If anything, the COVID-19 pandemic brought us to the revelation upon the importance of environment conservation. Accordingly, ESG investing has become the spotlight. Quoted from NASDAQ, here are three stocks that are most suitable for ESG investors!
Finding a balance between technology and ESG: Apple stocks
Apple is, surprisingly, a lot more environmentally conscious than you might have thought. Though it is not completely following the ESG criteria, Apple’s effort to change is worth to note.
NASDAQ pointed out three significant points that prove Apple indeed implements ESG criteria, with environmental being its focus, in its business. Firstly, Apple has made its operations carbon neutral. Secondly, the tech company has a plan to shift into carbon-neutral suppliers, both in products and manufacture. The plan is due to be realized by 2030. Lastly, Apple owns the largest solar electricity with 400 megawatts (MW).
While the implementation of social criteria does not really stand out compared to its environmental criteria, Apple still has quite the impact. Apple infuses social criteria through its products, one of them is Apple Watch. Apple Watch‘s health monitoring feature does not only help individuals. It is also a data haven for medical researchers, as users can participate in health studies through the gadget.
Pick the right side: Brookfield Renewable Partners
Brookfield Group is a holding company. Its parent company, Brookfield Asset Management, channels capital to its publicly traded entities. One of them, in which focuses on ESG investing, is Brookfield Renewable Partners.
NASDAQ noted that Brookfield Renewable’s portfolio consists of over 5,300 power-generating facilities from all over the world. Its ownerships and investments range from hydroelectric, solar, and wind power. Brookfield Renewable recorded over $50 billion in operating renewable generation and still aims for growth in the renewable energy group. With Brookfield Renewable’s reputation, investors are guaranteed to be in the right place for ESG investments.
Steel Dynamics: how steelmaker become the top ESG stock
We can’t just put a full stop to every “dirty” industry. Instead, putting more interest in companies that are willing to change into a cleaner, and more sustainable companies would still do the job. This is the exact strategy Steel Dynamics commenced through.
Steel Dynamics strategies to become a lot less sustainable are commendable. Derived from NASDAQ, Steel Dynamics currently recycle or internally generate 83% of its inputs. Additionally, the company sources its inputs from mills ranging within 250 mills to reduce transport emissions. The company also reuses 99% of water and recycles 99% of mill byproducts. Steel Dynamic managed to suppress their energy intensity at 11% and emissions at 13%, both still under the global steel production averages.
Despite their shift towards sustainable business, Steel Dynamics still generates money for its investors. Hence why NASDAQ recommends investing in Steel Dynamics for both the financial profit and environmental benefit.
Read also: ESG Investing: Will It Persist, or Will It Pop?
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