I am extremely sorry for the 12-day delay. I was overburdened with academics and college. Will be regular from now on. Happy reading!
What is trending these days? The Ambanis and Adanis are planning to invest heavily in green energy. Why? Climate Change is happening for real, and people are more vigilant about the same. But what has climate change to do with companies? Let’s find out! (PS: The companies are not Adani or Reliance xD)
Combating climate change has entered the mainstream, and corporate and venture capital investment in climate technologies is rising. In 2020, US investors doubled their money into exchange-traded funds focused on environmental, social, and governance (ESG) criteria — rising to $25 billion (Here is what ESGs are).
But how rewarding are such companies? Here’s the answer that the BCG survey tell us-
Neste is a company that leverages technology to transform fats into molecules that can replace fossil fuels to help customers reduce GHG (Green House Gas) emissions. Neste has developed renewable fuels for road, air, marine transport and chemicals (including base oils and plastics).
Neste envisioned becoming the world’s leading producer of renewable diesel in the early 2000s and has transformed its business to transition from oil and gas to renewable fuels. Neste began producing 100% renewable diesel in 2010 and has since expanded to three global production facilities. It owns 1,000 gas stations in four countries, including Finland’s first low-emission service stations, featuring renewable diesel and electric vehicle charging. It also offers GHG emission-reduction services to customers through Neste Engineering Solutions.
In 2019, Neste helped customers reduce GHG emissions by 9.6 million tons, the equivalent of removing 3.5 million passenger cars from the roads for a full year. That’s a lot. The company has also earned high ESG ratings from investors, making it a perfect choice to invest.
Next on the list is Sila Nanotechnologies, which has developed a silicon-based anode that replaces graphite in lithium-ion batteries. The new anode improves the energy density of batteries by 20%, meaning that 20% fewer cells are needed in each battery pack, and the battery costs 20% less. Manufacturing partners can produce higher-performing cells in their existing factories on current production equipment; they do not need to retool.
The improved battery technology can be applied to a variety of other applications besides EVs, including consumer electronics, electric power storage, and transmission, and electrified flight, all of which have the potential to accelerate the world’s transition to renewable energy. Based on its latest round of funding, Sila is now valued at $3.3 billion. The company has partnered with BMW, and Daimler is both a partner and investor.
Next in line is Equinor. Equinor, with its new technology, has the ability to enable offshore wind turbines to float, obviating fixed moorings. Motion controllers and sensors regulate the turbine blades concerning wind speed, intensity, and direction to prevent capsizing. Equinor’s Hywind Scotland, the world’s first floating wind farm, powers some 20,000 British homes. The company’s upcoming 88-megawatt Hywind Tampen floating wind farm will power five oil and gas installations in the North Sea with renewable power. Floating wind farms could power up to 12 million homes in Europe by 2030.
The last one has to be unique. Growing demand for meat and livestock farming accounts for 15% of GHG emissions and 25% of earth’s available landmass and freshwater. Here comes Memphis Meats to rescue.
Memphis Meats produces good-tasting and healthy meat products by harvesting them from cells instead of animals. This results in direct one-to-one substitution for structurally complex animal meat without added antibiotics, providing healthier and safer food. At scale, eliminating the need to raise and slaughter animals will involve significantly lower caloric input and water, land, and energy use than conventional meat production.
The conventional companies which are not innovating enough towards Net Zero emissions and a sustainable environment will have to pay sooner or later. This was quoted by Lary Fink, the CEO of BlackRock as-
Climate change has become a defining factor in companies’ long-term prospects.
As an article by BCG quotes,
The financial community needs to focus more intently on actual results and how investors can contribute to financing the transition to new technologies and models to combat the climate change problems.
So yeah, all in all, companies who are vigilant and serious enough to see climate change and hence build innovative solutions for the same will be the real winners in the near future. Start finding companies like these to invest in so that you have a portfolio giving gargantuan returns 😉😉.
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Global News from all around the world
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- The first US Bitcoin-linked ETF starts to trade on New York Stock Exchange.
- It’s raining IPOs, Policybazar gets SEBI’s nod to raise over 6000 crores.
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