We’ve got some exciting news: not only can you support a greener future, but you can also make your future greener! We’re talking money-green and the exciting future of investing in Cleantech.
But where do you start? And how can you know if a company listed on a stock exchange is actually helping combat climate change with Cleantech?
Well, you’re in the right place. We at Bloom have prepared this blog to get you started with some companies active in cleantech - more specifically, the electricity sector and the companies active in Project Drawdown’s energy storage solution.
The list below is of course not financial advice, and not an exact reflection of the Bloom climate impact fund holdings. Always strive to complete your own research and seek financial advice before making financial decisions. This list is a snapshot to inspire you to start your climate impact investing journey using some of the research we have completed in building our portfolio.
Electricity Sector
Although the electricity sector has the potential to be our strongest tool against climate change, it’s also the worst carbon emitter. According to Project Drawdown, the electricity sector generates 25% of the world’s carbon emissions. That’s more than what our land sinks can hold, meaning a lot of those emissions are being released into the atmosphere.
But we already have the means necessary to make a large impact on our electricity emissions.
Solar, wind, and hydropower are examples of alternative sources for oil, and natural gas power. But before we go further, here are some terms necessary to know.
The unit of measurement for electricity is ‘watt’ and when discussing large amounts of watts the two terms often used are ‘Megawatts’ (MW) and ‘Gigawatts’ (GW), both of which will be used often in this article. In terms of ‘watts’, there are 1 million in a Megawatt and 1 billion in a Gigawatt. Let’s put that in perspective…
1 GW is equal to:
3.125 Million Solar Photovoltaic (PV) Panels
Or 364 Utility-Scale Wind Turbines
Or 110 Million LED Lights
Or 2,000 Corvette Z06s
Or roughly 1.3 Million Horses
This sort of power, 1 GW, is enough to power 750,000 homes.
But what is Project Drawdown’s energy storage solution?
The energy storage impact solution includes standalone batteries and batteries found in electric vehicles. These batteries can enable 24/7 electricity supply even when the sun isn’t shining or the wind isn’t blowing.
Currently, distributed energy storage is practised only on a very small scale. The systems are generally based on batteries, which are expensive. Moreover, policy incentives, such as time-of-use electricity pricing, are lacking in many areas. This has recently begun to shift, however, as battery prices drop and utilities seek to avoid costly infrastructure upgrades in the face of rising demand. Increased use of distributed generation has also provided an incentive to use distributed energy storage. Distributed storage is poised to become a major element of the energy system.
Now, let’s check out some companies that are making a positive impact on climate change through energy storage.
We do not endorse or recommend investing in these companies specifically. Data has been sourced from Simply Wall Street and company reports.
Roll Call
Before we kick things off, here’s a guide on the featured financial information below.
Company performance:
When the information was collected from Simply Wall Street (12th of December, 2022)
Market Cap: The dollar value of their stock multiplied by the total number of pending shares
Earnings (TTM): The company's wages or money earned trailing over the previous 12 months.
Revenue (TTM): The company's total profits generated operations like sales trailing over the previous 12 months.
Electric Cars, Hybrid Cars, Distributed Energy Storage
Borgwarner Inc is an American multinational automotive supplier, delivering innovative and sustainable mobility solutions for the vehicle market. They offer clean propulsion and efficient technology solutions (such as turbochargers or exhaust gas recirculation (EGR) modules) for light-, medium- and heavy-duty vehicles. Through their product and expertise, they help the automotive industry transition from combustion engines to a cleaner e-mobility future.
BorgWarner performance:
December 12, 2022
Market Cap US$9.48b
Earnings (TTM) US$818.00m
Revenue (TTM) US$15.35b
Impact: 88% of revenue is "from clean and emissions-reducing products" (from Combustion emissions-reducing to fully electric)
Distributed Energy Storage, Electric Vehicles
Livent supplies high-quality lithium products for energy storage and battery systems, polymer, grease, aerospace, pharmaceuticals and agrochemical, and industrial markets. Livent operates its entire lithium process, from extracting the brine to processing the lithium. The lithium Livent provides is essential for energy storage solutions (ESS) lithium batteries for electric vehicles.
Livent performance:
December 12, 2022
Market Cap US$4.27b
Earnings (TTM) US$198.30m
Revenue (TTM) US$716.70m
Impact: Invented LIOVIX, which can improve lithium-ion battery performance, reduce manufacturing costs, and enhance safety and sustainability.
Building Automation Systems, Utility-Scale Energy Storage, Distributed Energy Storage, Grid Flexibility, Utility-Scale Solar Photovoltaics
SMA Solar Technology provides premium solar and battery inverter solutions for residential, commercial, and utility-scale sectors, compatible with both on and off-grid systems.
SMA performance:
December 12, 2022
Market Cap €2.38b
Earnings (TTM) -€27.30m
Revenue (TTM) €962.84m
€: Currency sign for the Euro
Impact: SMA is committed to net-zero emissions as they strive to source 100% of its electricity globally from renewables - as of 2021, its global ratio is 98%.
You can make an impact!
These companies are just the tip of the iceberg!
Here at Bloom, we have created a unique and new Climate Impact Investing Methodology. The Bloom fund invests in businesses like those in this article to create a positive climate impact and accelerate the world’s transition to a cleaner future while striving to generate financial returns for its investors. Each business that Bloom considers must meet an impact solution, like energy storage, from Project Drawdown or Climate Works, and the asset itself needs to be a sound investment financially. The info in this article is a glimpse into our research and represents the businesses we believe meet these criteria.
The above list is not an exact reflection of the bloom climate impact fund holdings, nor an exhaustive list of all the cleantech investing opportunities that exist. This list is a snapshot to inspire you to start your climate impact investing journey using some of the research we have completed in building our portfolio.
Want to know more?
Get impact investing news, investment updates, and upcoming Bloom events through the Bloom Impact Investing App. Download the Bloom app today and start using your investments to fight climate change. And keep an eye out for our next eBook, a culmination of cleantech investment companies that are actively and positively impacting climate change.
Don't forget, you can also join the Bloom community if you want to learn more about sustainable investing. We have an upcoming array of events where you can learn how to make a positive impact on your finances.
The information on this website is prepared by Bloom Impact Investment Services Pty Ltd (CAN 651 965 098 AR 001294778), who is an authorised representative of Cache Investment Management Pty Ltd (CAN 624 306 430 AFSL 514 360) (Cache). Bloom’s financial products are issued by Melbourne Securities Corporation Limited (ACN 160 326 545 AFSL 428 289), as disclosed in the relevant PDS. All information provided in this article is general information only and does not take into account your personal circumstances, financial situation or needs. Before making a financial decision, you should read the relevant product disclosure statement and target market determination to consider whether the product is right for you and whether you should obtain advice from a professional financial adviser.