{"id":124738,"date":"2019-11-21T20:46:15","date_gmt":"2019-11-21T20:46:15","guid":{"rendered":"https:\/\/stockchase.com\/discover\/?p=124738"},"modified":"2019-11-21T20:46:15","modified_gmt":"2019-11-21T20:46:15","slug":"going-green-for-the-world-and-your-portfolio","status":"publish","type":"post","link":"https:\/\/stockchase.com\/discover\/going-green-for-the-world-and-your-portfolio\/","title":{"rendered":"Going Green for the World and Your Portfolio"},"content":{"rendered":"<p>If a healthcare company that pays a rising dividend was accused of mistreating its patients, would you buy it on a pullback? Would you invest in a small-cap solar energy utility or a giant oil company?<\/p>\n<p>Of course, every investor wants to make money, but our values influence what we buy. More and more investors are putting their money into environmental, social and corporate governance (ESG) stocks. These are companies that boast high environmental, social and governance scores. They either have robust environmental practices, like reducing their waste; offer safe working conditions; enforce gender parity at the executive level; and\/or maintain transparent accounting practices.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Discover What&#039;s Inside<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/stockchase.com\/discover\/going-green-for-the-world-and-your-portfolio\/#Skeptics_may_ask_doesnt_ESG_reduce_company_profits\" >Skeptics may ask, doesn&#8217;t ESG reduce company profits?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/stockchase.com\/discover\/going-green-for-the-world-and-your-portfolio\/#Sustainable_energy_is_a_solid_long-term_hold\" >Sustainable energy is a solid long-term hold<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/stockchase.com\/discover\/going-green-for-the-world-and-your-portfolio\/#Buying_opportunity\" >Buying opportunity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/stockchase.com\/discover\/going-green-for-the-world-and-your-portfolio\/#High_ESG_scores_to_protect_their_reputation\" >High ESG scores to protect their reputation<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Skeptics_may_ask_doesnt_ESG_reduce_company_profits\"><\/span>Skeptics may ask, doesn&#8217;t ESG reduce company profits?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The answer: no.<\/p>\n<p>Just compare the charts of Canadian oil stocks (i.e. <a href=\"https:\/\/stockchase.com\/company\/view\/1176\/SU-T\">Suncor<\/a>, <a href=\"https:\/\/stockchase.com\/company\/view\/286\/CNQ-T\">CNQ<\/a>, <a href=\"https:\/\/stockchase.com\/company\/view\/4187\/WCP-T\">Whitecap<\/a>) with renewable energy stocks (<a href=\"https:\/\/stockchase.com\/company\/view\/78\/AQN-T\">Algonquin<\/a>, <a href=\"https:\/\/stockchase.com\/company\/view\/876\/NPI-T\">Northland Power<\/a>, <a href=\"https:\/\/stockchase.com\/company\/view\/525\/BEPUN-T\">Brookfield Renewable<\/a>) and see which shareholders are richer.<\/p>\n<p>Another answer, one with long-term implications, is that younger investors are investing their money in ESG.<\/p>\n<p>A recent <a href=\"https:\/\/www.rbcwealthmanagement.com\/ca\/en\/research-insights\/the-shifting-landscape-of-global-wealth\/detail\/\" target=\"_blank\" rel=\"noopener\">study<\/a> by the <a href=\"https:\/\/stockchase.com\/company\/view\/1083\/RY-T\">Royal Bank<\/a> and <i>The Economist <\/i>states, &#8220;Younger investors are more than twice as likely to adopt an ethical approach to investing as older investors&#8230;.with more than four fifths of younger investors viewing it [ESG] as increasingly important.&#8221; Those millennials are the future of stock markets.<\/p>\n<p>So, follow the money and do good. Here are some ways:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2019\/11\/brook-1-760x254.jpg\" alt=\"brook\" width=\"825\" \/><\/p>\n<p><span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/stockchase.com\/company\/view\/525\/BEPUN-T\">Brookfield Renewable Partners<\/a><\/u><\/span><\/span><\/p>\n<p>Part of the highly regarded family of Brookfield stocks, BEP&#8217;s portfolio of hydro, wind and solar energy companies spans North America, Colombia, Brazil, Europe, India and China. In 52 weeks, BEP has leapt from $33 to $60, returning 64% over the past 12 months and easily outpacing the TSX. BEP currently pays a 4.6% dividend yield and boasts a 36-month Beta of 0.80.. <a href=\"https:\/\/stockchase.com\/expert\/view\/1424\/Tim-Nash\">Tim Nash<\/a>, who specializes in ESG investing, strongly recommends this (and green utilities in general), noting that older investors who can&#8217;t find yield from current low interest rates are turning to this sector instead. <a href=\"https:\/\/stockchase.com\/expert\/view\/106\/Larry-Berman-CFA-CMT-CTA\">Larry Berman<\/a> seconds that notion.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Sustainable_energy_is_a_solid_long-term_hold\"><\/span>Sustainable energy is a solid long-term hold<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/stockchase.com\/expert\/view\/1424\/Tim-Nash\">Nash<\/a> does warn that if a downturn does not happen, investors may shift their money into growth stocks instead, but he believes sustainable energy is a solid long-term hold. Add now or enter on a pullback, say <a href=\"https:\/\/stockchase.com\/expert\/view\/1274\/Christine-Poole\">Christine Poole<\/a> and <a href=\"https:\/\/stockchase.com\/expert\/view\/1324\/James-Telfser\">James Telfser<\/a>. <a href=\"https:\/\/stockchase.com\/company\/view\/525\/BEPUN-T\">BEP.UN<\/a> is one of those rare stocks to receive unanimous buy signals from analysts. (For more information on green utilities, see our recent <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/stockchase.com\/discover\/battle-of-the-stocks-canada-round-2\/\"><i>Battle of the Stocks: Canada, Round 2<\/i><\/a><\/u><\/span><\/span><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2019\/11\/xylem-1-760x254.png\" alt=\"xylem\" width=\"825\" \/><\/p>\n<p><span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/stockchase.com\/company\/view\/5436\/XYL-N\">Xylem<\/a><\/u><\/span><\/span><\/p>\n<p>Like it or not, the future of this planet relies more and more on fresh water.<\/p>\n<p><span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.killik.com\/the-edit\/why-michael-burry-is-investing-in-water\/\" target=\"_blank\" rel=\"noopener\">Michael Burry<\/a><\/u><\/span><\/span>, who called the subprime lending meltdown way ahead of anyone else and made a fortune in shorting it, is now investing in water. According to <a href=\"https:\/\/stockchase.com\/expert\/view\/1274\/Christine-Poole\">Christine Poole<\/a>, <a href=\"https:\/\/stockchase.com\/company\/view\/5436\/XYL-N\">Xylem<\/a> is an excellent way to play this resource. <a href=\"https:\/\/stockchase.com\/company\/view\/5436\/XYL-N\">Xylem<\/a> repairs and upgrades aging water infrastructure in North America, and builds new systems in emerging markets which comprise 20% of its business.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Buying_opportunity\"><\/span>Buying opportunity<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In 2016, <a href=\"https:\/\/stockchase.com\/company\/view\/5436\/XYL-N\">Xylem<\/a> bought <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.xylem.com\/it-it\/about-xylem\/newsroom\/press-releases\/xylem-inc.-to-acquire-sensus-a-global-leader-in-smart-meters-network-technologies-and-advanced-data-analytics-solutions-for-the-water-industry-for-$1.7-billion-in-cash\/\" target=\"_blank\" rel=\"noopener\">Sensus<\/a><\/u><\/span><\/span>, a company that offers smart metering for water as well advanced analytics. This acquisition improves <a href=\"https:\/\/stockchase.com\/company\/view\/5436\/XYL-N\">Xylem<\/a>&#8216;s operating efficiency. The company boasts robust secular growth as well as a high ESG score of 78 (in the 96<sup>th<\/sup> percentile). Year-to-date, <a href=\"https:\/\/stockchase.com\/company\/view\/5436\/XYL-N\">Xylem<\/a> is up 14%, though has recently suffered a pullback (from $85 to $75), which <a href=\"https:\/\/stockchase.com\/expert\/view\/1274\/Christine-Poole\">Poole<\/a> interprets as a buying opportunity.<\/p>\n<p>Over five years, <a href=\"https:\/\/stockchase.com\/company\/view\/5436\/XYL-N\">Xylem<\/a> has returned exactly 100%, annualized to a whopping 20%. It pays a modest dividend of 1.2%.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2019\/09\/apple-1-760x254.png\" alt=\"apple\" width=\"825\" \/><\/p>\n<p><a href=\"https:\/\/stockchase.com\/company\/view\/4\/AAPL-Q\">Apple<\/a><\/p>\n<p>Some may be surprised to see a tech giant on this list, but <a href=\"https:\/\/stockchase.com\/company\/view\/4\/AAPL-Q\">Apple<\/a> actually scores in the 99<sup>th<\/sup> percentile for environment, largely for issuing a $1 billion green <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.reuters.com\/article\/us-apple-climate-greenbond\/apple-issues-1-billion-green-bond-after-trumps-paris-climate-exit-idUSKBN1941ZE\" target=\"_blank\" rel=\"noopener\">bond<\/a><\/u><\/span><\/span> in 2017 to finance clean energy and environmental projects.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"High_ESG_scores_to_protect_their_reputation\"><\/span>High ESG scores to protect their reputation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Elsewhere, <a href=\"https:\/\/stockchase.com\/company\/view\/4\/AAPL-Q\">Apple<\/a> scores decidedly lower in social and governance, in part because Chinese manufacturing partners mistreat their employees (social) and in evading income <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/insights.reputationinstitute.com\/blog-ri\/how-tax-evasion-is-taxing-on-reputation-what-nike-can-learn-from-apple\" target=\"_blank\" rel=\"noopener\">taxes<\/a><\/u><\/span><\/span> (governance). All in all, <a href=\"https:\/\/stockchase.com\/expert\/view\/1424\/Tim-Nash\">Tim Nash<\/a> would still be happy buying <a href=\"https:\/\/stockchase.com\/company\/view\/4\/AAPL-Q\">Apple<\/a> shares. He explains that giants like <a href=\"https:\/\/stockchase.com\/company\/view\/4\/AAPL-Q\">Apple<\/a> need to maintain high ESG scores to protect their reputations. After all, a lot of millennials, who drive ESG investing, believe in the <a href=\"https:\/\/stockchase.com\/company\/view\/4\/AAPL-Q\">Apple<\/a> brand and its values.<\/p>\n<p>As for <a href=\"https:\/\/stockchase.com\/company\/view\/4\/AAPL-Q\">Apple<\/a> stock itself, what more is there to add about one of the most coveted and successful stocks of all time? In the past year, shares have rocketed from $164 to $267 (surpassing its target price of $253), and the company boasts a market cap of $1.195 trillion (with a T), even as it valuation remains steady, notes <a href=\"https:\/\/stockchase.com\/expert\/view\/1209\/Don-Lato\">Don Lato<\/a>. Its cloud services, iPhone, app stores are all thriving. <a href=\"https:\/\/stockchase.com\/company\/view\/4\/AAPL-Q\">Apple<\/a> is doing good and making money.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2019\/11\/hannon-1-760x254.png\" alt=\"hannon\" width=\"825\" \/><\/p>\n<p><span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/stockchase.com\/company\/view\/5867\/HASI-N\">Hammond Armstrong Sustainable Infrastructure<\/a><\/u><\/span><\/span><\/p>\n<p>There are even ESG REITs, like <a href=\"https:\/\/stockchase.com\/company\/view\/5867\/HASI-N\">HASI<\/a>. <a href=\"https:\/\/stockchase.com\/company\/view\/5867\/HASI-N\">HASI<\/a> invests in energy efficient and green energy projects in the U.S. It pays a robust 4.58% dividend yield and has returned 113% over five years or over 22% annualized. Its one-year return is in line with American indices at over 23%. If stocks or REITs aren&#8217;t for you, then consider an ETF, such as the <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/stockchase.com\/company\/view\/5936\/CHGX-Q\">Change Finance U.S. Large-Cap Fossil Fuel Free ETF.<\/a><\/u><\/span><\/span><\/p>\n<p>This is for those who want to invest in the broad S&amp;P without dirtying their hands in oil or weapons. <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/stockchase.com\/discover\/etfs-for-everyone-most-popular-etfs-for-your-portfolio\/\">More details here<\/a><\/u><\/span><\/span>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If a healthcare company that pays a rising dividend was accused of mistreating its patients, would you buy it on a pullback? Would you invest in a small-cap solar energy utility or a giant oil company? Of course, every investor [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":125813,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cwp_meta_box_check":"No","cwp_rev_product_name":"","cwp_rev_product_image":"","wppr_links":[],"cwp_rev_price":"","wppr_options":[],"wppr_pros":[],"wppr_cons":[],"footnotes":""},"categories":[17],"tags":[385,383,197,167,384,386,310,256,263,176],"class_list":["post-124738","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lists","tag-coporate-governance","tag-environmentalism","tag-esg","tag-etf","tag-green-investing","tag-millennials","tag-oil-stocks","tag-reit","tag-renewable-energy","tag-tech-stock"],"wppr_data":{"cwp_meta_box_check":"No"},"_links":{"self":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/124738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/comments?post=124738"}],"version-history":[{"count":0,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/124738\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media\/125813"}],"wp:attachment":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media?parent=124738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/categories?post=124738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/tags?post=124738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}