Solar stocks lead ESG performance in tough first half for climate and markets – 24/7 Wall St.


By David Callaway, Callaway Climate Analytics

Investors who hoped to offset the dangerous conditions of global warming this year with opportunities in environmental, social and governance (ESG) stocks were generally left behind in the first half. But as we delve deeper into the sector, some surprising names have weathered the turmoil.

Solar stocks seem to have weathered the inflation/interest rate/Ukraine storm better than most, as well as natural resources stocks. Solar stocks are down only about 3% so far this year, compared to a 22% drop in the Callaway Climate Index of 50 environmental stocks and about 17% for the S&P 500.

These include big first-half gains by JinkoSolar Holding $JKS up 33%, Daqo New Energy $DQ up 59%, and Enphase Energy $ENPH , up 17%, of which we hold a small amount. Natural resources stocks are collectively down about 11% and wind energy stocks are down about 16.5%.

Electric vehicle stocks, led lower by Tesla $TSLA , were the worst performers, down 36% in the first half. But Tesla rose 9% on Thursday after the company released its second-quarter results on Wednesday. Rivian $RIVN the shares, which debuted in November, are down almost 70%.

ESG stocks have taken their place in the media as the bear market and lack of progress in the political climate goad investors on the potential of the sector, but by breaking down these results we can begin to see where the recovery will be strongest. when the bear race finally ends.

More information below. . . .

ESG Fund Groups Lead Vote Changes for Shareholder Democracy

. . . . As research grows, greater shareholder involvement in the environmental and social efforts of their companies generates a real impact, Marc-Hubert looks at the movement to bring direct voting to small shareholders of mutual funds and exchange-traded funds. It turns out that some of the fund companies pushing hardest for more environmental action from their holdings are also early pioneers of voting mechanisms that give shareholders more say. . . .

Read the full column

A selection of this week’s subscriber-only information

. . . . More and more, it seems to be the time for electric vehicles in the United States Accelerated by a huge spike in gas prices, a quarter of Americans now say their next car will be an electric vehicle. The numbers make it very tempting, with some electric vehicles now paying for themselves in around a year. The big winner: Elon Muskof which Teslas $TSLA take nearly three-quarters of the market. Read more. . . .

. . . . You might think gas stations would be the last entity who would like something to do with electric vehicles. But a few big chains — those focused on selling things other than gasoline — are taking part in the program by partnering with electric vehicle makers to set up charging networks. Learn more here. . . .

. . . . Outside the troubled Chevy BoltGeneral Motors $GM was late for the EV game. But now things are accelerating, with Tesla firmly in CEO Mary Barra’s sights. In particular, GM thinks it has a worthy rival to Tesla’s best-selling Model Y in its all-electric Chevy Blazer. With Ford also making moves – and apparently ahead of GM – how is this all going to play out? Learn more here. . . .

. . . . The good news for Texas’ notoriously choppy power grid: Solar helps keep AC power on. The bad news: Solar and wind power are unpredictable and the infrastructure just isn’t there to fill the supply gaps. What to do? Batteries and an improved distribution system. Read more. . . .

Editor’s choice: “We have been warned”; moreover, is blue hydrogen a stranded asset?

The heat spreads

As heat waves across the world threaten food supplies, transportation and even lives, officials are now warning of even more heat-related dangers in the United States. A heat wave that has baked the south-central part of the United States is spreading and has more than 100 million people under heat alerts from California to the East Coast. High temperatures and humid conditions are expected to increase throughout the weekend in many areas. “The next few days will bring extreme heat across the state with dangerous heat indices of up to 100,” the New York Governor said. Kathy HochuI said in a statement. “I urge all New Yorkers to prepare for the heat and humidity this week and to watch the weather closely over the next two days. As New Yorkers, we take care of each other , so remember to watch out for neighbors, especially the elderly, those with young children, and those with disabilities Hochul’s warnings were echoed by officials from Texas to Massachusetts.

Could blue hydrogen become a stranded asset?

Blue hydrogen is at risk of becoming a stranded asset due to political and market forces, according to ISS ESG, the responsible investing division of Institutional Shareholder Services Inc. Siri Hedreen written for S&P Global Market Analysis that blue hydrogen is derived from natural gas but with carbon capture technology to offset emissions. “As such, the fuel has been favored by some natural gas companies, while others tout blue hydrogen as a lower-cost compromise between green hydrogen and gray hydrogen.” Although carbon capture technology has been shown to capture up to 90% of carbon dioxide emissions, ISS said “such a rate has never been achieved on a commercial scale”. For this and other reasons, Hedreen writes, the ISS analysis advises investors to approach hydrogen “cautiously and with careful consideration of the specifics of each project.”

Fight against time and climate change to preserve heritage sites

Climate change is destroying heritage sites around the world, and researchers say historic landmarks could disappear altogether unless they are protected from environmental damage, writes Alex Whittingin Horizon magazine via Whitting writes on the European Hyperion project, which develops risk mapping tools and helps local authorities reduce the vulnerability of historic sites. The project aims to provide the appropriate tools to better understand the effects of climate change, the ravages of time, intense geological phenomena and accidental and extreme weather conditions on archaeological sites and cultural heritage monuments. The report cites Angelos Amditis, coordinator of the Hyperion project, said: “If we don’t act quickly, if we don’t allocate the right resources and knowledge, and… create a common alliance to solve the problems related to climate change, we will pay dearly. … We could (completely) lose well-known landmarks in Europe and around the world … our children may not have the chance to see them, except on video. The Hyperion project also uses data from European Copernicus satellites to map risk areas and collect climate data.

Words to live. . . .

“A less icy Arctic is coming, and generally that’s not a good thing. Climate change is warming this region twice as fast as the global average, threatening wildlife and native communities. — Tatiana Schlossberg.

Callaway Climate Information Bulletin

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