According to senior account manager Warren Love at We Financial, the rising concern surrounding climate change can lead to a rise in ASX-listed renewable energy stocks as many investors have ethical concerns about the types of investments that they make popular for environmental, social, and Governance investments. Therefore, many investors can now prioritise ethical issues that focus on social impacts and sustainability.
In fact, the increased demand for more ESG investment options in Australia has led to the creation of various ETFs like Australian Ethical. Even Major fund managers are issuing statements supporting these investment options, as they are allocating funds to more sustainable and ethical companies. Warren Love of We Financial has found some of the top ASX-listed ESG investment options that individuals should consider.
Origin Energy Ltd (ASX: ORG)
Origin Energy can be seen as a controversial pick for ESG investments, as it is one of Australia’s largest coal-run power plants in New South Whales. However, the company seems to understand that the future for energy is renewable, which has motivated them to pivot into solar energy.
Along with being one of the country’s biggest installers of home solar panels, ORG is also playing a major role in the solar power sector. The company plans to source upwards of 25% of its energy capacity from solar farms and other renewable projects as soon as they go online. In an effort to show their investors that they are pivoting to renewables, they are also working with many wind and solar farms to generate electricity, which includes Stockyard Hill Wind Farm and Darling Down’s Solar Farm.
Meridian Energy Ltd (ASX: MEZ)
According to Warren Love of We Financial, Meridian is possibly the most impressive of all the additions in this list, as it is both New Zealand’s largest power generator and derives all ofits power from renewable forms of energy. That is correct; 100% of all power generated is from a renewable source.
Their portfolio for renewable resources includes solar installations on a variety of commercial sites, five wind farms, and up to seven hydropower stations. In fact, their 122 MW hydro station is the biggest in the country, situated under the Fiordland National Park, which also happens to be a UNESCO world heritage site.
Mercury NZ (ASX: MCY)
Similar to Meridian Energy in New Zealand, Mercury NZ runs on 100% renewable energy, with its primary source of that energy coming in the form of hydropower installations. Thanks to a total of nine hydropower installations, it can very effectively use only renewable sources of energy.
Other major sources of renewable energy for them include five geothermal plants and four wind farms. Mercury NZ’s hydropower stations are responsible for 10% of the country’s annual supply of electricity. They are also developing the Turitea Wind Farm, which will be the biggest wind power facility in the country once completed. Its focus on providing clean and sustainable energy makes it an especially popular choice among many ESG investors.
To conclude, We Financial senior account manager Warren Love has stated that these are some of the most popular ASX-listed ESG investment options. While others exist, these are companies that have inspired the most confidence in their investors.
