Investors are increasingly looking to invest in companies with strong ESG mandates - companies which are Environmentally conscious, Socially responsible, and well Governed. Furthermore, there is growing evidence of the link between share price outperformance, and companies who outperform in the ESG categories.
Two recently-listed Exchange Trades Funds (ETFs) which focus on the Environmental aspect of this growing trend are the VanEck Vectors Global Clean Energy ETF (ASX Ticker Code: CLNE), and the BetaShares Climate Change Innovation ETF (ASX Ticker Code: ERTH).
ERTH provides investors with global exposure to companies which derive a majority of their revenues from products or services which help address climate change. Holdings include companies involved in clean energy production, green transport solutions, waste management, sustainable product development, and improved energy efficiency and storage. Top holdings in the fund include Zoom Video Communications, DocuSign and Tesla. Further information for ERTH can be accessed here.
CLNE invests in global companies operating in the production of clean energy and associated technologies, with top holdings including Plug Power and Enphase Energy. Further information for CLNE can be accessed here.
We at Bennett & Co continue to consider investments for clients which have a strong ESG focus - if you would like to discuss further, please call Richard Bennett (07 3876 8131 or 0412 055 702) or Tony Garnham (07 3184 2520).