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Top ESG Stocks to Watch – Invest Responsibly With These 5 Companies

Here are five ESG stocks to watch. Each of these businesses focus on sustainability through Environmental, Social, and Governance actions.
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This article was originally published by Investment U

Corporate responsibility is becoming a critical factor in finding the best investment opportunities. Rather than focusing specifically on returns, ESG investing prioritizes accountability as well as business performance. For this reason, this article will cover the top ESG Stocks to watch for responsible investing.

ESG stocks are businesses that strategically focus on sustainability through Environmental, Social, and Governance actions. As a result, investors are starting to consider this as an essential factor.

If a company has a poor press release due to these factors, the stock will often fall significantly. Limit your chances of that happening with these top ESG stocks to watch.

Top ESG Stocks to Watch List

According to new research, 77% of Americans think about a product’s environmental impact when making a purchase. What’s more, it’s even more of an issue with younger generations as 3/4th’s of millennials will pay more for sustainable products.

This research shows a clear trend – people want companies to do their part. On top of this, Wall St is beginning to catch on. With that in mind, here are the top ESG stocks to watch:

  • Chipotle (NYSE: CMG)
  • Nike (NYSE: NKE)
  • Target (NYSE: TGT)
  • Nvidia (NASDAQ: NVDA)
  • Microsoft (NASDAQ: MSFT)

Not only are these some of the most respected brands, but they are also making an effort to make the world a better place.

#5 Chipotle

  • MSCI ESG Rating: BBB
  • ESG Risk Rating: 24.2 (Medium Risk)
  • 1 Year Growth: 34%

Chipotle is one firm that was founded on ethics in mind. To support its ability to grow and expand, Chipotle is investing heavily in local farming.

In Chipotle’s latest sustainability report, CEO Brian Niccol Said “Sustainability is and always will be a strategic priority for Chipotle.”

With that in mind, Chipotles entire operation focuses on some aspect of sustainability. From the partners they work with, to the ingredients they source, and the employees serving the food. As a result of the efforts, Chipotle has a positive reputation.

For example, chipotle prevented 50% of its waste from entering landfills in 2020, and 100% of its new stores opened this past year now take part in its food donation program.

On top of this, Chipotle is a rapidly growing stock. Its strategy is benefitting shareholders as well as the environment. In its 3rd quarter, the company increased total revenue 21.9% to $2 billion. Even more, Chipotle’s tech investment is helping boost digital sales, which accounted for 42.8% of sales.

Being a millennial favorite, Chipotle is an excellent candidate to be a top ESG stock to watch for years to come.

#4 Nike

  • MSCI ESG Rating: A
  • ESG Risk Rating: 16.6 (Low Risk)
  • 1 Year Growth: 51%

Known as a bold leader, Nike is another ESG company aggressively moving towards sustainability. In fact, the company is aiming for zero carbon and zero waste as part of its “Move to Zero” campaign.

Nike promotes the campaign as a way of protecting the future of athletes. Because climate change can affect athletic performance, Nike is teaming up with experts and researchers to help fight it.

Also, Nike is doing its part to reduce its impact on the environment. The company is stepping up its sustainability efforts by a) using 100% renewable energy sources in the U.S & Canada b) reducing freshwater use by 30%, and c) diverting 99.9% of its waste from landfills.

On top of this, Nike stock is up over 50% on strong earnings growth. The sports fan favorite is executing on a high level, with revenues up 16% to $12.2 billion. Not to mention Nike’s connection with consumers is only strengthening with its digital channel growing 25%.

 #3 Target

  • MSCI ESG Rating: AA
  • ESG Risk Rating: 14.6 (Low Risk)
  • 1 Year Growth: 67%

Target is yet another consumer brand favorite focusing on bettering the world around it. As a matter of fact, Target’s new campaign, “Target Forward,” is designed just for that – to benefit the people, planet, and business.

The company’s CEO put it best:

“Success is making ourselves useful in the world, valuable to society, helping in lifting the level of humanity, so conducting ourselves that when we go, the world will be somewhat better…”

With that in mind, the company has several aggressive goals.

  • By 2030: 1) Be the market leader for creating inclusive, sustainable brands. 2) Aim to build a team that reflects the communities around them.
  • By 2040: 1) 100% of owned brands to support a circular future. 2) Committed to being a net-zero company.

Another key point to consider is Target’s incredible growth over the past two years despite industry challenges.

In its second quarter, comp sales grew another 8.9% after a record-breaking 24.3% growth last year. What’s more is Target’s digital channel advanced 10%, on top of 195% growth the year before.

Keep reading to find the top ESG stocks to watch…

#2 Nvidia

  • MSCI ESG Rating: AAA
  • ESG Risk Rating: 12.8 (Low Risk)
  • 1 Year Growth: 76%

Nvidia is on a tear lately, returning over 350% since its lows in March 2020. With the company’s technology playing a vital role in the healthcare industry, NVDA stock came into focus. As a result, the company poured $17 million into Covid support.

In addition, Nvidia’s technology is reducing energy usage. All in all, of the top 30 greenest computers, 26 of them use Nvidia’s technology.

This year, 17 of Nvidia’s locations were fully powered by clean energy sources. And by 2025, the company is targeting 65% clean energy usage.

As a result of the increased demand for its products, the company saw record revenue of $6.51 billion, up 68% YOY. The company’s gaming segment led the way, advancing 85% YOY, followed by data, up 35%.

Top ESG Stocks to Watch – #1 Microsoft

  • MSCI ESG Rating: AAA
  • ESG Risk Rating: 13.3 (Low Risk)
  • 1 Year Growth: 48%

It’s hard to think of a company more committed to sustainability and improving life around us than Microsoft. In January 2020, the company committed to achieving a negative carbon footprint. Not only that, but Microsoft is pledging to remove the impact of its emissions since it was established by the year 2050.

Microsoft is involved in several different projects that relate to ESG issues.

  • Investing $30 million to help support a circular economy.
  • Investing $10 million to support technology for better water quality and conservation.
  • Eliminated 1.3 million metric tons of carbon as the result of projects.
  • Investing $129 million to fund carbon reduction, water management, and economic support.
  • Suppliers reduced carbon footprint by 21 million.
  • Achieved Zero Waste Certification in two data centers.
  • Providing safe drinking water for 1.5 million people.

As you can see, Microsoft is a company that puts its money where its mouth is. It isn’t just trying to please shareholders – it’s proving it’s committed through its actions. As a result, Microsoft is #1 on the top ESG stocks to watch list.

Top ESG Stocks to Watch – Balancing Returns & Integrity

These are some of the top ESG stocks to watch as corporate responsibility is increasingly becoming a concern among investors. In fact, a new study shows ESG stocks performed 1.4% – 2.4% better than their peers when the market was responding to the pandemic news.

The research also reveals a distinct pattern – financial performance seems to improve with ESG stocks and is more noticeable over a longer period of time.

Furthermore, the commitments also seem to drive innovation and better risk management practices. Therefore, keep an eye on these top ESG stocks as they lead towards a more sustainable future.

And finally, check out Profit Trends below to keep up with the latest ESG stocks to watch. The Profit Trends team regularly highlights renewable energy stocks and other technologies in the ESG space. Join today!

The post Top ESG Stocks to Watch – Invest Responsibly With These 5 Companies appeared first on Investment U.

Author: Pete Johnson

Energy & Critical Metals

With Fisker Up 33% in November, Is There Still Room for Growth?

Electric vehicle (EV) company Fisker (NYSE:FSR) has had a roller-coaster year. But now with 2021 reaching a close, FSR stock is on a roll. Specifically,…

Electric vehicle (EV) company Fisker (NYSE:FSR) has had a roller-coaster year. But now with 2021 reaching a close, FSR stock is on a roll. Specifically, the month of November was big for the company, highlighted by an Ocean EV unveiling at the LA Auto Show. FSR stock closed out October at $16.05. By the last day of November, it was worth $21.39. That’s a 33% gain — not bad for one month.

Mobile phone with company logo of US electric vehicle manufacturer Fisker Inc. on screen in front of webpageSource: T. Schneider / Shutterstock.com

Can the climb continue? After all, although we have finally seen a completed version of the vehicle, the Fisker Ocean is still a year from production in November 2022.

A lot could go wrong between now and then. It’s also possible that the excitement over the Ocean’s debut has boosted FSR stock to a point where further gains are unlikely, at least in the short term. As such, it’s time to take a closer look at this Portfolio Grader “C” rated stock and see if it deserves a spot in growth-oriented portfolios.

FSR Stock: The Ocean Is Real and Consumers Are Onboard

The start of 2020 was not long ago, but it was the beginning of a new era. Tesla (NASDAQ:TSLA) had begun ramping up to mass production levels. In 2019, the EV maker delivered 367,500 vehicles, up 50% from the prior year. Further, a total of 2.1 million EVs had been sold globally in 2019 as well. Meanwhile, CEO Henrik Fisker was preparing for CES 2020 with his prototype battery-powered Ocean SUV.

Details were lacking at CES and Fisker’s claims were taken with a big grain of salt. For instance, an article in The Verge noted that Fisker was known for “ambitious vision” but also had a reputation for his “trouble executing.”

Fast forward to November 2021.

Climate change reality is hitting home. Now, the White House is pushing to make half of all vehicles sold in the U.S. zero-emission certified by 2030. That means there will be a lot of EVs. One recent report put the value of the global EV market at over $2.49 trillion by 2027.

So, now publicly traded, Fisker is capitalizing on these catalysts by showing off its production-ready Ocean SUV. The battery-powered Fisker Ocean starts at $37,499 and can be had for just $379 per month on a flexible lease. Plus, it’s not just any old EV — the model is also one of the world’s most sustainable vehicles, thanks to features like a vegan leather interior and its extensive use of recycled materials.

The fact that FSR stock got a bump in November is really a no-brainer, then. But more importantly, Fisker is showing every sign that it’s executing.

The Bottom Line on FSR Stock

It’s easy to see the potential in Fisker. The market for EVs is huge and, after decades as a curiosity, battery-powered vehicles are going mainstream. 

Tesla has shown just how spectacular the growth potential is for EV makers. Now, the company has a first-mover advantage and is unlikely to lose market dominance anytime soon.

I’m not trying to suggest that Fisker is another Tesla. However, Tesla has shown it’s possible to do the unthinkable —  not only starting an EV company from scratch, but also going from zero production capacity to 238,000 EVs manufactured in a quarter.

Will FSR stock ever see the explosive growth that TSLA stock has seen? It’s 33% climb in November was a good start. There’s also no shortage of analysts who are bullish on Fisker. For instance, Bank of America analyst John Murphy recently upgraded his price target from $18 to $24.

The bottom line here? Fisker has potential and the risk involved with investing in this company is considerably less than it once was. With production a year out, there are ways its plans could still go sideways. However, with production-ready versions of the Ocean already on display — details published and pricing confirmed — FSR stock is looking more and more like a good candidate for long-term growth.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.

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The post With Fisker Up 33% in November, Is There Still Room for Growth? appeared first on InvestorPlace.

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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.”





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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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