Why should you invest in recycling and waste management?
As we saw in our previous blog post, the industrial revolution has encouraged the burning of fossil fuels for power generation, fuel and industries. This has increased the amount of waste, pollution and atmospheric carbon dioxide. We produce enough waste in a year to fill over 800,000 Olympic-sized swimming pools (Source: BBC News 2021)! Today, everyone is aware of the detrimental effects single-use plastics have on the world. As such, investors and financial advisors are beginning to understand the potential and importance of investing in recycling and waste management.
Cleanaway Waste Management (ASX: CWY)
Cleanaway Waste Management Limited is the largest waste management company in Australia. Their mission is to make a sustainable future possible. They provide a complete range of sustainable total waste management including general waste and recycling, liquid waste, waste oil, hazardous regulated waste and bio-hazardous waste. They have one of the largest national fleets and are able to manage commercial, residential and industrial waste. Cleanaway is currently trialling electric vehicles that are energy-efficient to further lower their environmental impact. Additionally, they generate 134 GWh of renewable energy per year.
Gross Revenue FY2020: AUD $2.33B
Market Capitalisation July 2021: AUD $5.23B
(Source: Cleanaway Waste Management Limited)
SECOS Group Limited (ASX: SES)
SECOS Group Limited is a leading developer and manufacturer of sustainable packaging materials. SECOS supplies its proprietary biodegradable and compostable resins, packaging products and high-quality cast films to a blue-chip global customer base. They are currently investing $2 million over three years to develop a world class Research and Development (R&D) Centre in Australia whose key focus will be to develop better compostable biopolymer products for food and packaging applications, worldwide.
Gross Revenue FY2020: AUD $21.04M
Market Capitalisation: AUD $171.5M
(Source: SECOS Group Limited)
Lithium Australia (ASX: LIT)
Lithium Australia aspires to 'close the loop' on the energy-metal cycle. Lithium Australia's technology comprises the SiLeach (R) and LieNA (R) lithium extraction processes, along with superior cathode material production courtesy of VSPC Ltd. They aim to establish a vertically integrated lithium processing business. Lithium Australia is developing a hydrometallurgical technique that recovers all metals, including lithium from spent lithium-ion batteries.
Gross Revenue FY2020: AUD $674.753K
Market Capitalisation: AUD $104.80M
(Source: Lithium Australia)
EcoGraf (ASX: EGR)
EcoGraf Limited is focused on becoming a long-term partner in supplying eco-friendly natural flake and battery anode material to customers in both established (refractory, decarburised, lubricant) and emerging (lithium-ion battery) global markets. EcoGraf utilises an eco-friendly purification process that has been perfected over three years to create the spherical graphite product.
Gross Revenue FY2020: AUD $52K
Market Capitalisation: AUD $321.63M
(Source: EcoGraf Limited)
Which waste management company should I invest in?
Each company listed above is driven to provide profitable solutions to the carbon emission crisis, but each company will have a different environmental, social and governance performance and choosing the right company to invest in comes down to you!
Is investing in shares and stocks right for my personal situation? Talk to a professional advisor first! You can find a list of ethical advisors on the RIAA website here or learn about how to invest in shares on the Money Smart website.
Which company reflects my values and impact interests?
How much am I willing to invest?
Is my portfolio of stock diversified? (Don't put all your eggs in one basket! A rule of thumb is to invest in various industries and locations to reduce risk)
How has the company previously performed?
How is the company performing from an Environmental, Social, and Governance (ESG) perspective?
Research is key, and through the links provided, you can investigate the companies further. You can also sign up for the Bloom Impact Investing app where you’ll be able to track the value of your cleantech and clean energy shares, how much C02 you’re saving, and hear stories from the companies you invest in.
This blog post has been prepared by Bloom Impact Investing to provide readers with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. We do not express any view about the accuracy or completeness of information that is not prepared by us and no liability is accepted for any errors it may contain. The information contained in this blog is of a general nature only, and does not take into account your objectives, financial situation or needs and is not to be taken into account as containing any personal investment advice or recommendation. No warranty is provided as to the accuracy, reliability and completeness of the information in this publication and you rely on this information at your own risk. Any past performance information in the publication is not a reliable indicator of future performance.