that this news is serious. The EV race, in which China’s companies have played a key role, has come to define investing in 2021 and looks set to continue into the new year. If such a prominent sector can feel the strain of this news, no industry is immune.

What It Means

The road ahead looks bumpy for all Chinese stocks that trade on U.S. markets, not just the EV sector. The emerging threat of the omicron variant was already casting doubt over markets, as investors braced for what will likely be known as the “omicron winter.” Now they have an even shorter-term concern to field.

With all this in mind, there are plenty of factors that contribute to a stock making the move to delist. We don’t know for sure what this news will mean for NIO stock, but it is certainly a name to watch as Chinese companies make decisions and trends start to develop.

On the date of publication, Samuel O’Brient did not have (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.

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The post NIO Stock Alert: One Big Reason EV Maker Nio Is Plunging Today appeared first on InvestorPlace.

Author: Samuel O'Brient

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