ESG Sustainability Investing

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>>> Veralto Corporation (VLTO) provides technology solutions that monitor, enhance, and protect resources worldwide. Its technologies address challenges across regulated industries, including municipal utilities, food and beverage, pharmaceutical, and industrials. The company core offerings include water analytics, water treatment, marking and coding, and packaging and color. It operates through two segments Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment improves the quality and reliability of water through brands, including Hach, Trojan Technologies, and ChemTreat. The PQI segment promotes consumer trust in products and help enable product innovation through brands, such as Videojet, Linx, Esko, X-Rite, and Pantone. Veralto Corporation was formerly known as DH EAS Holding Corp. and changed its name to Veralto Corporation on February 22, 2023. The company was incorporated in 2022 and is based in Waltham, Massachusetts. Veralto Corporation operates as a subsidiary of Danaher Corporation.

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>>> PTC Inc. (PTC) operates as software company in the Americas, Europe, and the Asia Pacific. The company provides

Windchill, a suite that manages all aspects of the product development lifecycle(PLM) that provides real-time information sharing, dynamic data visualization, collaborate across geographically distributed teams, and enabling manufacturers to elevate product development, manufacturing, and field service processes;

ThingWorx, a platform for Industrial Internet of Things;

ServiceMax, a field service management solutions enable companies to asset uptime with optimized in-person and remote service and technician productivity with mobile tools. and deliver metrics; and Arena, a SaaS PLM solution enables product teams to collaborate virtually to share product and quality information with internal teams and supply chain partners and deliver products to customers. It offers -

Codebeamer, an application lifecycle management for products and software development;

Servigistics, a service parts management solution; and FlexPLM, a solution provides retailers with a single platform for merchandising and line planning, materials management, sampling, and others. In addition, it offers -

Kepware, a portfolio of industrial connectivity solutions helps companies connect diverse automation devices and software applications;

Creo, a 3D CAD technology enables the digital design, testing, and modification of product models; and -

Onshape, a cloud product development platform that delivers computer-aided design with data management tools. Further, it offers -

Vuforia, an augmented reality (AR) technology enables the visualization of digital information in a physical context and the creation of AR enabling companies to drive results in manufacturing, service, engineering, and operations; and -

Arbortext, a dynamic publishing solution streamlines how organizations create, manage, and publish technical documentation. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts.

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https://finance.yahoo.com/quote/PTC/profile


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>>> 2 Buys and 1 Sell From Al Gore's Investment Company


Motley Fool

By Lee Samaha

Dec 14, 2023


https://www.fool.com/investing/2023/12/14/2-buys-and-1-sell-from-al-gores-investment-company/


KEY POINTS

The manufacturing sector is adopting digital technology at a fast rate.

This company's technology is becoming an increasingly important part of its customers' workflows.

Bioprocessing, life sciences, and diagnostics are excellent long-term markets, but COVID-19 has distorted this company's near-term earnings trajectory.

An industrial software company, a positioning and workflow company, and a leading life science, bioprocessing, and diagnostics company make up a list of stocks traded by Generation Investment Management.

Al Gore co-founded Generation Investment Management in London to invest in "sustainable capitalism." You do not have to share his politics or penchant for ESG (environmental, social, and governance) investing to take an interest in what stocks the company is holding. So here's a look at three stocks that Generation traded in the third quarter.


PTC is digitalizing the industrial sector

Given that these trades were made in the third quarter, it appears that Generation was premature in closing out its position in industrial software company PTC (PTC).

While any company that sells into the industrial and manufacturing sectors will be subject to some cyclical weakness (manufacturing conditions did deteriorate in the U.S. in 2023), the reality is that PTC has some powerful secular growth drivers behind it. Industrial companies want to transform their business operations digitally by using PTC's software solutions that run from initial design through manufacturing, servicing, and disposal.

PTC's software creates a so-called digital thread of any product its software designs; the benefit of this digital thread is it creates a digital twin of a physical asset at every step of design, production, and operations can be used to iteratively improve every aspect of a product's lifecycle.

These trends proved strong enough to lead PTC to grow its annual run rate, or ARR (the annualized value of its subscriptions and contracts, representing its recurring revenue) at 13% in its fiscal 2023. And management expects ARR to grow at a double-digit rate for at least the next few years.

With ARR being the crucial determinant of free cash flow (FCF), the latter is set to expand significantly in the coming years. As such, I think Generation was wrong to close its position in PTC, and despite the 38.8% rise this year, the stock still looks like a good value.


Trimble improves efficiency and reduces waste

Generation initiated a new position in positioning and workflow technology company Trimble (TRMB 0.10%) in the third quarter by buying $349 million worth of stock at the end of the quarter.

It hasn't been a vintage year for the company. The stock is down 7.2% in 2023. The company has experienced near-term weakness in some end markets, including residential construction, agriculture, and transportation. It slightly took down its full-year revenue and earnings guidance accordingly.

That said, just as with PTC, Trimble has an excellent long-term growth opportunity from adopting game-changing digital technology. In Trimble's case, its highly precise positioning technology can not only position assets (examples include transportation fleets, construction activity, smart farming, etc.) but also create valuable real-time data that can be used to generate actionable insights.

As such, Trimble's hardware, software, and analytics solutions can significantly improve its customers' workflow productivity. And, in a nod to Generation's commitment to the environment, Trimble's technology also helps improve sustainability.

For example, resources (fertilizer, pesticides, water, etc.) can be optimized in farming, more-efficient trucking routes reduce fuel consumption, and precise management of construction projects improves efficiency and reduces waste.

Trimble continues to grow its annualized recurring revenue at a double-digit rate, and just as with PTC, the company is set to improve its FCF generation significantly in the coming years.


Adding Danaher

Generation added about 265,000 shares to its existing holding in Danaher (DHR) and now has slightly more than 3 million shares in the life science and diagnostics company.

Danaher is an attractive company, but the distortive effect of the pandemic on its revenue and earnings sometimes makes it feel like you need a Ph.D. to understand them.

For example, there's Danaher's reported sales growth and its core sales growth (excluding acquisitions/divestitures and foreign currency movements). It also reports "base business core sales growth," which used to exclude revenue related to COVID-related diagnostic testing but, as of the first quarter of 2023, also includes COVID-related vaccines and therapies life science revenue.

In addition, the recent spinoff of its environmental and applied solutions business, Veralto (VLTO), and the recent acquisition of antibodies and life-science tools company Abcam will further complicate matters. Meanwhile, Danaher's bioprocessing and life sciences customers are struggling with funding issues due to rising interest rates.

Frankly, there's a tremendous amount of noise around Danaher's near-term revenue and earnings, and there's a strong argument for avoiding the stock until the dust settles. That said, the company's biotechnology, life sciences, and diagnostics end markets are all desirable, and the company is doubling down on them by spinning off Veralto and buying Abcam.

In addition, while COVID-related revenue is in decline, the pandemic did spur renewed interest and funding for vaccines and therapies (life sciences). Danaher grew its installed base of diagnostics equipment (increasing its potential consumables revenue from selling tests).

Lastly, as CEO Rainer Blair noted on the last earnings call, "Since 2018, underlying demand for biologics has grown at an average annual rate of approximately 10% and is continuing to grow in 2023."

There's little doubt its biotechnology revenue is set for long-term growth. As such, Danaher looks like a good stock for the monitor list while awaiting more clarity on its medium-term outlook.

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>>> What Makes AAON (AAON) a Lucrative Investment?


Insider Monkey

by Soumya Eswaran

February 7, 2024


https://finance.yahoo.com/news/makes-aaon-aaon-lucrative-investment-112143112.html


Baron Funds, an investment management company, released its “Baron Discovery Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the fund (Institutional Shares) returned 22.58% outperforming the 18.66% return for the Russell 2000 Growth Index. In Q4, the fund returned 12.44% compared to a 12.75% return for the index. Since its inception, investors in the fund have earned an annualized return of 12.42%, resulting in a more than tripled investment. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Discovery Fund featured stocks such as AAAON, Inc. (NASDAQ:AAON) in the fourth quarter 2023 investor letter. Headquartered in Tulsa, Oklahoma, AAON, Inc. (NASDAQ:AAON) is an air conditioning and heating equipment manufacturer. On February 6, 2024, AAON, Inc. (NASDAQ:AAON) stock closed at $72.07 per share. One-month return of AAON, Inc. (NASDAQ:AAON) was 0.31%, and its shares gained 40.29% of their value over the last 52 weeks. AAON, Inc. (NASDAQ:AAON) has a market capitalization of $5.855 billion.

Baron Discovery Fund stated the following regarding AAON, Inc. (NASDAQ:AAON) in its fourth quarter 2023 investor letter:

"AAON, Inc. (NASDAQ:AAON) is a high-quality manufacturer of HVAC equipment based in Tulsa, OK. It is a leader in providing premium, semi-custom HVAC equipment to the non-residential market with products that are more energy efficient, have longer life spans, and overall are better customized than peers to fit customers’ needs. This has driven significant outperformance over the past decade with organic growth in the high single-digit to low double-digit range compared to a low to mid-single-digit range for its peers.

Strong secular growth driven by decarbonization and broader ESG trends/ regulations is leading to greater demand for the types of products AAON specializes in such as energy efficient HVAC equipment that provides better air quality. To satisfy incoming regulations, peers have been forced to update their offerings and raise prices, while AAON today has ready-to-ship products satisfying all regulations. This dynamic is reducing the price premium between AAON’s products and the industry standards from 15% to 20% historically to a high single-digit level today. This price gap reduction is accelerating volume growth and enabling the company to take share. With the acquisition of BasX Solutions, a leader in data center, cleanroom systems, and custom HVAC units in December 2021, AAON expanded its addressable market by around 50% to over $30 billion in segments of the market where its focus on energy efficient units is extremely valuable. BasX’s adjusted cash flow (EBITDA) has roughly doubled over the past two years under AAON’s ownership. Lastly, CEO Gary Fields has undertaken a multi-year reorganization of the company’s management team and invigoration of company culture with a greater focus on selling and pushing the AAON solution from niche to mainstream. A simple illustration of the change brought by Gary is the opening of the exploration center this past April. This is a 28,000 square foot facility with over 10,000 square feet of exhibits and AAON products. We toured this facility at the company’s Analyst Day this past May where AAON units were placed next to competitor solutions. By purchasing and deconstructing competitors solutions, the team clearly highlighted the value of AAON’s superior products. They are more durable and have higher levels of efficiency. The team hoped that they would bring one to two potential customers a week to the center, but the demand has been so strong that one to two customers a day are visiting with a strong conversion from visits to eventual orders.

Going forward, with run-rate revenue at a little over $1 billion in a $30 billion market, there is ample opportunity ahead for AAON to grow and take market share. We expect mid-single-digit price increases across its product set along with mid-single-digit volume growth. The business is about 65% replacement/35% new construction with a mix of end-markets and limited exposure to new office construction. Given the growth opportunity ahead, the company is continuing to invest aggressively but at the same time has taken steps to maximize its physical footprint and, over time, will achieve greater levels of operating leverage. We believe the company will drive gross margins from the low 30% to the mid-high 30% levels with EBITDA margins expanding from the low to high 20% levels over our five year investment horizon. We calculate this combination of above market growth combined with significant margin expansion will allow us to double our investment over the next five years."

AAON, Inc. (NASDAQ:AAON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held AAON, Inc. (NASDAQ:AAON) at the end of third quarter which was 19 in the previous quarter.

We discussed AAON, Inc. (NASDAQ:AAON) in another article and shared the list of best growth stocks to buy according to billionaire Ray Dalio’s Bridgewater Associates. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

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>>> WASTE CONNECTIONS ANNOUNCES AGREEMENT TO ACQUIRE SECURE ENERGY'S WASTE DISPOSAL-CENTRIC ASSET DIVESTITURES IN WESTERN CANADA


PR Newswire

December 11, 2023


https://finance.yahoo.com/news/waste-connections-announces-agreement-acquire-120000117.html


TORONTO, Dec. 11, 2023 /PRNewswire/ -- Waste Connections, Inc. (TSX/NYSE: WCN) ("Waste Connections" or the "Company") today announced that its subsidiary, Waste Connections of Canada Inc., has entered into an agreement with Secure Energy Services Inc. (TSX: SES) ("Secure") to acquire a portfolio of 30 energy waste treatment and disposal facilities in Western Canada for an aggregate purchase price of CAD$1.075 billion plus certain adjustments as provided in the definitive purchase agreement.

The assets to be acquired by the Company include 18 treatment, recovery and disposal facilities; six landfills; four saltwater disposal injection wells; and two disposal caverns and represent all of the required divestitures as mandated by the Canadian Competition Tribunal following Secure's 2021 merger with Tervita Corporation. The oil and gas exploration and production ("E&P") waste treatment and disposal facilities are strategically located in key geographic Canadian oil and gas basins and serve a diverse customer base largely oriented to production. The combined annual revenue being acquired by the Company is currently estimated at approximately CAD$300 million.

The transaction remains subject to customary closing conditions, including receipt of Canadian Competition Bureau approval, and it is expected to close during the first quarter of 2024.

"This acquisition represents a unique opportunity for outsized value creation from the expansion of our presence in Canada through a network of E&P waste treatment and disposal assets located in the most attractive and growing basins," said Ronald J. Mittelstaedt, President and Chief Executive Officer. "The divestitures are a rare combination of high-quality, well-situated disposal and treatment assets with significant internal capacity for growth. With a heavy orientation towards serving customers engaged in energy production activity, these assets will be complementary to our U.S. R360 Environmental Solutions operations."

Mr. Mittelstaedt added, "Once closed, this acquisition is expected to add over 50 basis points to our consolidated EBITDA margin, given the high margin, disposal-oriented profile of the facilities. Moreover, we also expect this transaction to be accretive to earnings per share and free cash flow margins."

Waste Connections

Waste Connections (wasteconnections.com) is an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services, including by rail, along with resource recovery primarily through recycling and renewable fuels generation. The Company serves approximately nine million residential, commercial and industrial customers in mostly exclusive and secondary markets across 44 states in the U.S. and six provinces in Canada. Waste Connections also provides non-hazardous oilfield waste treatment, recovery and disposal services in several basins across the U.S., as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. Waste Connections views its Environmental, Social and Governance ("ESG") efforts as integral to its business, with initiatives consistent with its objective of long-term value creation and focused on reducing emissions, increasing resource recovery of both recyclable commodities and clean energy fuels, reducing reliance on off-site disposal for landfill leachate, further improving safety and enhancing employee engagement. Visit wasteconnections.com/sustainability for more information and updates on our progress towards targeted achievement.

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>>> Green Stock Selloff Deepens as Tesla Sentiment Sours


Bloomberg

by Greg Ritchie and Saijel Kishan

November 27, 2023


https://finance.yahoo.com/news/green-stock-selloff-deepens-tesla-010001246.html


(Bloomberg) -- The selloff that’s ripped through green stocks looks set to continue into 2024, bringing a fourth consecutive year of losses, according to Bloomberg’s latest Markets Live Pulse survey.

The negative sentiment appears poised to engulf a wider array of green asset classes, with Tesla Inc. seen at risk of losing its place among the 10 biggest stocks in the S&P 500. Almost two-thirds of the 620 MLIV Pulse respondents said they plan to stay away from the electric-vehicle sector, and 57% expect the iShares Global Clean Energy exchange-traded fund — which is down about 30% this year — to extend its slide in 2024.

The gloomy outlook comes as green investors navigate the shock of a post-pandemic world shaped by much higher interest rates. And, there’s also the persistent political backlash in many US states, as well as an evolving regulatory backdrop that has the potential to expose greenwashing and further hurt valuations.

Chat Reynders, who’s been a sustainable investor for three decades, calls the downturn in green assets a “watershed moment” for the industry. The hype that had surrounded going green to help address climate change has led some investors to take their eye off traditional financial metrics such as supply, demand and balance sheets, he said.

“We’ll look back and say this was an era of extraordinary speculation,” said Reynders, who helps oversee about $3.5 billion as co-founder of Reynders, McVeigh Capital Management in Boston. “Whether there was a meme stock or a green stock, everyone was marketing and selling extremely hard.”

Though MLIV Pulse respondents are broadly united in their bleak view of green stocks in the near term, the picture is different when the time horizon is extended. Most respondents expect they’ll need to shield portfolios from climate risk in the coming years.

Garvin Jabusch of Green Alpha Advisors in Louisville, Colorado, said the current selloff represents “a temporary pivot of capital away from renewables.” Brent Newcomb, president of Ecofin, which manages about $2 billion out of London and Kansas City, said he sees the market downturn as a buying opportunity and he’s adding to his positions in utility stocks.

And Bill Green of Climate Adaptive Infrastructure from Mill Valley, California, said it’s “a red herring” to look at the value of publicly traded solar or wind stocks and conclude that the energy transition has stalled.

“Public markets are notoriously fickle and have, in our view, overreacted to rising interest rates and supply chain challenges,” he said.

In the MLIV Pulse survey, 38% of respondents said miners of critical minerals ranked as the best investment option among climate-related offerings. But timing the upturn is proving hard.

Investors targeting environmental, social and governance goals had hoped this year would produce a rally thanks to historic levels of support in the form of packages such as the US Inflation Reduction Act. Instead, decades-high inflation and soaring interest rates ended up hammering a lot of traditional ESG stocks, with wind and solar standing out as some of the biggest losers.

A lot of clean energy companies are capital intensive, which makes them more vulnerable to higher borrowing costs than oil and gas companies with well-established rigs and platforms. To make matters worse, wind and solar producers have been hit by project delays exacerbated by supply-chain bottlenecks, derailing plans and increasing costs.

The next green asset class expected to see a decline is EVs, as battery-powered cars remain too costly for many households struggling with the long-term fallout of inflation. Tesla shares soared almost 140% this year through a July peak, but have since dropped about 20%.

Two years ago, Tesla was valued at $1.2 trillion, briefly making it the fifth-largest company on the S&P 500. Its market value has since fallen below $800 billion, ranking it the eighth largest in the benchmark index. Almost 50% of MLIV Pulse respondents expect it to drop out of the top 10 next year. Tesla investors are also figuring out how to respond to a chief executive who regularly shocks markets with highly controversial social media outbursts.

Yet the pace of climate change is forcing an inevitable pivot toward greener technologies, necessitating more investment.

“Next year is an important one for the implementation and renewal of decarbonization targets, as Paris Accord decarbonization efforts require additional, front-loaded, net investments,” according to Barclays Plc analysts led by Maggie O’Neal. “With 2023 appearing likely to be the warmest year on record, and 2024 potentially being similarly hot, adaptation and decarbonization will remain in focus.”

Against that backdrop, two-thirds of MLIV Pulse respondents expect climate change to affect portfolio values over the next three years. That echoes previous, similar surveys, with a Bloomberg Intelligence poll published earlier this month finding that 89% of investors acknowledge that ESG metrics are here to stay. And a poll of mostly US-based Bloomberg terminal users released in August found that about two-thirds said ESG is too important to ignore, even though they dislike the label.

O’Neal at Barclays also notes that the political backdrop remains key.

“Half of the world’s population will vote in elections in 2024,” she said. “As public policy drives many of the factors making ESG material to investors today, the outcomes of these elections matter.”

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>>> Republic Services, Inc. (RSG), together with its subsidiaries, offers environmental services in the United States. It is involved in the collection and processing of recyclable, solid waste, and industrial waste materials; transportation and disposal of non-hazardous and hazardous waste streams; and other environmental solutions. Its residential collection services include curbside collection of material for transport to transfer stations, landfills, recycling centers, and organics processing facilities; supply of recycling and waste containers; and renting of compactors. The company also engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill services. It serves small-container, large-container, and residential customers. As of December 31, 2022, the company operated through 353 collection operations, 233 transfer stations, 206 active landfills, 71 recycling centers, 6 saltwater disposal wells, and 7 deep injection wells, as well as 3 treatment, recovery, and disposal facilities in 41 states; and 20 treatment, storage, and disposal facilities. It also operates 73 landfill gas-to-energy and renewable energy projects, and 12 closed landfills. The company was incorporated in 1996 and is based in Phoenix, Arizona.

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[DrD]

New ETFs with Sustainability, ESG, and Electrification Themes

ZSC : USCF Sustainable Commodity Strategy Fund

Investment Strategy
The Fund seeks total return by providing broad exposure to commodities across three different sustainability focused themes: agriculture, renewable energy and electrification. The Fund will invest primarily in commodities derivative instruments and equity securities of issuers that are economically tied to particular commodities. The Adviser uses a proprietary methodology to select the commodities derivatives and equity securities in which the Fund invests. The Fund’s exposure to each of the three sustainability themes will be approximately equally weighted.

The Fund seeks to achieve a “net-zero” carbon footprint by purchasing carbon offset investments in an amount equal to the estimated aggregate carbon emissions of the Fund’s holdings.

- Upstream exposure to the growing sustainable agriculture, renewable energy, and electrification transition.

- Allocates higher exposures to those agricultural commodities, renewable energies and expected to be most positively impacted by the sustainable agriculture, renewable energy, and electrification transition.

- Designed sustainability to deliver these exposures while seeking a net-zero carbon outcome.
https://www.uscfinvestments.com/zsc

After all the Commodities Investments have been selected, the Adviser estimates the carbon emissions associated with each Commodities Investment. The Adviser relies on data published by governmental or multi-national organizations, scientific studies, investment bank/financial service companies, and internationally recognized environmental, social, and governance (“ESG”) research firms to make such estimates. The Adviser then calculates the aggregate carbon emissions from all Commodities Investments in the portfolio and the Fund purchases Carbon Offset Investments in the form of carbon credit futures contracts in an amount equal to the net emissions. The resulting portfolio will exhibit an approximate, net-zero carbon footprint. Carbon emissions estimates will be updated annually.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1597389/000117120023000345/i23309_etfzsc-485bpos.htm




ZSB : USCF Sustainable Battery Metals Strategy Fund

Investment Strategy
As the global economy undergoes Electrification, the infrastructure necessary to produce and store energy will require substantial amounts of certain metals. This may lead to rising prices for these metals over time.

The Fund also seeks to achieve a “net-zero” carbon footprint by purchasing carbon offset investments in an amount equal to the estimated aggregate carbon emissions of the Fund’s holdings.

- Upstream exposure to the growing electric vehicle (EV) battery and electrification adoption and energy transition.

- Allocates higher exposures to those green metals expected to be most positively impacted by the EV battery and electrification adoption and energy transition.

- Designed sustainability to deliver these exposures while seeking a net-zero carbon outcome.
https://www.uscfinvestments.com/zsb

After all the Metals Investments have been selected, the Adviser estimates the carbon emissions associated with each of the Metals Derivatives and each of the Metals Equities chosen by the methodology. The Adviser relies on data published by governmental or multi-national organizations, scientific studies, investment bank/financial service companies, and internationally recognized ESG research firms to make such estimates. The Adviser then calculates the aggregate carbon emissions from all Metals Investments in the portfolio and the Fund purchases Carbon Offset Investments in the form of carbon credit futures contracts in an amount equal to the net emissions. The resulting portfolio will exhibit an approximate, net-zero carbon footprint. Carbon emissions estimates will be updated annually.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1597389/000117120023000002/i22507_etf-485bpos.htm

https://www.uscfinvestments.com/home

USCF Investments Rings The Opening Bell - 4 August 2023

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>>> Targeting Toyota for Its Electric-Vehicle Heresy

Public pensions and proxy advisers try to punish the company using corporate governance as a pretext.


Wall Street Journal

By The Editorial Board

June 4, 2023


https://www.wsj.com/articles/targeting-toyota-for-its-electric-vehicle-heresy-akio-toyoda-hybrids-ev-climate-change-b5f67d6c?mod=hp_opin_pos_1

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172054855


It wasn’t long ago that Toyota’s hybrid vehicles were all the rage with the climate-change left. Now progressive investors and government pension funds are targeting the Prius manufacturer in a proxy campaign because it has questioned the climate lobby’s electric-vehicle orthodoxy.

Toyota discloses its CO2 emissions and has pledged to make all its vehicles carbon neutral by 2050. This should please the climate crowd. Yet progressive investors are seeking to oust Chairman Akio Toyoda and are pushing a resolution at its June 14 shareholder meeting to make the world’s largest auto maker disclose its climate-related lobbying.

News reports say the California Public Employees’ Retirement System (Calpers) and New York City’s public-worker pension funds have voted against Mr. Toyoda’s re-election, and the proxy advisory firm Glass Lewis has recommended that shareholders do so as well. They say Mr. Toyoda deserves the boot because Toyota’s board isn’t sufficiently independent of management.

But Toyota’s corporate governance model is old news. The sudden concern suggests it is merely a pretext for punishing Mr. Toyoda for the heresy of doubting the West’s hell-bent EV transition. He made news in December when he claimed that a “silent majority” in the auto industry “is wondering whether EVs are really OK to have as a single option. But they think it’s the trend so they can’t speak out loudly.”

He also emphasized that battery-powered EVs “are not the only way to achieve the world’s carbon neutrality goals.” Toyota is promoting its hybrids and plug-in hybrids as alternatives to battery-powered EVs. Plug-in hybrids contain an internal combustion engine that can kick in when the battery runs low, which alleviates range anxiety. They are also cheaper than EVs.

A Toyota memo to auto dealers in April explained the challenges to full electrification. For instance, “most public chargers can take anywhere from 8-30 hours to charge. To meet the federal [zero-emissions vehicle] sales targets, 1.2M public chargers are needed by 2030. That amounts to approximately 400 new chargers per day.” The U.S. isn’t close to meeting that goal.

Toyota also noted that “more than 300 new lithium, cobalt, nickel and graphite mines are needed to meet the expected battery demand by 2035,” and they could take decades to develop. “The amount of raw materials in one long-range battery electric vehicle could instead be used to make 6 plug-in hybrid electric vehicles or 90 hybrid electric vehicles.”

And here’s an even more striking statistic: “The overall carbon reduction of those 90 hybrids over their lifetimes is 37 times as much as a single battery electric vehicle.” These inconvenient truths undermine the climate religion and government mandates.

Speaking of which, progressives have attacked Toyota for lobbying against aggressive EV mandates. Toyota backed the Trump Administration’s lawsuit against California’s stringent emissions rules. It also pressed West Virginia Sen. Joe Manchin to oppose a $4,500 tax credit bonus for union-made EVs. Toyota isn’t unionized and has a large plant in West Virginia.

The shareholder campaign against Toyota shows how public pension funds and the proxy advisory duopooly of Glass Lewis and Institutional Shareholder Services (ISS) work in concert to exploit corporate governance to push progressive political goals. ISS, Calpers and New York city’s pension funds have all backed the shareholder resolution calling on Toyota to disclose its climate-related lobbying.

Mr. Toyoda deserves support for speaking the truth about EVs, and it’s a shame he’s the only auto leader with the courage to do it.

https://www.wsj.com/articles/targeting-toyota-for-its-electric-vehicle-heresy-akio-toyoda-hybrids-ev-climate-change-b5f67d6c?mod=hp_opin_pos_1

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>>> State Street Debuts 2 Paris-Aligned ETFs


Yahoo Finance

by Dan Mika

April 22, 2022


https://finance.yahoo.com/news/state-street-debuts-2-paris-193000543.html


State Street introduced two funds to the market Friday with the “Paris-Aligned” moniker, one a brand new fund and the other a reorganization of a $134 million ETF.

The SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) and the SPDR MSCI USA Climate Paris Aligned ETF (NZUS) debuted on the Nasdaq with respective expense ratios of 0.12% and 0.10%.

NZAC is the successor to the SPDR MSCI ACWI Low Carbon Target ETF (LOWC), which dropped the NYSE Arca as its primary listing exchange earlier this week. As LOWC, the fund tracked the MSCI ACWI Low Carbon Target Index and distantly trailed the $1.16 billion in assets accumulated by the iShares MSCI ACWI Low Carbon Target ETF (CRBN) despite both funds charging the same 20 basis points in expenses.

NZAC now follows the MSCI ACWI Climate Paris Aligned Index, which selects developed and emerging market companies that have half of the total emissions from direct and indirect business activity, and a 10% annual reduction in emission intensity compared to the nonadjusted MSCI ACWI Index.

NZUS’ index follows the same rationale for its index, which uses large and midcap companies in the U.S. as its investable universe. It’s taking on the iShares Paris-Aligned Climate MSCI USA ETF (PABU), which has $618 million in assets since launching in February and that follows the same index.

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>>> 11 Best Recycling Stocks To Buy Now


Insider Monkey

by Hamna Asim

December 21, 2022


https://finance.yahoo.com/news/11-best-recycling-stocks-buy-165844433.html


In this article, we discuss 11 best recycling stocks to buy now. If you want to see more stocks in this selection, check out 5 Best Recycling Stocks To Buy Now.

The global waste recycling services market was valued at $57.69 billion in 2021 and is expected to be worth $88.01 billion by 2030, indicating a compound annual growth rate of 4.8% during the forecast period of 2022 to 2030. The high volume of global economic activities has heightened the demand for recycling of waste materials.

The recycling sector has become an integral part of the urban infrastructure since it ensures the protection of both the human health and environment. In addition to higher urbanization and the expanding industrial sector, the growing agricultural production leads to more wastage from the agro-industries, thus driving the demand for the waste recycling services across the globe.

There are new entrants looking to resolve the lags in the waste management and recycling industry. For example, solar panels are considered green hardware, but older versions of panels are turning into hazardous waste. Thus, a California-based startup, SolarCycle, is using that waste by recycling parts of the older panels and disposing them off for profit. SolarCycle asserts that it can cheaply extract about 95% of the important materials in solar panels, like silver, silicon, copper, and aluminum. These can then be recycled or repurposed, resulting in an efficient circular solar economy.

Some of the best recycling stocks to invest in include Waste Connections, Inc. (NYSE:WCN), Waste Management, Inc. (NYSE:WM), and Republic Services, Inc. (NYSE:RSG).

Our Methodology

We selected the following recycling stocks based on positive analyst coverage, strong business fundamentals, and market visibility. We have assessed the hedge fund sentiment from Insider Monkey’s database of 920 elite hedge funds tracked as of the end of the third quarter of 2022. The list is arranged according to the number of hedge fund holders in each firm.

Best Recycling Stocks To Buy Now


11. Montrose Environmental Group, Inc. (NYSE:MEG)

Number of Hedge Fund Holders: 8

Montrose Environmental Group, Inc. (NYSE:MEG) was founded in 2012 and is headquartered in North Little Rock, Arkansas. It is an environmental services company in the United States, operating through three segments – Assessment, Permitting and Response, Measurement and Analysis, and Remediation and Reuse. It provides its services to the technology, media, chemical, energy, power and utility, industrial and manufacturing, financial, and engineering industries, as well as local, state, provincial, and federal government entities.

On December 12, BofA analyst Andrew Obin upgraded Montrose Environmental Group, Inc. (NYSE:MEG) to Buy from Neutral, citing a forecast for accelerating earnings growth in 2023. Montrose Environmental Group (NYSE:MEG) stock also rose on December 12 after the company announced it had acquired Huco Consulting, a company focused on safety and ESG goals, to expand its range of environmental services.

According to Insider Monkey’s data, 8 hedge funds were bullish on Montrose Environmental Group, Inc. (NYSE:MEG) at the end of the third quarter of 2022, compared to 9 funds in the last quarter. Richard Driehaus’ Driehaus Capital is the largest stakeholder of the company, with 342,461 shares worth $11.5 million.

Like Waste Connections, Inc. (NYSE:WCN), Waste Management, Inc. (NYSE:WM), and Republic Services, Inc. (NYSE:RSG), Montrose Environmental Group, Inc. (NYSE:MEG) is one of the best recycling stocks to consider buying.

Here is what Baron Funds specifically said about Montrose Environmental Group, Inc. (NYSE:MEG) in its Q2 2022 investor letter:

“Montrose Environmental Group, Inc.(NYSE:MEG), an environmental services company, underperformed during the quarter. Despite reiterating guidance for 2022, Montrose underperformed as the market penalized high-growth companies generally. We continue to remain positive on the company’s prospects and ability to achieve or beat its long-term growth target of over 20% per year. We remain particularly excited about Montrose’s potential to benefit from increased government regulation around PFAS chemical contamination and methane emissions.”


10. Quest Resource Holding Corporation (NASDAQ:QRHC)

Number of Hedge Fund Holders: 9

Quest Resource Holding Corporation (NASDAQ:QRHC) is a Texas-based company that provides solutions for the reuse, recycling, and disposal of waste streams and recyclables in the United States. It offers disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, goods destruction, food waste, plastics, cardboard, metal, glass, mixed paper, construction debris, and regulated and non-regulated solid, liquid, and gas wastes. Even without gaining new clients, existing customers will likely expand operations and require more waste services, making Quest Resource Holding Corporation (NASDAQ:QRHC) one of the premier recycling stocks to invest in.

On April 18, EF Hutton analyst Chip Moore initiated coverage of Quest Resource Holding Corporation (NASDAQ:QRHC) with a Buy rating and a $13 price target. As a leading national provider of waste and recycling solutions, Quest Resource Holding Corporation (NASDAQ:QRHC) is "differentiated" by its asset-light, national footprint, and ability to handle comprehensive waste streams, the analyst told investors. He noted that the company has also developed "valuable" data warehousing capabilities, offering full waste-stream services for its clients.

According to Insider Monkey’s data, 9 hedge funds were long Quest Resource Holding Corporation (NASDAQ:QRHC) at the end of September 2022, with collective stakes worth $29.5 million, compared to 7 funds in the prior quarter worth $14.7 million. Nelson Obus’ Wynnefield Capital is the leading position holder in the company, with 2.5 million shares worth $21.7 million.

Here is what Long Cast Advisor specifically said about Quest Resource Holding Corporation (NASDAQ:QRHC) in its Q2 2022 investor letter:

“Quest Resource Holding Corporation (NASDAQ:QRHC) borrowed heavily to purchase Rome RWS, Inc., and with results from the acquired company not yet fully on the income statement, the debt ratios expanded and equity valuations declined. Management – and really the Board – is undertaking a high skill maneuver of integrating its largest acquisition to date, carrying an unprecedented level of debt all concurrent with the long planned retirement of the long tenured CFO. It’s a little more exciting than necessary but the valuation is undemanding and the opportunity set is quite large.

Since I’ve long written about what this company could look like if it leaned more deeply into utilizing technology within its two-sided marketplace, I’ll be closely following the XPO Logistics (XPO) spinoff of the truck brokerage business, expected in 4Q22. Truck and waste brokerage share some similar dynamics and as I’ve long noted, the technologist at XPO worked at Oakleaf concurrently with QRHC CEO Ray Hatch. Technology was a big enabling factor at Oakleaf and in XPO’s +10x growth. I think it would have a similar function for QRHC were management to wisely invest time and resources in its development.”


9. Li-Cycle Holdings Corp. (NYSE:LICY)

Number of Hedge Fund Holders: 15

Li-Cycle Holdings Corp. (NYSE:LICY) is headquartered in Toronto, Ontario, and the company engages in the lithium-ion battery resource recovery and lithium-ion battery recycling business in North America. On October 13, the company announced that it has initiated commercial operations at its lithium-ion battery recycling facility in Alabama. The facility, which is based in Tuscaloosa, uses patented technology to recycle and directly process full EV battery packs without any dismantling through a submerged shredding process that produces no wastewater. Li-Cycle Holdings Corp. (NYSE:LICY) is one of the premier recycling stocks to invest in.

On December 15, ??Citi analyst P.J. Juvekar maintained a Buy recommendation on Li-Cycle Holdings Corp. (NYSE:LICY) but lowered the firm's price target on the shares to $7.50 from $8. The analyst observed that while there is an inclination to go back to cyclical chemical names after having lagged in 2022, he has decided to "stay defensive" going into 2023.

According to Insider Monkey’s data, 15 hedge funds were long Li-Cycle Holdings Corp. (NYSE:LICY) at the end of September 2022, and Zilvinas Mecelis’ Covalis Capital is the leading position holder in the company, with 11.6 million shares worth $61.8 million.


8. Heritage-Crystal Clean, Inc (NASDAQ:HCCI)

Number of Hedge Fund Holders: 19

Heritage-Crystal Clean, Inc (NASDAQ:HCCI) is an Illinois-based company that provides parts cleaning, hazardous and non-hazardous waste, and used oil collection services to small and mid-sized customers in the industrial and vehicle maintenance sectors in the United States and Canada. The company also provides containerized waste management, wastewater vacuum, antifreeze recycling, and field services. Heritage-Crystal Clean, Inc (NASDAQ:HCCI) is one of the leading recycling stocks to invest in.

On October 19, Heritage-Crystal Clean, Inc (NASDAQ:HCCI) reported Q3 non-GAAP earnings per share of $1.01 and a revenue of $172.22 million, outperforming Wall Street estimates by $0.21 and $17.23 million, respectively. The Q3 revenue increased nearly 40% compared to the prior-year quarter.

Needham analyst James Ricchiuti on October 21 maintained a Buy rating on Heritage-Crystal Clean, Inc (NASDAQ:HCCI) but trimmed the firm's price target on the shares to $40 from $43 as he noted that the company delivered "another impressive quarterly report." Oil business margins are forecasted to shrink in Q4 as a result of downtime in Heritage-Crystal Clean, Inc (NASDAQ:HCCI)’s refinery, which may have contributed to the pullback in shares, but it is "unwarranted," the analyst wrote in a research note.

According to Insider Monkey’s data, 19 hedge funds were long Heritage-Crystal Clean, Inc (NASDAQ:HCCI) at the end of September 2022, compared to 16 funds in the last quarter. Chuck Royce’s Royce & Associates is the largest stakeholder of the company, with 1.15 million shares worth $34 million.

Meridian Funds made the following comment about Heritage-Crystal Clean, Inc (NASDAQ:HCCI) in its Q3 2022 investor letter:

“Heritage-Crystal Clean, Inc (NASDAQ:HCCI) is an environmental services company focused on machine parts cleaning, used oil collection, oil re-refining, and hazardous and non-hazardous waste services. Our rationale for investing in this company includes the recurring revenue stream it generates from its environmental services business unit and substantial growth opportunities in the re-refinery and used oil collection segments. Continued strong execution and higher oil prices contributed to the stock’s solid performance during the period. Notably, Heritage-Crystal Clean’s oil business segment generated record revenue in the second quarter and saw segment margins improve to 41%, as the spread between base oil sales and the cost of collecting used oil widened. The company’s core environmental services segment also recorded record quarterly revenue. We believe the environmental, social, and governance (ESG) story at Heritage remains under appreciated by the market as the company collects used motor oil and recycles it for reuse. We have high conviction in the long-term growth story for the company, but trimmed our position in the stock during the period as the share price appreciated.”


7. PureCycle Technologies, Inc. (NASDAQ:PCT)

Number of Hedge Fund Holders: 23

PureCycle Technologies, Inc. (NASDAQ:PCT) was founded in 2015 and is headquartered in Orlando, Florida. The company produces recycled polypropylene (PP) and holds a license for restoring waste PP into ultra-pure recycled resin. Its recycling process separates color, odor, and other contaminants from plastic waste feedstock to turn it into virgin-like resin. PureCycle Technologies, Inc. (NASDAQ:PCT) is one of the best recycling stocks to consider. At the end of September 30, the company had total liquidity of $416.1 million, including $215.0 million of cash, cash equivalents, and debt securities available for sale and $201.1 million in restricted cash.

On November 11, Cowen analyst Thomas Boyes maintained an Outperform rating on PureCycle Technologies, Inc. (NASDAQ:PCT) but lowered the price target on the shares to $11 from $15. The analyst said as expected, pellet production at Ironton shifted into January and said the facility is still forecasted to fully ramp at the end of 2023.

According to Insider Monkey’s third quarter database, 23 hedge funds were bullish on PureCycle Technologies, Inc. (NASDAQ:PCT), with collective stakes worth $407.7 million, compared to 23 funds in the prior quarter worth $400.6 million. Daniel Patrick Gibson’s Sylebra Capital Management is the leading stakeholder of the company, with more than 29 million shares worth $235.5 million.


6. Casella Waste Systems, Inc. (NASDAQ:CWST)

Number of Hedge Fund Holders: 23

Casella Waste Systems, Inc. (NASDAQ:CWST) operates as a vertically integrated solid waste services company in the United States. The company offers resource management services including solid waste collection and disposal, transfer, recycling, and organics services to residential, commercial, municipal, institutional, and industrial customers. The company lifted its full-year 2022 revenue guidance to between $1.065 billion and $1.080 billion from a prior range of $1.035 billion to $1.050 billion. The consensus revenue came in at $1.04 billion.

On October 24, Jefferies analyst Stephanie Moore initiated coverage of Casella Waste Systems, Inc. (NASDAQ:CWST) with a Buy rating and a price target of $95, down from $103. The company offers superior pricing power given its Northeast concentration, as well as the ability to see accelerated margins from operating leverage and efficiency investments, the analyst told investors in a research note. She added that Casella Waste Systems, Inc. (NASDAQ:CWST) is also the only public waste company its size not to be acquired, which provides "downside support to valuation on a takeout potential".

According to Insider Monkey’s data, 23 hedge funds were long Casella Waste Systems, Inc. (NASDAQ:CWST) at the end of the third quarter of 2022, compared to 17 funds in the prior quarter. Jim Simons’ Renaissance Technologies is the largest position holder in the company, with 686,959 shares worth $52.5 million.

In addition to Waste Connections, Inc. (NYSE:WCN), Waste Management, Inc. (NYSE:WM), and Republic Services, Inc. (NYSE:RSG), Casella Waste Systems, Inc. (NASDAQ:CWST) is one of the leading recycling stocks to monitor.


5. GFL Environmental Inc. (NYSE:GFL)

Number of Hedge Fund Holders: 28

GFL Environmental Inc. (NYSE:GFL) is a diversified environmental services company operating in Canada and the United States. The company offers non-hazardous solid waste management, infrastructure and soil remediation, and liquid waste management services. Its solid waste management business includes the collection, transportation, transfer, recycling, and disposal of non-hazardous solid waste for municipal, residential, and commercial and industrial customers.

On November 2, GFL Environmental Inc. (NYSE:GFL) reported a Q3 non-GAAP EPS of $0.20 and a revenue of $1.83 billion, topping market estimates by $0.04 and $570 million, respectively. It is one of the premier recycling stocks to invest in.

CIBC analyst Kevin Chiang on December 14 raised the firm’s price target on GFL Environmental Inc. (NYSE:GFL) to C$50 from C$46 and maintained an Outperform rating on the shares.

According to Insider Monkey’s data, 28 hedge funds were long GFL Environmental Inc. (NYSE:GFL) at the end of Q3 2022, compared to 25 funds in the last quarter. Robert Pohly’s Samlyn Capital is the largest stakeholder of the company, with 4.5 million shares worth $114.3 million.

Here is what Ave Maria specifically said about GFL Environmental Inc. (NYSE:GFL) in its Q2 2022 investor letter:

“GFL Environmental Inc. (NYSE:GFL) is a growing solid waste management company. In the first quarter of 2022, revenue increased 11.3% on an organic basis and 27.4% including acquisitions. At the company’s investor day in May, the management provided increased free-cash-flow guidance for 2022, 2023 and 2024., which looks very positive.”


4. Clean Harbors, Inc. (NYSE:CLH)

Number of Hedge Fund Holders: 30

Clean Harbors, Inc. (NYSE:CLH) is a Massachusetts-based company that provides environmental and industrial services in North America. The company operates through two segments, Environmental Services and Safety-Kleen Sustainability Solutions. The Safety-Kleen Sustainability Solutions segment offers pickup and transportation services for hazardous and non-hazardous containerized waste for recycling or disposal. Clean Harbors, Inc. (NYSE:CLH) is one of the leading recycling stocks to invest in.

Baird analyst David Manthey on November 3 raised the price target on Clean Harbors, Inc. (NYSE:CLH) to $155 from $150 and maintained an Outperform rating on the shares. The analyst sees a good setup for ongoing solid pricing and deferred waste streams, perhaps cushioning results, while PFAS/reshoring/increased blended oil sales could also augment his view.

According to Insider Monkey’s data, 30 hedge funds were long Clean Harbors, Inc. (NYSE:CLH) at the end of September 2022, with combined stakes worth $497 million, compared to 28 funds in the prior quarter worth $408 million. Ian Simm’s Impax Asset Management is the largest position holder in the company, with 1.12 million shares valued at $123 million.

Meridian Funds made the following comment about Clean Harbors, Inc. (NYSE:CLH) in its Q3 2022 investor letter:

“Clean Harbors, Inc. (NYSE:CLH) is a leading hazardous waste treatment, storage, and disposal management company in North America and one of our longer-term holdings. Particularly impressive are its hazardous waste incinerators, which are nearly impossible to replicate. We also like its oil re-refinery business which is gaining recognition as a sustainable source of motor oil. Through cost controls and price increases, the company was successful in managing the inflationary environment during the period. Utilization of its incinerator network reached 90% during its most recently reported quarter and pricing increased 18% from a year ago. High and increasing base oil prices provided an additional boost to its re-refinery business, widening the spread between the price Clean Harbors charges for its refined oil and the price it pays for used oil. A resurgence in U.S. manufacturing activity and the accretive acquisition of HydroChemPSC also contributed to investors’ enthusiasm for the stock. Although our long-term outlook for Clean Harbors remains upbeat, we trimmed our position in the stock due to the company’s high debt balance as a result of the acquisition. We also believe the economic slowdown may eventually impact Clean Harbors, which operates in a late-cycle industry and therefore tends to have a delayed response to economic developments.”


3. LKQ Corporation (NASDAQ:LKQ)

Number of Hedge Fund Holders: 32

LKQ Corporation (NASDAQ:LKQ) was incorporated in 1998 and is headquartered in Chicago, Illinois. The company deals in auto replacement parts, components, and systems used in the repair and maintenance of vehicles. LKQ Corporation (NASDAQ:LKQ) provides scrap metal and other materials to metals and automotive recyclers. The company raised its latest quarterly dividend by 10% to $0.275 per share, which was paid to shareholders on December 1. The board also authorized a $1 billion increase and one-year extension to its stock repurchase program, lifting the aggregate repurchase authorization to $3.5 billion through October 25, 2025.

On July 12, MKM Partners analyst Scott Stember initiated coverage of LKQ Corporation (NASDAQ:LKQ) with a Buy rating and a $68 price target. Prospects for LKQ Corporation (NASDAQ:LKQ)’s North American business “have never been better” and the effective scaling of the European business has yielded gains in segment sales and profits, said the analyst, who added that “LKQ has turned into a cash flow-generating machine.”

According to Insider Monkey’s data, 32 hedge funds were long LKQ Corporation (NASDAQ:LKQ) at the end of September 2022, compared to 31 funds in the earlier quarter. ValueAct Capital is the leading stakeholder of the company, with 12.5 million shares worth $592 million.

Bonsai Partners mentioned LKQ Corporation (NASDAQ: LKQ) in its first-quarter 2021 investor letter. Here’s what they said:

“LKQ is the largest provider of alternative collision and mechanical automotive parts in the United States. In Europe, they are the leading distributor of general automotive maintenance parts and supplies. Its shares appreciated 20.1% during the quarter.

During the quarter, LKQ shared its fourth-quarter results: showing a slight revenue decline and a nearly 30% increase in quarterly profit Vs. the same period last year. COVID has proved a surprising catalyst for my investment thesis which revolves around optimizing their recent large acquisitions that were never efficiently integrated.

Admittedly, in addition to LKQ’s quarterly performance, thematically, there has been broad enthusiasm for “re-opening” trades, of which, LKQ has been a beneficiary. Most importantly, the prior overhang related to LKQ’s debt burden is now all but behind us. Their net debt to EBITDA ratio now sits below 2x, a stark change from the near 3x leverage ratio before the pandemic. At that time, LKQ’s leverage had the potential to spiral upward to nearly 4-5x if the business experienced a prolonged shutdown. It’s good to be past this issue.”


2. Waste Connections, Inc. (NYSE:WCN)

Number of Hedge Fund Holders: 33

Waste Connections, Inc. (NYSE:WCN) is a provider of non-hazardous waste collection, transfer, disposal, and resource recovery services in the United States and Canada. The company offers collection, landfill disposal, and recycling services to residential, commercial, municipal, industrial, and exploration and production customers. It is one of the top recycling stocks to monitor. Waste Connections, Inc. (NYSE:WCN) raised its latest quarterly dividend by nearly 11% to $0.255 per share, which was distributed to shareholders on December 1.

On October 24, Jefferies analyst Stephanie Moore initiated coverage of Waste Connections, Inc. (NYSE:WCN) with a Buy rating and a $165 price target. The analyst said the stock is best-in-class amongst its waste peers with above-average pricing growth and margins due to its suburban market exposure, as well as the exclusivity from its franchise contracts. The analyst added that she views it has a clear line of sight into at least low double digit revenue growth in 2023.

According to Insider Monkey’s Q3 data, 33 hedge funds were long Waste Connections, Inc. (NYSE:WCN), compared to 34 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the biggest stakeholder of the company, with 2.15 million shares worth $290.4 million.

Conestoga Capital Advisors made the following comment about Waste Connections, Inc. (NYSE:WCN) in its Q3 2022 investor letter:

“Waste Connections, Inc. (NYSE:WCN): WCN is a leading waste management service company that provides collection, recycling, transfer and disposal services in North America. This top ten holding performed well during the quarter given the consistency of its business model with stable volumes, strong pricing power and healthy margins.”


1. Republic Services, Inc. (NYSE:RSG)

Number of Hedge Fund Holders: 41

Republic Services, Inc. (NYSE:RSG) is an Arizona-based company that offers environmental services in the United States. The company provides collection and processing of recyclable materials, collection, transfer and disposal of non-hazardous solid waste, and other environmental solutions. It is one of the best recycling stocks to invest in. On October 27, Republic Services, Inc. (NYSE:RSG) reported a Q3 non-GAAP EPS of $1.34 and a revenue of $3.59 billion, outperforming Wall Street estimates by $0.12 and $60 million, respectively.

BMO Capital analyst Devin Dodge on December 7 downgraded Republic Services, Inc. (NYSE:RSG) to Market Perform from Outperform with a price target of $148, down from $152. Republic Services, Inc. (NYSE:RSG) has meaningfully outperformed the market this year, indicating robust industry conditions, strong execution, and an investor preference for defensive stocks, the analyst told investors in a research note. While solid waste stocks normally outperform deep into a recession, the much anticipated economic pullback has meaningfully been reflected in the relative share price performance, noted the analyst. As such, he sees lower potential returns over the next 12 months. Despite the downgrade, he still believes Republic Services, Inc. (NYSE:RSG) could be attractive for individuals with a longer investment horizon.

According to Insider Monkey’s data, 41 hedge funds were long Republic Services, Inc. (NYSE:RSG) at the end of Q3 2022, compared to 33 funds in the last quarter. Richard Chilton’s Chilton Investment Company is a notable position holder in the company, with 1.38 million shares worth $188.5 million.

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>>> BlackRock, State Street CEOs Highlight ESG Backlash at Davos


Yahoo Finance

by Daria Solovieva

January 20, 2023


https://finance.yahoo.com/news/blackrock-state-street-ceos-highlight-183000257.html


Environmental, social and governance investing issues made headlines at the World Economic Forum in Davos, as big bank CEOs and asset managers lamented the state of sustainability efforts facing increased scrutiny from investors and regulators globally.

Larry Fink, chief executive and chairman of BlackRock Inc., kicked off ESG discussions on the opening day of the forum by recognizing the firm took a $4 billion loss as a result of the backlash against ESG investing. BlackRock’s iShares is the world’s biggest ETF issuer.

“The attacks are now personal,” Fink told the Davos, Switzerland crowd. “They are trying to demonize issues.”

Yie-Hsin Hung, president and CEO of State Street Global Advisors, also noted politicization of ESG issues in the U.S., calling the anti-ESG backlash “challenging” in an interview with Financial News.

Regardless of the backlash, demand for global adoption of ESG standards is growing, along with increasing numbers of high-profile advocates.

Brian Moynihan, CEO Of Bank of America Corp., said at the forum on Wednesday that official global standards on sustainability and climate were needed to “align capitalism with what society wants from it,” according to a CNBC report.

Alignment on definition and metrics, and support from high-profile advocates, which has long dominated ESG industry events and discussions, will be critical to the long-term success of these ideas.

Net Benefit for the Industry?

Longtime ESG industry players and evangelists see 2022 as a blip and remain bullish on long-term ESG performance and outlook, despite mounting criticism and politicization of the terms.

“Let politicians punch it out between themselves; we're focused on finance,” said Elysabeth Alsano, CEO of VegTech Invest and advisor on the VegTech Plant-based Innovation & Climate ETF (EATV). The ETF was certified as carbon neutral by Ethos ESG this week, saying that its companies can now avoid carbon emissions “by replacing animal products for a less carbon intensive food and materials supply system.”

Alsano thinks the criticism of ESG will ultimately help the efforts.

“Very few ETFs are run by sector experts, and I think this onslaught against ESG is only going to make the authentic voices rise to the top,” she noted.

Alsano said the ESG industry is a “big basket” that includes a variety of sectors, trends and variables. One way for ESG investors to navigate uncertainty is to stay focused on specific themes.

“Pick your megatrends that you believe in that you think are going to be better for the planet,” she said. “We believe in the megatrend of a global shifting food supply system—I don't have to believe because I already see it happening.”

EATV is up 5.6% year to date and was down 24.45% last year, according to ETF.com data.

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>>> ESG Funds Could Face 'Tons of Closures'


ETF.com

Shubham Saharan

March 29, 2023


https://finance.yahoo.com/news/esg-funds-could-face-tons-154500155.html


Environmental, social and governance funds may be facing a watershed moment as billions of dollars in assets have cleared out of the segment this year alone.

Once-bullish assets managers are increasingly shying away from the politically charged investment strategy and are stripping the terminology from exchange-traded funds. Some analysts are even predicting a major course correction.

“The demand for ESG ETFs was so grossly overestimated,” said Eric Balchunas, senior ETF analyst at Bloomberg Intelligence. “There’s going to be tons of closures coming up.”

Political backlash and trailing returns have investors running for the hills. Domestic ESG-labeled ETFs have collectively lost $5.8 billion year to date, Bloomberg data shows, on top of the $2.1 billion lost in the fourth quarter of 2022.

For comparison, billions of dollars poured into the industry just two years ago, with ESG funds hauling in nearly $32 billion in 2021, Strategas data shows. ESG fund launches also ballooned, as 209 ESG-listed ETFs with $90 billion in assets hit U.S.-listed markets in the last two decades, according to etf.com data.

Among the biggest losers has been the largest ESG index fund, the iShares ESG Aware MSCI USA ETF (ESGU), which has shed nearly $6.3 billion year to date, and recently posted its largest one-day loss of $4 billion, etf.com data shows. BlackRock declined to comment about the movement.

The fund reflects a broader, bubbling anti-ESG sentiment.

“ESG has gathered a lot of baggage, is the word I use,” Balchunas said. “It's political baggage, return baggage. It's just become a political football of a term.”

Political Backlash

The criticism of ESG-focus investment strategy and methodology did not emerge this year, but it has been simmering in recent months.

Several ETF providers have even gone so far as to drop the ESG label. In February, VictoryShares ETFs, which manage almost $8 billion across 25 U.S.-listed products, removed “ESG” from two of their bond ETFs.

In August, Idaho-based Inspire ETFs also shed “ESG” from eight of their fund titles.

“Due to the escalation of leftist intolerance and rancor in recent months, we no longer desire to identify our investment approach as being part of the ESG category,” said Inspire Investing CEO Robert Netzly in a company statement announcing the changes.

It’s not only issuers citing concerns about ESG, Republican-led states have pulled out more than $1 billion from BlackRock, parent of the world’s largest ETF issuer and ESGU’s issuer, iShares.

On the other side of the aisle, Democrats have criticized the firm for not being ESG enough. In September, New York City Comptroller Brad Lander slammed the firm for the “fundamental contradiction between BlackRock’s statements and actions.”

Evolving ESG Tactics

Asset managers are also adjusting their stances on ESG seemingly in reaction to the changing public sentiment. BlackRock CEO Larry Fink has tempered his usual optimistic tone on ESG investing, reframing the issue as investment opportunities as opposed to socially conscious investments in his latest letter to investors.

Vanguard, the second largest ETF issuer, pulled out of the net zero climate effort in December, an investment industry initiative to tackle climate change.

In another telling example, Hypatia Capital launched in January the Hypatia Women CEO ETF (WCEO), bringing a fund to market that specifically focuses on the performance of U.S. public companies with female CEOs. While gender diversity on boards and in executive ranks is a high-profile governance issue, neither of the funds were tagged with an ESG label.

“Now, we believe that ESG in general is an overlay concept,” said Patricia Lizarraga, managing partner of Hypatia Capital, during an Exchange Traded Fridays podcast in March. “We are not picking our stocks for E, for S or for G. We are saying that women CEOs outperform.” (lol)

To be sure, ESG remains a focus for firms as they launch funds. More than a quarter of respondents said they would be most keen to launch a fund with “broad consideration of ESG issues” as compared to any other theme, according to a recent HSBC ESG Sentiment Survey. More than a third of the 422 individuals surveyed also indicated that ESG would be mainstream in a decade.

In the first half of 2022, the number of ESG-labeled mutual funds and ETFs jumped 23%, according to a December report by Cerulli Associates.

“Recent political pressure has not deterred most firms,” said Michele Giuditta, Cerulli’s director of institutional practice, in an interview with etf.com in December. “Managers are committed to ESG, and I don’t think this is going to change their plans.”

Underperformance Weighs on Investors

The underperformance of ESG has also added to the segment’s woes. The funds, which can charge a heftier expense ratio but carry many of the same investments as benchmark index counterparts, is contributing to the problem, said Mark Neuman, CIO of Constrained Capital.

“What happens is, once returns go sour, people start to take notice,” he said in an interview with etf.com. “Guaranteeing promises that everyone wins and nobody loses and everyone does better— that sounds like fantasyland, not like reality.”

Funds like ESGU and the second largest ESG index fund, the Vanguard ESG US Stock ETF (ESGV), have slightly underperformed the benchmark SPDR S&P 500 ETF Trust (SPY) in the trailing 30 days. The funds have dipped 0.8% and 0.7%, respectively, trailing SPY, which has slumped just 0.2% during the same period.

While the difference between the two may seem minimal, those lagging returns are weighing on investors hunting for returns amid whipsawing markets and bank runs, Neuman said.

And while some investors may choose to keep or add ESG products to their holdings in the future, they may not be the core of most portfolios moving forward, said Bloomberg’s Balchunas.

“There'll be a niche,” he said. “ESG ETFs will exist, but they’ll be fringe.”

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>>> Investing in ESG ETFs


Motley Fool

By Alison Plaut

Jan 17, 2023


https://www.fool.com/investing/stock-market/types-of-stocks/esg-investing/esg-etfs/


Interest in environmentally sustainable investments, social issues, and governance is on the rise. Doing good can also be a wise long-term investment strategy. Last year, ESG mutual funds and ETFs rose by 53% to $2.7 trillion. ESG (environmental, social, governance) has become a buzzword in investment circles for good reason. ESG ETF investing has become about more than caring for people and the planet; it’s also become good business.

The Standard & Poor’s 500 ESG Index has outperformed the broader S&P 500 for the past 10 years. For more than 20 years, companies with high ESG values have shown consistent resilience and growth. During the 2018 and 2020 market contractions, companies with strong ESG track records showed greater ability to bounce back.

Understanding ESG ETFs

Exchange-traded funds, or ETFs, are collections of stocks and bonds. Investors can purchase shares of an ETF, which invest according to specific objectives. ETFs are similar to mutual funds in that they’re a group of stocks and bonds. Investors can buy shares of either mutual funds or ETFs, but ETFs differ from mutual funds in two key ways.

First, ETFs can be bought or sold throughout the trading day. They trade like stocks on major exchanges. Mutual funds can only be bought or sold once per day.

The second key difference is pricing. ETF prices fluctuate throughout the day as they are bought and sold. Mutual funds are priced once daily on their net asset value.

ETFs can be either passive or active. Passive or indexed ETFs track a stock index such as the S&P 500. Active ETFs are actively managed with the goal of outperforming average index performance.

ETFs generally charge fees. This fee is listed as an annual percentage and is called an expense ratio. A lower expense ratio means more money to invest. Most ETFs pay dividends. Investors can have the dividends paid as cash, or they can be automatically reinvested.

ESG

ESG is a broad term for companies choosing to demonstrate a commitment to protecting the environment, social responsibility, and/or transparent governance. Companies may choose to focus on one of these areas or all three. Another term for ESG is sustainable investing or green investing.

Here is what each area of ESG covers:

Environmental: Companies demonstrate concern for the environment when they choose to reduce their total carbon footprint, use sustainable energy, work in LEED-certified buildings, reduce waste, develop clean tech, and/or give back to environmental causes.

Social: Social responsibility occurs when a company commits to paying living wages, accepting product liability, protecting data, and providing a healthy and safe work environment.

Governance: Governance encompasses transparent company ownership and control, diversity, board independence, financial transparency, and ethics.
ESG ratings

ESG ratings can provide insight into a company’s long-term performance. ESG risks, such as unsafe working conditions, lack of board independence, energy dependence, or questionable accounting practices can have serious financial consequences.

Companies that have demonstrated a commitment to the environment have consistently performed better than competitors. Choosing a company with a high ESG rating can make good long-term financial sense.

ESG ratings measure a company’s long-term environment, social, and governance risks. The higher the ESG rating, the lower the total risk. One of the most widely used ESG rating systems is the MSCI USA. The system measures risk across industry-specific issues, which are weighted by potential impact. The industry-specific scores and weighted scores are combined to give each company a score between 0 and 10 and are then converted into letter grades from CCC to AAA.

Companies with ESG scores of AA to AAA are considered ESG leaders with lowest ESG risk. Average ESG scores range from BB to A. A company with a high ESG score demonstrates strong commitment to ESG. This can also translate to lower risk for investors. Investors can use the ESG score for supplemental financial analysis. For investors committed to environment, social, and governance values, a high ESG score can also be a filter for selecting investments.

Keep in mind that an average ESG rating may not indicate a commitment to social responsibility or environmental issues. Companies can score at average levels with good corporate governance, strong data privacy, and transparent accounting.

For example, many are making the argument that Amazon (NASDAQ:AMZN) is not a true ESG stock. Amazon rates highly in corporate governance and data security but has an average carbon footprint and scores poorly on labor management. It is rated as BBB under the MSCI ESG ratings and is found in many ETF ESG portfolios without demonstrating a commitment to the environmental or social aspects of ESG.

6 Top ESG ETFs in 2023

iShares ESG Aware MSCI USA ETF (NASDAQ:ESGU) $19.6 billion Created in 2016, iShare ESG Aware tracks the S&P 500 index. It has reported a -16.24% one-year return, a 8.17% three-year return, and a 11.65% five-year return.

Vanguard ESG U.S. Stock ETF(NYSEMKT:ESGV) $5.7 billion An indexed ETF with exclusionary principles. It has yielded an 19.25% one-year return, 7.40% three-year return.

iShares Global Clean Energy ETF (NASDAQ:ICLN) $5.1 billion An ETF focused on global clean energy production. It posted a 6.71% one-year return, a 21.45% three-year return, and a 18.66% five-year return.

iShares ESG Aware MSCI EAFE ETF (NASDAQ:ESGD) $6.7 billion An exclusionary ESG ETF. It recorded a -10.79% one-year return, a 2.64% three-year return, and a 6.15% five-year return.

Vanguard ESG International Stock ETF (NYSEMKT:VSGX) $3.0 billion An ETF of international stocks. It reported a -14.55% one-year return, a 1.14% three-year return.

Nuveen ESG Mid-Cap Growth ETF (NYSEMKT:NUMG) $341.8 million An ESG ETF focused on small and mid-sized U.S. companies. It posted a -16.2% one-year return, and a 10.68% five-year return.


1. iShares ESG Aware MSCI USA ETF

iShare ESG Aware tracks the S&P 500 index. It holds an MSCI ESG quality score of 8.91 and a AAA rating. The ETF has 320 holdings, and its largest positions are with Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon, and Tesla (NASDAQ:TSLA).

Fund areas of exclusion are:

Nuclear weapons
Controversial weapons
Tobacco
Civilian firearms
Oil sands
Thermal coal
UN Global Compact violators

Its performance closely mirrors the S&P 500 and is a good foundation investment for investors interested in exclusionary filters for ESG. As long as it performs as projected, it should closely match the S&P 500.


2. Vanguard ESG U.S. Stock ETF

The Vanguard ESG ETF holds about 1,500 U.S. stocks. It is an indexed or passive ETF that uses exclusionary principles. Companies excluded include those that derive revenue from production, supplying, or retailing:

Controversial weapons
Civilian firearms
Nuclear power
Fossil fuels
Tobacco
Cannabis
Conventional military weapons
Alcohol
Gambling
Adult entertainment

Companies are also screened for workplace and board diversity. Any violations of labor rights, human rights, anti-corruption, or environmental standards also can disqualify companies. Its largest holdings include Apple, Microsoft, Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG), Amazon, and Tesla. The ETF can be a good choice for investors interested in social impact and investing in U.S. companies.


3. iShares Global Clean Energy ETF

iShare Global Clean Energy ETF tracks the S&P Global Clean Energy Index. It has an MSCI score of 8.7 and a rating of AAA. It specifically focuses on clean energy production, equipment, and technologies and has holdings in 83 companies. There are significant positions in wind and solar energy.

The ETF’s largest holdings include Vestas Wind Systems (OTC:VWDRY), Enphase Energy (NASDAQ:ENPH), Consolidated Edison (NYSE:ED), and Orsted (OTC:DOGE.F). For investors who want to put their funds in sustainable energy and hold for the long term, this can be a good choice. Although its recent performance has been good, the ETF also poses greater risks than the other choices listed here.


4. iShares ESG Aware MSCI EAFE ETF

iShares ESG Aware has 452 holdings, with a total MSCI score of 9.8 and a AAA rating. The fund is more evenly distributed across business sectors. Its fund distribution includes 17.82% in financials, 15.20% in industrials, and 12.92% in healthcare. The largest holdings are in Nestle (OTC:NSRGY), ASML Holding (NASDAQ:ASML), Roche Holding (OTC:RHHBY), and AstraZeneca (NASDAQ:AZN).

Fund exclusion areas are:

Nuclear weapons
Controversial weapons
Tobacco
Civilian firearms
Oil sands
Thermal coal
UN Global Compact violators

This fund has underperformed the S&P 500, but it may still be a good long-term buy-and-hold investment.

5. Vanguard ESG International Stock ETF

The ETF holds between 3,000 to 4,000 stocks. Its regional allocation includes 37% in European companies, 26.05% in emerging markets, and 26.80% in the Pacific. The indexed passive fund uses ESG exclusionary principles.

Vanguard ESG International screens companies that derive revenue from the production, supplying, or retailing of:

Controversial weapons
Civilian firearms
Nuclear power
Fossil fuels
Tobacco
Cannabis
Conventional military weapons
Alcohol
Gambling
Adult entertainment

Companies are filtered for workplace and board diversity. To be included, companies must also meet the U.N. Global Compact principles. The largest holdings are in Taiwan Semiconductor Manufacturing (NYSE:TSM), Nestle, and Samsung Electronics (FRA:SSUN). Toyota (NYSE:TM), Alibaba Group (NYSE:BABA), and AstraZeneca also make the top 10 largest holdings.


6. Nuveen ESG Mid-Cap Growth ETF

This small ETF focuses on mid-cap growth U.S. companies. It is an interesting opportunity for investors looking to support growing U.S. ESG companies. The fund is up 15.6% in the past five years, although it dropped 20.33% during the first few months of 2022. With 59 total positions, the portfolio is heavily invested in information technology (34.08%) and healthcare (20.69%).

Top portfolio positions include Cadence Design Systems (NASDAQ:CDNS), Cheniere Energy (NYSEMKT:LNG), Ulta Beauty (NASDAQ:ULTA), and Tractor Supply Company (NASDAQ:TSCO).

The bottom line

ESG is one additional tool investors can use to guide investment decisions. The historical growth performance and resilience during market contractions indicate long-term viability for ESG-focused companies and the S&P 500 ESG index. While investors can select individual ESG stocks, ETFs are a simple way to start investing in ESG companies.

For investors just venturing into ESG, indexed exclusion funds that track the S&P 500 and perform as expected should bring returns that closely match the S&P 500. With growing concern over climate issues, social justice, and governance, investors looking long term can expect this sector to continue to grow. For investors concerned about the climate, social equity, and good governance, ESG ETFs are a simple way to invest in alignment with their values.

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>>> SEC charges Goldman Sachs Asset Management with not following ESG investments policies


Yahoo Finance

November 22, 2022

By Kanishka Singh


https://finance.yahoo.com/news/sec-charges-goldman-sachs-asset-212814140.html


WASHINGTON (Reuters) -The U.S. Securities and Exchange Commission on Tuesday charged Goldman Sachs Asset Management with failing to follow its policies and procedures involving environmental, socially oriented and other investments, and fined the company $4 million.

The charges were specifically over "policies and procedures failures involving two mutual funds and one separately managed account strategy marketed as Environmental, Social, and Governance (ESG) investments," the regulatory agency said in a statement.

Without admitting or denying the regulator's findings, Goldman Sachs Asset Management agreed to pay the $4 million penalty, the SEC added.

Global investors have poured money into ESG-focused funds in recent years as they have paid more attention to issues such as climate change or workforce diversity, although the funds have faced net withdrawals of investor cash so far this year.

U.S. and European regulators are just starting to formalize rules for ESG claims and disclosures.

"Goldman Sachs Asset Management, L.P. is pleased to have resolved this matter, which addressed historical policies and procedures related to three of the Goldman Sachs Asset Management Fundamental Equity group's investment portfolios," the company said in a separate statement.

The SEC found that, from April 2017 until February 2020, the company had several policy and procedure failures involving the ESG research its investment teams used to select and monitor securities.

"From April 2017 until June 2018, the company failed to have any written policies and procedures for ESG research in one product, and once policies and procedures were established, it failed to follow them consistently prior to February 2020," the SEC said.

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>>> Mid-Cap ESG Investing


Investopedia

By CASEY MURPHY

April 15, 2022


https://www.investopedia.com/mid-cap-esg-investing-5225784?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral


When it comes to investing, it is natural for investors to seek exposure to themes that support their personal outlook as well as their associated investment goals. Investors commonly align their portfolios with a certain strategy or sector that they think is positioned to do well over the long term. For many, this means that they rarely know or understand the details of the holdings that make up their portfolios. In some cases, investors may want to gain or limit exposure to certain international markets, niche market segments, or even different types of securities, but they never really understand the details of how their portfolio is constructed.

Unfortunately, until recently, many investors never really stopped to consider the type of impact that the holdings of their portfolios have on the environment, society, communities, or the overall well-being of stakeholders. Commonly, profit and gain are primary investment goals, and little thought is given to anything else.

However, given the rise of environmental, social, and governance (ESG) investing and the underlying concerns many investors have about related dimensions, strategies and the types of investment candidates that make it into portfolios are changing. In this article, we take a closer look at how mid-cap investors are taking ESG factors into consideration when identifying candidates for their portfolios.

KEY TAKEAWAYS

ESG investing is becoming a dominant theme for mid-cap investors to consider as part of their overall investment strategies.

ESG scores and related metrics are becoming popular data points that can be found on ETF and company profile pages across financial media. These metrics will help mid-cap investors compare investment candidates through an ESG lens.

The top holdings of a wide variety of ETFs targeted at themes such as clean energy offer investors an interesting array of investment candidates.

ETFs such as the iShares ESG Screened S&P Mid-Cap
ETF offer investors a new way of gaining exposure to a basket of ESG-filtered companies.

Environmental and Sustainable Investing

One of the factors that is a top priority for ESG investors is the overall impact that investments have on the environment. The overarching goal of many ESG-based strategies is to reduce the global carbon footprint in an effort to address the climate crisis.

According to Larry Fink, founder, chairman, and chief executive officer of BlackRock, Inc. (BLK), in his 2022 letter to CEOs, "The next 1,000 unicorns won't be search engines or social media companies, they'll be sustainable, scalable innovators—startups that help the world decarbonize and make the energy transition affordable for all consumers." Fink goes on to say that it will not be only the small companies to pave the way forward, but that many incumbents have an advantage in capital, market knowledge, and technical expertise.

In the spirit of this sentiment, the BlackRock CEO would likely agree that mid-cap companies, or those that currently have a market capitalization of between $2 billion and $10 billion, are also uniquely positioned to make a significant difference in the transition toward net-zero carbon emissions.

Larry Fink is the CEO of BlackRock, which he and seven partners founded in 1988. Fink has been recognized for his leadership by Fortune and other publications. Barron's has named him one of the World's Best CEOs for 15 consecutive years.

From a macro perspective, companies that prioritize the production and distribution of clean energy stand to benefit from government and corporate initiatives, as well as increased consumer demand for the foreseeable future. Each party mentioned above is calling for energy to come from sustainable sources such as wind, solar, and hydro.

Investors who are interested in gaining exposure to clean-tech companies can utilize standard stock screeners and then conduct their own research to narrow down the list of possible candidates. Or more simply, they can look to the top holdings of popular exchange-traded funds (ETFs), such as:


VanEck Environmental Services ETF (EVX)

iShares Global Clean Energy ETF (ICLN)

Global X Lithium & Battery Tech ETF (LIT)

Invesco Solar ETF (TAN)

Invesco WilderHill Clean Energy ETF (PBW)

ALPS Clean Energy ETF (ACES)

Invesco Global Clean Energy ETF (PBD)

VanEck Low Carbon Energy ETF (SMOG)

First Trust Global Wind Energy ETF (FAN)

SPDR Kensho Clean Power ETF (CNRG)


Some "clean" ETFs contain securities from oil and auto companies because these companies devote some of their research to alternative energy. Investors should do their research to determine whether an ETF aligns with their values and investment goals.

ESG Scoring

Those who are new to ESG investing will be interested to know that several firms have established standardized scoring methodologies. ESG scores can serve as a basis for comparing companies and funds across many different metrics, such as a fund's exposure to carbon-intensive companies. In many cases, metrics are all taken together to come up with one total ESG score that can be found for a significant portion of publicly traded funds and securities.

For example, the MSCI ESG rating is designed to measure a company's resilience to long-term industry material environmental, social, and governance risks. The rules-based methodology identifies leaders and laggards based on a scale from AAA through to CCC.

MSCI also has an overall ESG Quality Score between 0 and 10 for ease of comparison.

Aside from MSCI ESG Ratings, other common ESG scoring metrics come from S&P Global ESG Scores, or Refinitiv Lipper, all of which are becoming quite common on the detail pages of many publicly traded ETFs.

iShares ESG Screened S&P Mid-Cap ETF

So far, this article has focused on the environmental and sustainable factors of ESG investing because they are currently the highest priority for most investors. However, dimensions such as exposure to controversial business areas and other governance-related issues are also very important. Though filtering based on specific types of business exposure and governance-related issues is more complicated than filtering based on exposure to broad industries such as wind or solar, it is not impossible for those who are interested.

Conversely, those who do not have the time, experience, or interest to conduct ESG-based screens may be interested in ETFs such as the iShares ESG Screened S&P Mid-Cap ETF (XJH), which utilizes screening techniques to reduce exposure to company involvement in controversies and controversial business activities. In the case of XJH, the fund's managers seek to remove exposure to controversial weapons, small arms, tobacco, oil sands and shale energy, thermal coal, and fossil fuel reserves. The fund has an MSCI ESG Fund Rating of A and an overall ESG Quality Score of 6.4 out of 10.

The Bottom Line

The future of ESG investing is bright, especially when it comes to mid-cap companies that are aligning with government and consumer demand for energy from sustainable sources. Investors are more concerned than ever when it comes to ESG-related topics such as low carbon emissions strategies, reducing exposure to controversial business areas, product quality, worker safety, labor standards, voting rights, executive pay versus employee pay, and long-term sustainability.

ESG scoring metrics are starting to appear on many ETF profile pages as well as on company quote pages in financial media. As ESG continues to grow in prominence, it is natural that the role of scoring methodologies will continue to play an important role in investment strategies, and that we will start to see more ETFs like the iShares ESG Screened S&P Mid-Cap ETF.

What Is ESG Investing?

ESG stands for environmental, social, and governance. Socially conscious investors use a variety of dimensions across these three areas to filter potential investment candidates.

Is Buying a "Clean" ETF Considered ESG Investing?
Certain holdings of "clean" ETFs may not align with the goals and values of an ESG investor. For example, sometimes a holding such as a large-cap oil-and-gas company will be added to a "clean" ETF due to its investments or intentions in the alternative energy space. It is always a good idea to conduct your own research to ensure that investments align with your values and investment goals.

What Is an ESG Rating?

ESG ratings are the comprehensive measures of a company or investment fund's long-term commitment to socially responsible investments and dimensions across environmental, social, and corporate governance. ESG scoring metrics are now available from a variety of companies. One of the most popular is the MSCI ESG ratings.

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Waste + Recycling - >>> 11 Biggest Garbage Companies in the US


Insider Monkey

by Faiq Zafar

November 16, 2022


https://finance.yahoo.com/news/11-biggest-garbage-companies-us-152514519.html


In this article, we shall discuss the 11 biggest garbage companies in the United States. To skip our comprehensive analysis of the waste management sector in the United States, go directly and see 5 Biggest Garbage Companies in the US.

According to a report by McKinsey and Company, growth in the global economy has led to a drastic increase in consumption which, in turn, has led to an increase the use of resources. This has resulted in a rapid surge of waste production. Global demand for plastics is also on the rise, promulgated by the material's barrier properties, light weight, malleability and profitable production economics. Plastic consumption is expected to play a significant role in global supply chains, despite efforts to move away from single-use plastics. This rising demand of plastic has also spurred a drastic rise in plastic waste production. According to the report, since 2007, the considerable rise in solid waste production has strained waste-management systems in many countries, which has led to negative impact on the global economy, health, and ecosystems.

Waste Collection Services Industry in the U.S: An Analysis
The average American produces approximately 4.5 pounds of trash a day, leading the U.S. to produce 268 million tonnes of waste annually. Though the country is home to merely 4% of the global population, it is responsible for more than 12% of the planet's waste. According to a study conducted by Greenpeace USA, industry claims of creating an efficient, circular economy is nothing more than "fiction", as of the 51 million tons of plastic waste generated by households in the United States in 2021, only 2.4 million tonnes, less than 5%, were recycled. After peaking in 2014 at 10%, the trend of recycling in the United States has been on the decline, especially since China stopped accepting the West's plastic waste in 2018. Since the waste management industry revenue is highly dependent on waste production in any given economy, the market trends for the industry in the U.S. have picked up considerably since the pandemic in 2020, and a favorable future outlook for the industry is anticipated.

The waste collection services industry has recorded massive growth over the past five years. The market is highly segmented into industrial waste, hazardous waste, and municipal waste. Given that residential waste has remained relatively dormant during the period, accounting for 31.8% of the total market share, overall industry demand is stabilized. The market size, measured by revenue, has totaled up to $68 billion in 2022, and is expected to reach $229.3 billion by 2028, projected to grow at a CAGR of 6.7% from 2022 to 2030. Stringent government regulations towards open burning and illegal dumping, introduction of governmental regulations to curb greenhouse gas emissions like the Inflation Reduction Act, and legislative amendments by the Environmental Protection Agency to contain illegal dumping and burning of waste, are all driving augmented market growth. However, inadequate waste disposal methods, and labor intensive and high cost of transportation are anticipated to restraint the North American waste management market. Some of the most prominent players in the waste collection industry are Waste Management Inc. (NYSE:WM), Waste Connections Inc. (NYSE:WCN), and Republic Services Inc. (NYSE:RSG).

In this article, we shall discuss the 11 biggest garbage companies in the United States by total market capitalization.

Biggest Garbage Companies in the US


11. Rubicon Technologies LLC (NYSE:RBT)
Total Market Cap (As of November 7): $346.8M

Headquartered in Lexington, Kentucky, Rubicon Technologies (NYSE:RBT) is an American software company which specializes in the development and procurement of software to regulate waste and recycling. Rubicon Technologies (NYSE:RBT) has pioneered a mobile application to provide on-demand trash pickup. Founded in 2008, the company was able to generate an initial funding of $5 million in its first financing round. The amount went up to $30 million in 2015 in their second round, and $57 million in their third. As of the third quarter of 2022, Rubicon Technologies (NYSE:RBT) generated a total revenue of $185 million. The company has only 481 employees across three office locations in Colorado, Menlo Park, and Stamford.

Rubicon Technologies' (NYSE:RBT) primary objectives is to reduce inefficiencies and maximize the amount of waste which is diverted away from landfill sites. The company's application is fully operational in more than 20 countries including the United States, Canada, and Puerto Rico, with more than 3.4 million user service locations as of 2022. Rubicon Technologies (NYSE:RBT) is a cloud-based company and its software platform analyzes customers' waste stream and regulates all the data on haulers, clients, and recycling possibilities. The company expounds a range of SaaS products for waste, recycling, and smart city solutions, with the subscription model contributing to more than 50% of Rubicon's (NYSE:RBT) annual revenue. Prominent clients for the company include 7-Eleven, Wegmans, and Starbucks.

10. 374Water Inc. (NASDAQ:SCWO)
Total Market Cap (As of November 7): $418.7M

Based in Durham, North Carolina, 374Water Inc. (NASDAQ:SCWO) is an American waste management company which specializes in pollution and treatment control, waste collection and disposal, and the development of wastewater treatment systems. It is a social impact, cleantech company, which procures innovative IT solutions to inculcate a circular economy and a clean environment. Founded in 2018, the company is funded by the U.S. Department of Energy, Bill and Melinda Gates Foundation and Duke University. As of the third quarter of 2022, 374Water Inc. (NASDAQ:SCWO) posted a total revenue of $922,718.

374Water Inc. (NASDAQ:SCWO) largely focuses on developing and providing technology which addresses environmental pollution challenges. It has developed a waste stream treatment system which relies on supercritical water oxidation technology. Furthermore, the company's AirSCWO systems are widely used in the treatment and disposal of hazardous and non-hazardous waste streams. 374Water's (NASDAQ:SCWO) client base consists of channel partners, engineering companies, construction companies, waste service providers and NGOs.

9. Schnitzer Steel Industries Inc. (NASDAQ:SCHN)
Total Market Cap (As of November 7): $878.8M

Based in Portland, Oregon, Schnitzer Steel Industries (NASDAQ:SCHN) is an American manufacturer of steel and a waste management company which largely focuses on scrap metal and non-hazardous solid waste recycling. Founded in 1906 as a one-person scrap metal recycler, the company went public in 1993 via an initial public offering and got listed on the NASDAQ stock exchange and Russel 2000 index. Since then, Schnitzer Steel Industries (NASDAQ:SCHN) has undergone massive growth through multiple acquisitions, the most notable being GreenLeaf Auto Recyclers, State Line Scrap Co, and Advanced Recycling. As of the third quarter of 2022, the company posted a total revenue of $894.4 million.

Schnitzer Steel Industries (NASDAQ:SCHN) focuses on the recycling of ferrous and non-ferrous metal. The company collects, processes, and recycles salvaged vehicles, rail cars, home appliances, industrial machinery and construction and demolition scrap. It has more than 54 metals recycling facilities, an electric arc furnace steel mill, and more than 51 retail self-service auto parts stores across the United States. Schnitzer Steel Industries (NASDAQ:SCHN) produces and sells various finished steel products through its recycling operations, like wire rods, coiled rebar, and other specialty products. Furthermore, Schnitzer Steel Industries (NASDAQ:SCHN) is also an industry leader in the procurement and sale of catalytic converters to specialty processors which use it in the extraction of non-ferrous metal products like platinum, palladium and rhodium. The company has more than 3,471 employees across more than 40 U.S. states.

8. PureCycle Technologies Inc. (NASDAQ:PCT)
Total Market Cap (As of November 7): $1.25B

Headquartered in Orlando, Florida, PureCycle Technologies Inc. (NASDAQ:PCT) is an American recycling company which specializes in the collection, processing, and conversion of polypropylene plastic waste into almost-new plastic. The company develops patented recycling processes, in collaboration with Procter and Gamble, which separates color, odor, and contaminants from plastic waste feedstock to convert it into pure recycled polypropylene (PP). This state-of-the-art process completes the loop on the reuse of recycled plastics and makes recycled polypropylene more accessible at scale to consumers. PureCycle Technologies Inc. (NASDAQ:PCT) has total of 119 employees nationwide. The company went public on May 4, 2020, raising more than $76.5 million in investment.

With more than 170 billion pounds of PP produced annually, with an averaged 5% rate of growth over the last decade, there has been an increased demand for PureCycle Technologies' (NASDAQ:PCT) Ultra-Pure Recycled (UPR) resin patent. Skyrocketing consumer demand, major multinational sustainability commitments, new recycled content restrictions, and non-recycled plastic taxes have driven the demand for the company's UPR resin, with PureCycle Technologies Inc. (NASDAQ:PCT) being the only UPR resin provider in the waste management industry. The company has garnered favorable hedge fund sentiment over the years, with some of the most prominent hedge funds to have stakes in the company including the likes of Sylebra Capital Management, Harvard Management Company, and Atalan Capital.

7. U.S. Ecology Inc. (NASDAQ:ECOL)
Total Market Cap (As of November 7): $1.51B

U.S. Ecology Inc. (NASDAQ:ECOL) is an American waste management, waste treatment, and recycling company based in Boise, Idaho. Founded in 1952, the company is parented by Republic Services, which is an American waste collection and disposal company. In 2021, the company generated a total revenue of $988 million, with gross profit reaching up to $233.1 million. Some hedge funds which hold stakes in U.S. Ecology Inc. (NASDAQ:ECOL) include Springbok Capital, Centiva Capital, and ExodusPoint Capital.

U.S. Ecology Inc. (NASDAQ:ECOL) is an industry leader in hazardous waste collection, treatment and disposal, and offers a diverse portfolio of waste disposal options and waste treatment capabilities in the industry, and also offers waste transportation services to commercial and governmental organizations in the United States. The company is spread over 100 service locations and 35 disposal facilities across the United States, and has operations in the U.S, Canada, and Mexico.

6. Casella Waste Systems Inc. (NASDAQ:CWST)
Total Market Cap (As of November 7): $4.19B

Based in Rutland, Vermont, Casella Waste Systems (NASDAQ:CWST) is an American waste management company which provides resource management expertise and services to residential, commercial, municipal, and industrial customers, especially focusing on solid waste collection and disposal, transport, recycling, and organics services. In the third quarter of 2022, Casella Waste Systems (NASDAQ:CWST) generated a total revenue of $295.3 million, with total full-time employees ranging up to 2,900 nationwide. Some of the most prominent hedge funds to hold stakes in Casella Waste Systems (NASDAQ:CWST) as of Q2 2022 are Jim Simons' Renaissance Technologies, Israel Englander's Millennium Management, and Richard Driehaus' Driehaus Capital.

Casella Waste Systems (NASDAQ:CWST) provides integrated solid waste services in seven states, including Vermont, New Hampshire, New York, Pennsylvania. The company's services are managed on a geographical basis, through two eastern and western operating segments. As of November 2022, Casella Waste Systems (NASDAQ:CWST) owns and operates more than 42 solid waste collection operations, 59 transfer stations, 18 recycling facilities, 9 Subtitle D landfills, four landfill gas-to-energy facilities, and one landfill which has unrestricted permission to accept C&D materials.

5. Clean Harbors Inc. (NYSE:CLH)

Total Market Cap (As of November 7): $6.01B

Based in Norwell, Massachusetts, Clean Harbors Inc. (NYSE:CLH) is an American waste management company which specializes in the provision of environmental and industrial services, hazardous waste disposal, and solid waste disposal. In the third quarter of 2022, the company generated a total revenue of $1.36 billion against an operating expense of $243.4 million. As of November 2022, Clean Harbors Inc. (NYSE:CLH) has more than 18,000 employees throughout its facilities in the United States, Mexico, Canada, and Puerto Rico.

Clean Harbors Inc. (NYSE:CLH) operates through two primary segments: Environmental Services and Safety-Kleen Sustainability Solutions. The former concerns itself with the collection, transport, treatment, and disposal of hazardous and non-hazardous solid waste. The processes by which these services are carried out include resource recovery, physical treatment, fuel blending, incineration, and landfill disposal. The segment also provides industrial maintenance and specialty industrial services. Clean Harbors Inc. (NYSE:CLH) has expanded significantly since it was incorporated in 1980 through organic growth and approximately 35 acquisitions. Major acquisitions include Eveready Inc, Peak Energy Services, Safety-Kleen Systems, which has been their most profitable acquisition to date. As of November 2022, the company has over 430 service locations across the North American continent including 60 hazardous waste management facilities in 38 U.S. states, seven Canadian provinces, Mexico and Puerto Rico.

4. Stericycle Inc. (NASDAQ:SRCL)

Total Market Cap (As of November 7):

Based in Bannockburn, Illinois, Stericycle Inc. (NASDAQ:SRCL) is an American compliance company which specializes in the collection and disposal of regulated substances, such as medical waste sharps, hazardous waste, and solid waste. The company also provides training services and has multiple bases of operation all across the world. Stericycle’s (NASDAQ:SRCL) services range from regulated waste management services, sharping disposal containers to reduce the risk of needlesticks, drug disposal, healthcare compliance, and pharmaceutical disposal. The company acquired Shred-it in 2015, thereby adding secure information destruction services to its portfolio. In the third quarter of 2022, Stericycle Inc. (NASDAQ:SRCL) generated a total revenue of $690.3 million against an operating expense of $215.6 million.

Stericycle Inc. (NASDAQ:SRCL) has a global presence, with 14,500 employees in more than 640 locations across 21 countries. More than 25% of the company’s revenue is generated via its international operations, with the most prominent countries being the United States, Canada, Ireland, Spain, and Brazil. Stericycle Inc. (NASDAQ:SRCL) has also associated itself with many community causes including Feed My Starving Children, American Diabetes Association, National Safety Council, and even set up SteriCares Hardship Fund to provide monetary relief to impoverished families.

3. Waste Connections (NYSE:WCN)

Total Market Cap (As of November 7): $34.76B

Headquartered in The Woodlands, Texas, Waste Connections (NYSE:WCN) is a North American integrated waste services company which focuses on slid waste collection, transfer disposal, and recycling services. It is the third largest waste management company in the United States by overall market capitalization, with a total market cap of $34.7 billion as of November 7. Waste Connections (NYSE:WCN) generated a total revenue of $1.88 billion in Q3 2022. Founded in 1997 in Folsom, California, Waste Connections (NYSE:WCN) has 19,998 employees across operational facilities in the United States and Canada.

As of Q4 2021, more than 70% of the company’s revenue was from solid waste collection, 21% from solid waste disposal and transfer, 4% from recycling, and 5% from its oil industry waste operations. 16% of the company’s total revenue was from Canada while the rest was from the United States. Waste Connections’ (NYSE:WCN) primary services include waste collection and disposal services. These services are often carried out through contractual operations with municipalities to collect the waste in that respective jurisdiction for an agreed-upon rate. The services are provided directly to residential, commercial and industrial clients. Furthermore, Waste Connections (NYSE:WCN) owns and operates more than 87 solid waste landfills as of November 2022. Since the company’s incorporation in 1997, the company has achieved growth through notable acquisitions of R360 Environmental Solutions and Progressive Waste Services of Canada, among others.

2. Republic Services Inc. (NYSE:RSG)

Total Market Cap (As of November 7): $40.7B

Based in Scottsdale, Arizona, Republic Services Inc. (NYSE:RSG) is an American waste management service provider which specializes in non-hazardous solid waste collection, waste transfer, waste disposal, recycling, and energy services. Founded in 1998, Republic Services Inc. (NYSE:RSG) generated a total revenue of $3.6 billion in the third quarter of 2022. The company owns and operates more than 195 active landfills and 90 recycling centers across the United States. Republic Services Inc. (NYSE:RSG) owns the largest landfill in the U.S, at 2,200 acres. With over 35,000 employees nationwide, it is the second largest garbage company in the United States by overall market capitalization.

Republic Services’ (NYSE:RSG) operations primarily comprise the collection, transfer, and disposal of non-hazardous solid waste. The company operates in more than 43 states across the United States, and with 343 collection operations, 204 transfer stations, 7 treatment, recovery, and disposal facilities, and 11 salt water disposal wells, the company is an industry leader in waste management. Republic Services Inc. (NYSE:RSG) is subject to different federal, state and local regulations which oversee the environmental, public health, safety, zoning, and land use impact of the corporation. The U.S. Environmental Protection Agency administer these regulations. Furthermore, the company dedicates more than 45% of its earnings into the development and production of new technologies and the initiation of new programs across the United States.

1. Waste Management Inc. (NYSE:WM)

Total Market Cap (As of November 7): $64.32B

Based in Houston, Texas, Waste Management Inc. (NYSE:WM) is an American waste management, comprehensive waste, and environmental services company. It is the largest waste management company in the United States by overall market capitalization, and together with Republic Services Inc. (NYSE:RSG), handles more than half of all garbage collection in the United States. As of the third quarter of 2022, Waste Management Inc. (NYSE:WM) posted a total revenue of $5.08 billion. The company offers garbage collection services to more than 22 million residential, industrial, municipal, and commercial customers across the United States, Canada, and Puerto Rico. With a total of 48,500 employees across the North American continent, the company is an industry leader in garbage collection, transfer, and disposal.

Waste Management’s (NYSE:WM) network comprises more than 346 transfer stations, 293 active landfill disposal sites, 146 recycling plants, 111 beneficial-use landfill gas projects and six power production plants. With over 26,000 collection and transfer vehicles, the company has the most expansive trucking network in the U.S. waste management sector. It recycles more than 9 million tonnes of materials at over 146 facilities nationwide, ranging from single-stream recycling, electronic recycling, and recycling of organic waste and construction debris. Since its incorporation in 1968, Waste Management Inc. (NYSE:WM) has achieved massive growth through both, organic methods and acquisitions. The company is also a marketing behemoth, with multi-million dollar marketing agreements with CBS, the Transformers franchise, and the Walt Disney Company. In February 2022, the company rebranded to WM (NYSE:WM), and adopted a new slogan – “for tomorrow.”


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>>> Occidental to break ground on Texas direct air capture project


Reuters

August 23, 2022


https://finance.yahoo.com/news/occidental-break-ground-texas-direct-212222238.html


DENVER, Aug 23 (Reuters) - U.S. oil producer Occidental Petroleum Corp will begin construction on its first carbon capture project this fall, an official told an industry group on Tuesday, a key part of its effort to build a business from greenhouse gas reduction.

Tom Janiszewski, vice president of regulatory and land for Occidental, told the Colorado Oil and Gas Association's annual summit that the West Texas facility would begin operations by 2024.

Occidental's Low Carbon Ventures LLC arm formed 1PointFive with venture capital firm Rusheen Capital Management to license, finance and deploy direct air capture (DAC) technology, a method of extracting carbon dioxide from the atmosphere.

The precise location for the West Texas facility has not been identified, but Occidental has applied for tax credits for a project in Ector County. The business also is evaluating a site in Livingston Parish, Louisiana, for a separate DAC operation.

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Carbon Capture receives the 'Human Follies' Award -





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>>> Peter Thiel-Backed ETF Takes Aim at ESG


ETF.com

Heather Bell

August 10, 2022


https://finance.yahoo.com/news/peter-thiel-backed-etf-takes-200000512.html


The Strive U.S. Energy ETF (DRLL), a new exchange-traded fund that launched Tuesday, aims to free investors from the “destructive mandates” of traditional environment, social and governance investing.

The fund invests in broad energy stocks via the Solactive United States Energy Regulated Capped Index. Matt Cole, Strive Asset Management’s head of product, said ESG has been a drag on the energy sector—despite the segment’s strengths. “We started with the energy sector for a reason,” he said in an interview with ETF.com. “We think the U.S. energy sector [has] been impacted the most.”

The firm is not denying climate change science, Cole added, but believes the best route to effect change is through political activism. While piecemeal reforms at individual energy companies have relatively little impact, legislation and shareholder advocacy would apply to all.

“Our ETFs are passive right now, but our voter voice will be very active in these companies,” he said, noting that Strive plans to put forth proposals that make sense. “We think it's going to be very hard for a lot of asset managers not to support them, because they're in the best interest of these companies.”

Strive, which was co-founded by Vivek Ramaswamy and often described as “anti-woke,” has the backing of famous names like Peter Thiel and Bill Ackman, and intends to compete with asset management giants like BlackRock Inc., Vanguard Group and State Street Global Advisors.

“We bring a significantly different vote and voice to the table than our competitors,” Cole noted.

While most energy ETFs are already up 30% or more year to date, the company expects stocks in the energy sector to appreciate “multi-fold” in the next two years due to China easing its pandemic lockdown policies and lessening supply shortages stemming from the war in Ukraine.

“The largest U.S. asset managers have shackled U.S. energy companies with so-called ‘scope 3 emissions caps’ and other destructive mandates that contributed to the American energy crisis today,” Ramaswamy said in a press release.

DRLL covers more than 50 energy companies, taking a broad-based approach to the space and spanning both conventional and renewable energy firms. Its underlying index is weighted by modified market capitalization, according to the prospectus. Cole said that the fund has had a 99.7% correlation with large energy ETFs offered by major issuers over the last several years, with very similar risk and return.

The new fund comes with an expense ratio of 0.41% and lists on the NYSE Arca.

The narrower Energy Select Sector SPDR Fund (XLE), the largest ETF in the category, at more than $35 billion, has 21 holdings but comes with an expense ratio of just 0.10%. The much broader $1.45 billion Fidelity MSCI Energy Index ETF (FENY) charges just 0.08%. DRLL’s expense ratio is on par with that of the $2.11 billion iShares U.S. Energy ETF (IYE), which also charges 0.41%.

The firm has four more ETFs in registration covering semiconductors, large cap U.S. stocks, technology and emerging market ex-China.

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>>> Carbon Credit ETFs Nosedive Amid Russia Tensions


ETF.com

by Dan Mika

March 7, 2022


https://finance.yahoo.com/news/carbon-credit-etfs-nosedive-amid-221500943.html


Carbon credit ETFs have been brutalized in the past several days as fears over whether Europe can keep its lights on and its vehicles running without Russian fossil fuel exports have sent energy prices soaring.

The four U.S.-listed ETFs that directly hold carbon credits have all lost at least a quarter of their price year-to-date, with the KraneShares European Carbon Allowance ETF (KEUA) falling more than 31% as of market open on Monday.

KEUA is suffering from the double-whammy of Europe’s reliance on Russian oil and gas, and the European Union’s combined carbon trading system that currently aims to reduce the amount of carbon allowances by 2.2% annually. The trading platform is part of the bloc’s plans to reduce its emissions by 55% by the end of the decade and become carbon-neutral by 2050.

Fears have also compounded in Europe over whether the continent will fall into recession due to a lack of power driving down factory orders. In that case, regulated industries won’t need to buy as many carbon allowances, said John Wilson, co-CEO and managing partner of Toronto-based alternative investments firm Ninepoint Partners.

“There's a ton of concern that Europe is going to go into a deep recession here,” he said. “There's talk about an embargo on Russian oil and gas. That's where a big percentage of Germany's energy needs come from, and they're the economic engine of Europe.

High energy prices in Europe prior to Russia’s invasion of Ukraine have also added to uncertainty about the sustainability of carbon allowance prices, with Poland in particular making noise. The Polish parliament passed a resolution last December calling for the European cap-and-trade market to be suspended, and in February demanded the European Commission kick out financial institutions for allegedly bringing undue speculation into the market.

The disruptions in Europe, which accounted for approximately 90% of the global carbon market in 2020, are pushing down prices for credits across the world, including down to carbon markets with smaller geographic range. The KraneShares California Carbon Allowance Strategy ETF (KCCA) tracks the joint carbon credit market in California and Quebec, and has fallen more than 25% year-to-date.

The short-term drops have sent KEUA and KCCA into all-time loss territory, as both of those funds launched last October, but the space is still a long-term gainer. The iPath Series B Carbon ETN (GRN) and the KraneShares Global Carbon Strategy ETF (KRBN) are up 138% and 81%, respectively, over a two-year period as ESG and climate-friendly investing grew in popularity.

Wilson, whose firm operates its own carbon allowance ETFs on the Canadian NEO Exchange, believes the recent sell-off amounts to short-term repositioning, and expects the segment to be worth trillions of dollars over the next several years as world governments keep aiming to slash emissions.

“We're going to have to get off of Russian energy and maybe produce more domestically, but high energy prices are a driving incentive for more renewables,” he said. “I don't think it delays that transition. If anything, it's a necessary function of making that transition happen.”

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>>> Aptar Named One of Barron’s 100 Most Sustainable Companies in the U.S. for the Fourth Consecutive Year


BusinessWire

February 21, 2022


https://finance.yahoo.com/news/aptar-named-one-barron-100-220000004.html


CRYSTAL LAKE, Ill., February 21, 2022--(BUSINESS WIRE)--AptarGroup, Inc. (NYSE: ATR), a global leader in drug delivery, consumer product dispensing and active material science solutions, has again been named one of Barron’s 100 Most Sustainable Companies. Aptar is ranked number 70 for 2022 and this marks the fourth consecutive year Aptar has been included on Barron’s esteemed list.

"We are proud to once again be named one of Barron’s 100 Most Sustainable Companies due to our continued progress in key sustainability areas such as managing our suppliers and water risk," said Stephan Tanda, Aptar President and CEO. "We are committed to evolving our business in a sustainable way and to always doing what is best for the planet, our people and our shareholders."

The Company’s focus on eco-design of products and science-based targets is aligned to that of its partners such as the Ellen MacArthur Foundation, the World Business Council for Sustainable Development and many other organizations who are working towards a more circular economy. Aptar is also an active member of the United Nations Global Compact and the CE100 Network. Aptar recently received the Platinum level rating in recognition of its sustainability efforts from EcoVadis, which places Aptar among the top 1% of the nearly 85,000 companies rated by EcoVadis across all industries.

This is the fifth year Barron’s has published its list of companies with the highest ESG (Environmental, Social and Governance) scores. The Calvert Research and Management firm evaluated the 1,000 largest publicly traded companies by market value, then ranked each by how they performed for five key constituencies: shareholders, employees, customers, community and the planet. Next, Calvert looked at top companies in 230 ESG performance indicators including workplace diversity, data security and green-house gas emissions. Barron’s full list of 100 Most Sustainable Companies can be found here.

About Aptar

Aptar is a global leader in the design and manufacturing of a broad range of drug delivery, consumer product dispensing and active material science solutions. Aptar’s innovative solutions and services serve a variety of end markets including pharmaceutical, beauty, personal care, home care, food and beverage. Using insights, proprietary design, engineering and science to create dispensing, dosing and protective technologies for many of the world’s leading brands, Aptar in turn makes a meaningful difference in the lives, looks, health and homes of millions of patients and consumers around the world. Aptar is headquartered in Crystal Lake, Illinois and has 13,000 dedicated employees in 20 countries.

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>>> Balchem Releases 2021 Sustainability Report


Balchem Corporation

April 22, 2022


https://finance.yahoo.com/news/balchem-releases-2021-sustainability-report-110000439.html


NEW HAMPTON, N.Y., April 22, 2022 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ: BCPC) today released its 2021 Sustainability Report, which captures the Company's commitment to managing our Environmental, Social and Governance (ESG) performance. Balchem’s sustainability initiatives are fully integrated into our business strategy and are critical to our vision of making the world a healthier place. Our Sustainability Report demonstrates the Company's continuing promise to provide our employees, customers, shareholders and the communities within which we operate with information on Balchem’s sustainability initiatives.

“I am pleased with the progress Balchem has made over the last year to advance our sustainability efforts,” said Ted Harris, Chairman, Chief Executive Officer, and President. “We are excited about our future and our ability to provide solutions for the health and nutritional needs of the world while acting as strong stewards of all of our stakeholders.”

Highlights of the report include:

We celebrated the one-year anniversary of our commitment to the UN Global Compact, confirming our alignment with the Ten Principles on human rights, labor, the environment, and anti-corruption.

Progress on our 2030 goals and strategies for both emissions and water usage reduction by 25%.

The number of people and animals reached around the world by our health and nutrition products.

Our continuous focus on employee safety and product quality.

We took meaningful steps toward advancing diversity, inclusion, and belonging at Balchem, and remain committed to fostering a diverse and inclusive culture in which everyone feels welcomed, valued, and appreciated, while inspiring our external stakeholders to share our vision.

Expanded our Balchem Helping Hands initiative which includes Balchem’s philanthropic partnerships, a matching donation program, and an employee volunteering program.

Additional transparency surrounding our initiatives in Governance, including Board Diversity and Risk Management.

Newsweek magazine named Balchem one of America’s Most Responsible Companies for the second consecutive year.

For more information visit balchem.com/sustainability

About Balchem Corporation

Balchem Corporation develops, manufactures and markets specialty ingredients that improve and enhance the health and well-being of life on the planet, providing state-of-the-art solutions and the finest quality products for a range of industries worldwide. The company reports three business segments: Human Nutrition & Health; Animal Nutrition & Health; and Specialty Products. The Human Nutrition & Health segment delivers customized food and beverage ingredient systems, as well as key nutrients into a variety of applications across the food, supplement and pharmaceutical industries. The Animal Nutrition & Health segment manufactures and supplies products to numerous animal health markets. Through Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries, and also provides chelated minerals to the micronutrient agricultural market.

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>>> 2022 will be the year that ESG 'starts driving markets a lot more,' Jefferies Global Head of ESG says


Yahoo Finance

by Grace O'Donnell

December 31, 2021


https://finance.yahoo.com/news/2022-esg-markets-jefferies-180441900.html


A number of catalysts poised to converge in 2022 will give a lift to global sustainable and ESG assets next year, according to a recent note from Jefferies.

“We are seeing 2022 as the year when ESG not only becomes mainstream, but it starts driving markets a lot more,” Jefferies Global Head of ESG and Sustainability Research Aniket Shah said on Yahoo Finance Live (video above). “And the reason why this will happen is because core parts of the financial system, including the central banks, are going to become even more serious about climate change as they are today.”

The market for ESG funds set a record in 2020 and continued to grow in 2021, especially in a robust first quarter. In total, an estimated $120 billion have flowed into ESG exchange-traded funds this year.

In 2022, the velocity of ESG investing is likely to continue with 11 catalytic events propelling the market, according to Jefferies analysts. A majority of the catalysts fall under policy and regulatory changes as national governments and central banks get serious about climate change and decarbonization targets.

“We've seen a lot of action, frankly, on the fiscal side — globally, not necessarily in the U.S. — on renewables and on energy,” Shah said. “We can expect more of that here in the States next year. And I think all around the world, you're going to see more involvement from central banks, which will be a very nice one-two punch.”

The no. 1 catalyst for continued ESG momentum

2021 began with considerable optimism for ESG funds — and flows to boot — on the prospect of significant federal investment in climate adaptation with the incoming Biden administration and Democratic control of Congress.

In anticipation, renewable energy stocks and ETFs rallied hard throughout the second half of 2020. Invesco's Solar ETF (TAN), for instance, rose over 230%, reaching its peak on Jan. 1, 2020.

The Biden administration took one key step by rejoining the Paris Agreement and Congress passed the $1.2 trillion infrastructure bill. However, some of the optimism has been dampened as President Biden's Build Back Better agenda — which would be the largest effort to address climate change in U.S. history — has all but ground to a halt.

“We see BBB passing in the first half of 2022, with a significant portion of the House-version being passed through the Senate,” the analysts wrote on Dec. 13, acknowledging that a delay from centrist Sens. Manchin (D-WV) and Sinema (D-AZ) would be likely. Should the bill eventually pass the Senate with climate provisions resembling the $555 billion allotted by the House-passed version, “this will provide medium-term tailwinds to renewables, EVs, and CCS-oriented companies.” (CCS refers to carbon capture and storage.)

Speaking before comments by Manchin left Build Back Better in a lurch, Shah stated: “The number one, and perhaps most important, catalyst for a continuation of this momentum around ESG is the reconciliation package here in the United States, the Build Back Better bill.”

From a global perspective, efforts to find a way forward for Biden's social spending and climate investment plan are part of a larger trend that the analysts highlighted: greater decarbonization efforts in the U.S., Europe, and China, but declining international cooperation.

And while the shape of some of these policies will come down to midterm elections, in the U.S. and in France, for example, “we can expect a lot more of this happening not just in the United States, but all around the world, whether it's the EU Green Deal, efforts that are underway in China and other major economies,” Shah said.

European countries have dominated when it comes to sustainable finance and green bond issuance, in particular. But despite a more laggard approach to sustainability rules, the U.S. may catch up anyway. As another strategist told Yahoo Finance Live recently, markets — not governments — will lead the way in the United States.

“The United States is really poised to go on its own journey and run its own race in 2022,” Aaron Franklin, head of sustainable finance at SMBC, said. “It's a lot less of a policy-driven market in the United States and a lot more driven by what asset managers need to see, what banks need to see, and how companies can differentiate themselves. That's distinguished from the European approach of having a bit more of a top-down, did this comply with the definition of sustainability.”

Green monetary policy

Central banks, too, could bolster the market for ESG assets as the institutions become “more forceful on green monetary policy,” according to the note.

“There are a whole bunch of policy instruments that central banks can play, whether it's stress tests, whether it's actual asset purchasing, differential treatment of green versus brown assets from a capital requirement perspective for banks,” Shah said. “We think next year is the year that this becomes mainstream and integrated in major central banks around the world.”

Among the biggest changes that 2022 could bring for ESG investing are new guidelines for disclosing climate-related risks, opportunities, and metrics. In the U.S., the SEC collected public comments on climate change disclosures between March and June 2021 and received more than 5,000 statements, with a majority in favor of more stringent disclosure requirements to clamp down on greenwashing (falsely portraying or providing misleading information about a company's environmental efforts).

“We see the SEC endorsing mandatory climate disclosures in 2022 for implementation in 2023-2024,” the Jefferies analysts wrote, also predicting that “the SEC climate disclosures will loosely resemble the approach of the TCFD,” or the recommendations laid out by the Task Force on Climate-related Financial Disclosures.

Furthermore, the International Sustainability Standards Board (ISSB), a body announced at the 2021 COP26 summit in Glasgow by the International Financial Reporting Standards Foundation, could release a draft of global sustainable disclosures for financial markets in early 2022.

While the ISSB does not hold the authority to mandate disclosure requirements, it could establish a "comprehensive global baseline of sustainability-related disclosure standards" which other authorities and companies follow, the note said.

"We see the ISSB becoming the global standard-bearer of ESG disclosure in 2022," the analysts wrote. "As more companies disclose ESG-related information based on ISSB, the standard will become the driver of materiality, just like with financial disclosures. We recommend investors become familiar with the ISSB approach in 2022."

These standards could also prove to be an important driver of ESG alignment across disparate countries and jurisdictions. As the note emphasized, "the standards will be developed in such a way that they can be mandated and aligned with jurisdiction-specific requirements; it will be at the discretion of jurisdictional authorities to decide whether to mandate the use of the standards."

'A whole new era' for ESG investing

While COP26 garnered global attention as world leaders, business executives, activists, and many others gathered in Glasgow to discuss decarbonization solutions, its biodiversity equivalent, COP15, received much less attention. That could change next year as the second phase of COP15 is expected to take place from April 25 to May 8, 2022.

The overarching theme for ESG investors: a broader approach to companies' environmental frameworks beyond decarbonization.

“We see biodiversity becoming the new 'climate change' in 2022 and the COP15 UN Biodiversity Conference being the catalyst for this moment,” the Jefferies analysts wrote. “This could signal a whole new era for the ESG-focused investor. We see 2022 as the year that natural capital becomes a focus for investors, and over the next 2-3 years as when the investor community becomes more involved in the risks and opportunities therein.”

With over half of global GDP relying moderately or heavily on nature, according to research from the World Economic Forum — plus the additional but unaccounted-for value it provides — preventing a mass extinction of species may increasingly become a necessary concern for investors.

The energy transition won't take a back seat, however. “The general sentiment, though, from our team, the ESG team at Jefferies, is, 2022 will be a constructive year for the renewables play,” Shah said. “Over $130 trillion of capital from major financial institutions is now pledged towards financing the energy transition. To us, this is a structural tailwind for the sector, and we think that there will be many winners along the way.”

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>>> ESG Investing: Why Progress and Profits Aren’t Mutually Exclusive


Investing in an asset like farmland can help you meet more than just your financial goals.


MoneyWise

By Clayton Jarvis

Aug. 18, 2021


https://moneywise.com/investing/investing-basics/esg-investing-why-progress-and-profits-arent-mutually-exclusive


We’re confronted every day with the choice between making money and making a difference.

When it comes to investing, though, it’s not a choice you have to make.

The rise of socially conscious investing, also known as ESG (environmental, social and governance) investing, has created, and will continue to create, opportunities for investors to put their money where their morals are.

By investing with companies such as FarmTogether, you can have a hand in reversing the effects of some of the planet’s most alarming crises, from food shortages to climate destruction. By pouring money into such outfits, the hope is that their ESG goals will not only be accomplished, but adopted by other companies and corporations.

An obvious question is: “What about the returns?”

Let’s just say that ESG investing wouldn’t be the force it is today if people weren’t already making a whole lot of money off of it.

The state of ESG investing, circa now

More than $51 billion worth of capital made its way into sustainable investment funds in the U.S. in 2020. That’s more than double the amount invested in 2019, and a tenfold increase over 2018, according to data from financial services firm Morningstar.

Those investments have been paying off, too. In the first year of the COVID-19 pandemic, multiple investment funds with ESG leanings outperformed the market.

After analyzing 26 ESG ETFs and mutual funds with more than $250 million in assets under management, S&P Global Market Intelligence found that in the 12 months ending March 5, 2021, 19 of the funds outpaced the S&P 500, posting gains of between 27% and 55%.

Those that underperformed the S&P, which grew by 271% over the same 12-month period, still managed to generate returns of between roughly 18% and 26%. In a 2021 letter to his fellow CEOs, none other than Blackrock head Larry Fink touted the disruptive potential of ESG investing.

"As more and more investors choose to tilt their investments towards sustainability-focused companies, the tectonic shift we are seeing will accelerate further,” Fink wrote. “And because this will have such a dramatic impact on how capital is allocated, every management team and board will need to consider how this will impact their company's stock."

Solid returns and boundless upside should check two critical boxes for investors. But if you’re new to the concept of ESG investing, you’re probably wondering where putting your money will do the most good — for the planet and your portfolio.

FarmTogether: The ESG investor’s new best friend

When it comes to deciding which companies are a fit for your ESG investor dollars, you want to be on the lookout for outfits that have already displayed a talent for turning a responsible business model into solid returns. One company successfully flying the flag for ESG is farmland investment platform FarmTogether. “Long-term food security and sustainability are core to our mission. It’s really the ‘why’ for FarmTogether,” says company COO David Chan.

In order to continue feeding the growing global population amidst increasingly scarce natural resources, Chan explains, farmers are turning toward sustainable, “carbon-smart” farming practices. Most, however, lack the capital and financing these transitions require, presenting a threat to both food security and environmental integrity.

“FarmTogether was founded to channel this capital to drive agriculture toward sustainability on a massive scale, while opening a vital asset class to all investors,” he says.

In addition to driving impact — sustainable agricultural practices often result in more productive, more valuable land — FarmTogether’s approach is also driving income.

“Farmland investments have had stronger risk-adjusted returns than stocks, bonds, real estate and gold,” Chan says. “By implementing climate-smart practices, farmers can reduce costs and increase their bottom line, meaning better returns for themselves and our investors.”

ESG in action

Farming, sustainable development

Sustainability is baked into each step of FarmTogether’s business model, from choosing the operators the company leases its properties to to the nitty-gritty decisions that make each of its farms profitable.

“We work with our operators to implement micro-drip irrigation technology and climate-smart farming methods, such as cover cropping, minimizing tillage, and crop rotations, to make farms more efficient,” Chan says. “When applicable, we work with farmers to transition properties to organic operations, including our current offering, Daybreak Pear & Apple Orchard."

FarmTogether also partners with leading organizations, like Leading Harvest and Indigo Ag, to accelerate and scale innovations across the company’s offerings.

In January, FarmTogether enrolled its entire portfolio in NGO Leading Harvest’s Sustainable Farmland Management program. Leading Harvest's outcomes-based program can be applied across each crop and geography in FarmTogether’s portfolio, Chan says, “and covers everything from soil health, energy use, and water management to reduce the impacts of climate change.”

How FarmTogether works

For many investors, farmland remains a somewhat mysterious asset class. Being unfamiliar with farmland makes evaluating agricultural assets challenging, and the combination of high cost barriers and the lack of a trusted marketplace prevents farmland from making its way into most portfolios.

FarmTogether has removed those obstacles.

The company’s investment team takes on the responsibility of evaluating a steady stream of both on- and off-market farmland opportunities across the U.S. Only when a property meets FarmTogether’s rigid standards and has been deemed a profitable, sustainable play, is it presented to FarmTogether members through the company’s online platform, where they can get exposure to multiple U.S. farming operations, and create a diversified farmland portfolio, with a few taps of a cell phone screen.

So if you’re a qualified investor — a minimum investment of $15,000 is required — with a desire to put your money to work for the greater good, get yourself a free FarmTogether account and decide what kind of difference you want to make.

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>>> The Best ESG Funds For Great Returns & Low Costs


Forbes

Rob Berger, Benjamin Curry

Aug 1, 2021


https://www.forbes.com/advisor/investing/best-esg-funds/


Investing can help you achieve goals that go beyond monetary returns. While your focus as an investor should always be on getting the best possible performance, more and more people also want their money to reward companies that have a positive impact on the environment and society.

ESG investing is a strategy that channels dollars to companies that meet stringent environmental, social and governance standards. Investing in the best ESG mutual funds, index funds and exchange-traded funds (ETFs) can help you support responsible corporate behavior without sacrificing performance or incurring excessive fees.

While ESG investing alone cannot solve the problems of climate change, social injustice and income inequality, backing companies that actively work to address these challenges is a great place to start.

There are dozens of ESG funds to choose from. Forbes Advisor has combed through nearly 100 options to identify seven of the best ESG funds that we believe are worthy of your consideration.

How ESG Funds Work

Like any other type of fund, ESG funds adopt one of two possible approaches to portfolio construction. They passively track an index or actively pick investments based on their own research. We’ve included both active and passive ESG funds in our listing.

Active ESG mutual funds and ETFs conduct their own research to identify funds that meet their criteria. Passive ESG funds rely on third-party indexes to screen companies for their compliance with different environmental, social and governance criteria. These indexes choose companies whose ESG scores are above set thresholds, and ESG fund managers build a portfolio of investments that track the index’s performance.

For example, take the MSCI KLD 400 Social Index, launched in 1990. It tracks 400 U.S. companies with outstanding ESG ratings, and includes a mix of small-cap, mid-cap and large-cap companies.

Our profiles of the best ESG funds include a summary of how each fund constructs its portfolio, and whether it tracks an index or uses an active strategy for its portfolio choices. Understanding the ESG methodologies used by each fund is key for investors who want to align their choices with their own views on environmental, social and governance issues.


The Best ESG Funds of August 2021


Vanguard FTSE Social Index Fund (VFTAX)

5-year return
18.4%

10-year return:
15.6%

Expense ratio:
0.14%

Why We Picked It

iShares MSCI USA ESG Select ETF (SUSA)

5-year return:
17.5%

10-year return:
14.0%

Expense ratio:
0.25%

Why We Picked It

Parnassus Core Equity Investor (PRBLX)

5-year return:
16.1%

10-year return:
14.5%

Expense ratio:
0.87%

Why We Picked It

iShares Global Clean Energy ETF (ICLN)

5-year return:
23.6%

10-year return:
5.9%

Expense ratio:
0.46%

Why We Picked It

Shelton Green Alpha Fund (NEXTX)

5-year return:
21.6%

10-year return:
n/a

Expense ratio:
1.28%

Why We Picked It

1919 Socially Responsive Balanced Fund (SSIAX)

5-year return:
13.2%

10-year return:
9.8%

Expense ratio:
1.26%

Why We Picked It


AllianceBernstein Sustainable Global Thematic Fund (ATEYX)

5-year return:
19.4%

10-year return:
10.5%

Expense ratio:
0.97%

Why We Picked It

Methodology

We began by looking at approximately 80 ETFs and mutual funds focused on ESG investing. While some investors are willing to sacrifice returns in exchange for ESG focused investments, we were not. We excluded funds that did not have at least three years of performance data. We also excluded funds whose performance fell significantly below the benchmark S&P 500 index or other ESG funds.

Beyond performance, we considered the costs associated with each fund. The index funds on our list are the least expensive we found, and tend to perform best over longer periods of time. We did include more expensive actively managed funds, based on their after-fee performance. It’s worth noting one word of caution.

Several ESG funds in our list had outsized performance on a one- or three-year basis. This performance in part reflects the remarkable price appreciation for growth stocks generally. How these funds will perform over much longer periods of time, which is far more important than short-term performance, is unknowable. It is certainly reasonable to believe that rising rates and a shift to value stocks could see many ESG funds underperform over the next five to 10 years.

Finally, we considered how each fund selects ESG companies and debt. Our goal wasn’t to impose our own value judgments on this selection. Rather, we were looking for a wide variety of methodologies and ESG concentrations (e.g., sustainable energy vs corporate governance).

What Is ESG Investing?

ESG investing is a strategy where people put their money to work in companies that have a positive net impact on the environment and society, led by a management team that achieves these goals via better corporate governance. The acronym ESG stands for environmental, social and governance, for the three core pillars of this investing philosophy:

Environment. How does a company manage its environmental impact? How much progress has it made in utilizing renewable energy sources? Is it attempting to minimize its carbon footprint? How does it handle air or water pollution arising from its operations? What is its attitude toward climate change? What about sustainability efforts in its supply chain?

Social. How does the company improve its social impact? Does it offer fair levels of compensation for employees? What are its policies regarding LGBTQ+ equality, racial diversity and inclusive hiring practices? How does a company advocate for social good in the wider world, beyond its limited sphere of business?

Governance. How does management and the board of directors address the interests of the company’s employees, shareholders, and customers? Is executive compensation balanced compared to pay for other employees? How does the company’s board and management drive positive change? Does the board foster diversity in leadership? Are its interactions with shareholders positive?

This is only a sample of the kinds of questions ESG investors ask themselves when they evaluate companies. ESG relies on independent research organizations to score public companies for their performance in addressing these issues. ESG scores aim to provide objective, credible ratings of how well a company manages their environmental, social and governance policies.

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>>> Is Socially Responsible Investing Costing You In Hidden Ways?


Investor's Business Daily

by MATT KRANTZ

11/19/2020


https://www.investors.com/etfs-and-funds/etfs/esg-investing-socially-responsible-investing-costing-hidden-ways/?src=A00220


ESG investing may make you feel socially responsible. But is it costing you money, too?

Lately it is. Exchange traded funds with ESG investing goals don't tilt toward the stocks outperforming ever since this month's promising Covid-19 vaccine news. And that's energy and industrial stocks plus small companies' shares.

ESG investing's focus on large blend companies has been a good thing for years. But now value-oriented S&P 500 sectors and small companies are gaining. Investors are rushing into cyclical stocks, which tend to rally along with an economic recovery. Many ESG funds aren't positioned to capture this shift, if it lasts.

"The recent rotation toward value suggests that the growth-value style pendulum, at long last, could be swinging in value's favor," said Jack Ablin, chief investment officer at Cresset Capital Management.

ESG Investing Isn't A Value

The rotation to small and value stocks is noteworthy. And that doesn't play into ESG's favor.

The Vanguard Small-Cap Value ETF (VBR) is up 15.3% just this month so far through Nov. 18. That outpaces the 9.4% gain by the largest ESG ETF, the $11.8 billion-in-assets iShares ESG Aware MSCI USA ETF (ESGU).

Much of the recent lagging of ESG investing versus small value is due to ESG's large-cap focus. Roughly two-thirds of many popular ESG portfolios is in large blend and large growth stocks. And that's why the iShares ESG Aware MSCI USA ETF is in lockstep with the S&P 500 this month. The big-cap focused SPDR S&P 500 ETF (SPY) is up 9.1% this month.

Find The Most Promising Growth Stocks

"Most ESG ETFs are concentrated in megacap companies and provide limited exposure to small cap companies," says Todd Rosenbluth, head of mutual fund and ETF research at CFRA.

But, ESG investing's sector weightings aren't helping it catch the post-vaccine rally, either. The Vanguard Value ETF (VTV) is up 11.4% this month. It holds 3.9% of its portfolio in the sharply rebounding S&P 500 energy sector, the top sector of the month. That's roughly double the exposure of the iShares ESG Aware MSCI USA ETF.

Additionally, the Vanguard Value ETF puts 11.8% of its portfolio in industrials, or roughly two percentage points more than the largest ESG investing ETF.

Is ESG Investing Overexposed To Tech?

There's good news. ESG investing isn't vulnerable if tech stocks cool off as many people think. It's commonly thought ESG investing is tilted toward S&P 500 tech companies. But "data does not back up the old adage," Rosenbluth said.

The largest ESG investing ETF carries a 25% weighting to S&P 500 technology stocks. That's nearly in line with the S&P 500. Some ESG investing plays own more tech, though. The Invesco Solar ETF (TAN), with more than $2 billion in assets, puts roughly two-thirds of its portfolio in tech stocks.

With that said, value ETFs underweight tech. Vanguard Value holds just 7.8% in tech stocks.

And yet lately this month, the technology sector isn't where it's at. The Technology Select Sector SPDR ETF (XLK) is up 8.6% this month so far, well below energy and industrials. Energy stocks are up 23% this month and industrials 15%. They're the No. 1 and No. 2 S&P 500 sectors in November so far.

Do Your Values Collide With ESG Investing?

Rosenbluth still thinks ESG investing should neither help, or hurt, your portfolio materially over the long term. Plus, the rotation to small value stocks might falter, as has happened several times. Growth stocks have topped value for years.

And this year, for instance, the iShares ESG Aware MSCI USA ETF is up 14.2%. That's much stronger than the S&P 500's 10.7% gain this year. And some specialized ESG bets are doing even better, especially following the election. The Invesco Solar ETF is up a blistering 143% this year.

"We think investors that are focused on investing with a values-based approach should expect performance to generally be in line with the broader market over the long term," Rosenbluth said. "Some years they will lead and other years they will lag."

Most Large ESG ETFs Lag Value Stocks In November

They're not tilted to areas outperforming lately like energy, industrials and small caps


ETF Symbol November % Ch. Assets ($ Billions) Expense Ratio


iShares ESG Aware MSCI USA (ESGU) 9.4% $11.8 0.15%

iShares ESG Aware MSCI EM (ESGE) 9.2% $5.4 0.25%

iShares ESG Aware MSCI EAFE (ESGD) 13.8% $3.5 0.20%

Xtrackers MSCI USA ESG Leaders Equity (USSG) 10.3% $2.7 0.10%

iShares ESG MSCI USA Leaders (SUSL) 9.4% $2.7 0.10%

WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) 7.3% $2.6 0.32%

iShares Global Clean Energy (ICLN) 10.1% $2.5 0.46%

Vanguard ESG U.S. Stock (ESGV) 8.7% $2.5 0.12%

iShares MSCI KLD 400 Social (DSI) 8.7% $2.4 0.25%

Invesco Solar (TAN) 8.6% $2.2 0.71%

Non-ESG Comparisons

SPDR S&P 500 ETF Trust (SPY) 9.1% $323.7 0.10%

Vanguard Value (VTV) 11.4% $58.3 0.04%

Vanguard Small-Cap (VB) 12.9% $33.3 0.04%

Vanguard Small-Cap Value (VBR) 15.3% $16.0 0.07%


Sources: IBD, ETF.com

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>>> ESG ETFs Of All Shapes & Sizes


Yahoo Finance

November 11, 2020


https://finance.yahoo.com/news/esg-etfs-shapes-sizes-050000355.html


Key Takeaways

What is inside funds like the iShares ESG Aware MSCI USA ETF (ESGU) is different than newer entrants like the iShares ESG Screened S&P 500 ETF (XVV) and TrueShares ESG Active Opportunities ETF (ECOZ).

Some of the 17 clean energy ETFs, such as the Invesco Solar ETF (TAN) and ALPS Clean Energy ETF (ACES), have shined in the past year, but are also positioned to outperform, according to our analysis.

Meanwhile, our corporate governance ETF subcategory includes leadership-focused funds, such as the SPDR SSGA Gender Diversity ETF (SHE) and ownership-focused funds such as the WisdomTree Emerging Markets Ex-State-Owned Enterprises Fund (XSOE).

CFRA rates 112 environmental, social and governance (ESG) ETFs with more than $50 billion in assets, but few are the same. We classify ESG ETFs into one of seven subcategories based on the fund’s focus. The largest subcategory is broad ESG ETFs, which are ETFs that hold companies that meet specific ESG characteristics as determined by the ETF issuer or its index provider. ETFs are classified as broad ESG if the screening criteria spans all three ESG pillars.

ESGU is the largest of the 70 broad ESG ETFs, with $11 billion in assets, but the subcategory also includes the $7 million and actively managed ECOZ, which holds fewer positions than index-based ESGU and incorporated traditional fundamental and valuation metrics such as return on capital and intrinsic value. ECOZ holds less Apple (AAPL) and Microsoft (MSFT) than ESGU, and has Enphase Energy (ENPH) and Square (SQ) as its two largest positions.

The six other subcategories include clean energy, corporate governance and faith-based ETFs.

Breaking Down the ESG ETFs into Objectives

ECOZ is not the only broad ESG to launch in 2020, including XVV and the Vanguard ESG U.S. Corporate Bond ETF (VCEB), both of which came to market in September.

Clean energy ETFs have climbed the highest in 2020. Though ESGU has outperformed the SPDR S&P 500 ETF Trust (SPY) year-to-date through Nov. 6, rising 14% compared to 10%, respectively, many clean energy ETFs have been significantly stronger. CFRA classifies clean energy ETFs as funds holding companies in clean energy businesses such as renewable energy, clean energy technology and energy conservation. These ETFs are distinguished between low carbon footprint funds that hold companies that have a relatively low-carbon emission or a relatively small carbon footprint, as determined by the ETF issuer or its index provider.

TAN and ACES, which were up 145% and 84%, respectively, in 2020 are two examples of the 17 clean energy ETFs. ACES holds some solar companies, but also provides exposure to other renewable energy sources, including wind power and hydroelectricity, and clean technologies such as electric vehicles. For example, Tesla (TSLA) is among the recent top 10 holdings.

There are 10 corporate governance ETFs, but there is disparity among them. For example, the Impact Shares YWCA Women’s Empowerment ETF (WOMN) and SPDR SSGA Gender Diversity Index ETF (SHE) both hold stakes in companies that focus on gender diversity/equality. While SHE has more assets—$142 million compared to WOMN’s $10 million—the smaller fund has performed best. In the one-year period ended Nov. 6, WOMN’s 29% return was triple the 8.5% for SHE. WOMN launched in August 2018 and does not have the three-year record SHE provides.

Meanwhile, the WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) is constructed based on the premise that government ownership may influence corporate decisions that are not necessarily in the best interest of investors. In the three-year period ended Nov. 6, XSOE rose 7.5% on an annualized basis, double the gain for the iShares MSCI Emerging Markets ETF (EEM).

Conclusion

CFRA expects the supply of ESG ETFs to climb in 2021, in response to the strong demand in 2020 and the likelihood a Biden administration plans to make fighting climate change a priority. As the ETF universe becomes more crowded, we think investors will want to dig into certain ESG subcategories to understand their range of choices.

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KFA Global Carbon ETF - >>> KRBN ETF Update: Nobel-Prize Winning Economist, Robert Engle, Named Chairman of Climate Finance Partners Advisory Board as John Kerry Joins Biden Administration


Yahoo Finance

February 11, 2021


https://finance.yahoo.com/news/krbn-etf-nobel-prize-winning-130000165.html


NEW YORK, Feb. 11, 2021 /PRNewswire/ -- Climate Finance Partners (CLIFI), the sub-advisor to the KFA Global Carbon ETF (Ticker: KRBN), announced that Robert Engle has been named Chairman of the Climate Finance Partners Advisory Board.

Robert Engle is the 2003 recipient of the Nobel Prize in Economics and a preeminent expert in volatility measurement within financial markets. He is a thought-leader in climate change risk and sustainable investing and a professor at the NYU Stern School of Business. As the CLIFI advisory board's chairman, Engle will provide market expertise and investor education on the global carbon allowance markets.

Engle assumes the chairman position as his predecessor, 68th Secretary of State of the United States, John Kerry, joins the Biden administration as U.S. Special Presidential Envoy for Climate.

Robert Engle commented, "Experts agree that the best way to curb pollution and save the planet is to put a price on carbon emissions. I believe the Biden Administration rejoining the Paris Agreement, among other factors, will help raise the global price per ton of carbon emissions significantly in the coming years."

Climate Finance Partners has worked with IHS Markit to create the Global Carbon Index, which offers broad coverage of cap-and-trade carbon allowances by tracking the most traded carbon credit futures contracts. Currently, the index covers the major European and North American cap-and-trade programs: European Union Allowances (EUA), California Carbon Allowances (CCA), and the Regional Greenhouse Gas Initiative (RGGI).

"We are thrilled to have Robert as the Chairman of the Climate Finance Advisory Board," said Eron Bloomgarden, Partner at Climate Finance Partners. "As a Nobel laureate in financial markets and thought-leader in climate change risk and sustainable investing, Robert's expertise is an invaluable asset to our mission to provide innovative climate finance solutions to address environmental challenges."

Investors can now invest in the global carbon allowance market through the KFA Global Carbon ETF (Ticker: KRBN), which is benchmarked to The IHS Markit Global Carbon Index. The IHS Markit Global Carbon Index returned 31.21% in 2020.

Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. High short term results may not be repeatable. Performance information for the KFA Global Carbon ETF can be found at the following website www.kfafunds.com/krbn.

About Climate Finance Partners

KRBN is sub-advised by Climate Finance Partners (CLIFI). CLIFI delivers innovative climate finance solutions and investment products to address capital needs for emerging environmental challenges. CLIFI is led by a team of investment professionals with deep experience in the fields of traditional investment and environmental finance.

About KFA Funds - A KraneShares Company

Krane Funds Advisors, LLC is the investment manager for KFA Funds and KraneShares ETFs. The firm believes that investors should have cost-effective and transparent tools for attaining exposure to a wide variety of asset classes. The KFA Funds product suite delivers differentiated, high-conviction investment strategies to global investors through identifying groundbreaking capital market opportunities and developing them into investment vehicles that offer a source of non-traditional diversification. Krane Funds Advisors, LLC is majority-owned by China International Capital Corporation (CICC).

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>>> 7 Socially Responsible ETFs to Buy Now


These top ESG funds are for investors concerned about environmental, social and governance issues.

By Jeff Reeves

June 17, 2020

U.S. News & World Report


https://money.usnews.com/investing/funds/slideshows/socially-responsible-etfs-to-buy-now


Socially responsible ETFs to buy:

iShares MSCI KLD 400 Social ETF (DSI)
Vanguard ESG U.S. Stock ETF (ESGV)
iShares ESG MSCI EAFE ETF (ESGD)
SPDR SSGA Gender Diversity Index ETF (SHE)
Invesco Solar ETF (TAN)
SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX)
iShares MSCI USA ESG Select ETF (SUSA)


Investors and businesses around the world are expressing growing concerns over social issues such as climate change or diversity in the workplace. While Wall Street is chiefly concerned with profits, many executives understand climate change comes with real financial risks. Furthermore, the recent global protests against racism show that discriminating against certain customers is unacceptable. Many public corporations are now focused on ESG issues – that is, environmental, social and governance characteristics. Meanwhile, some index providers have begun to rank companies based on how ethically they operate, and there are accessible and affordable exchange-traded funds for people who want to invest without sacrificing their principles. Here are seven socially responsible ETFs that allow you to invest with ESG principles in mind.

iShares MSCI KLD 400 Social ETF (ticker: DSI)

At nearly $2 billion in assets, this iShares fund is not just one of the most popular socially responsible investment plays, but it's also a substantial fund across all categories with serious size and volume. Benchmarked to an index of about 400 large U.S. companies that includes Microsoft Corp. (MSFT) and Facebook (FB), this fund is designed to feature companies that post above-average ratings on ESG characteristics. Investors should be aware that this socially responsible ETF is pretty biased toward technology stocks; roughly 45% of holdings are either in information tech or communications. That may be good or bad, depending on your personal goals, but is worth noting.

Vanguard ESG U.S. Stock ETF (ESGV)

Though smaller in size than DSI with about $1.3 billion in total assets under management, this socially responsible ETF from Vanguard is tied to a much larger group of holdings with nearly 1,500 total components. It has a similar focus to the prior fund, as it includes U.S. companies with above-average ESG ratings; however, it includes a bunch of smaller names given the depth of the lineup of stocks. That may appeal to some investors, since top holdings remain old favorites such as Apple (AAPL). But further down the list are a host of relatively unknown stocks across all sectors of the U.S. economy.

iShares ESG MSCI EAFE ETF (ESGD)

This is another solid option as socially responsible ETFs go, but it excludes companies in the U.S. and Canada to take a more global approach to the ESG investing strategy. The result is a diverse group of almost 500 companies across geographies and sectors, including Swiss consumer giant Nestle (SWX: NESN) and Japanese automaker Toyota Motor Corp. (TYO: 7203). Investors should know that some companies in regions like Europe are even more progressive in their environmental, social and corporate governance efforts given greater regulation. For instance, in 2017, the U.K. enacted legislation that requires any business with 250 or more employees to publicly report its gender pay gap.

SPDR SSGA Gender Diversity Index ETF (SHE)

Perhaps best known for its 2016 debut that featured the "Fearless Girl" statue of a ponytailed tyke staring down Wall Street's famous bronze bull, this socially responsible ETF focuses on companies that feature better-than-average female representation on their executive committees compared with others in their industry. This doesn't mean a perfect balance of men and women, however. Top position PayPal Holdings (PYPL) has only four women on its leadership team of 11 people, for instance. That said, this ratio is better than its peers. And as representation of women in leadership continues to improve, so will the gender diversity of constituent stocks in this ETF.

Invesco Solar ETF (TAN)

With more than a decade of trading history, this solar energy ETF is among the oldest options for individual investors looking to invest in a more socially responsible way. With top stocks in this narrow subsector such as First Solar (FSLR) and SolarEdge Technologies (SEDG), TAN is a great way to gain exposure to the solar energy trend without going all-in on a single company. Of course, a laser focus on a group of 28 specialized holdings with basically the same business model is not without its risks. Solar sales are prone to volatility from year to year, and so is this ETF.

SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX)

If you care about going green but also want a broader range in your portfolio beyond renewable energy stocks, the SPDR S&P 500 Fossil Fuel Reserves Free ETF is a good option. SPYX simply takes all the oil, gas and fossil fuel companies from the list of stocks out of the popular S&P 500. That leaves the ESG investor with about 460 stocks that make up a typical index fund, save for the exclusion of energy giants such as Exxon Mobil Corp. (XOM). It's an interesting approach that incorporates a more diverse group of companies.

iShares MSCI USA ESG Select ETF (SUSA)

This socially responsible ETF is growing fast in popularity because of its "select" strategy, through which it places stricter requirements on components. With only 145 holdings in its portfolio, investors are not simply getting an S&P 500 fund that excludes Big Oil and Big Tobacco – you'll instead find a top cut of the biggest companies that truly take ESG issues seriously. Big tech names such as Apple are well-represented, with about 29% of assets in that sector, but there are also some names that may surprise you. For example, take home-improvement company Home Depot (HD) or consulting firm Accenture (ACN). This gives you a shorter list, but it's a decently diversified one to avoid relying on just the top few holdings alone.

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Ecofin - >>> Ecofin Global Water ESG Fund (EBLU) and Ecofin Digital Payments Infrastructure Fund (TPAY) will Transfer to NYSE Arca


Business Wire

December 21, 2020


https://www.businesswire.com/news/home/20201221005715/en/Ecofin-Global-Water-ESG-Fund-EBLU-and-Ecofin-Digital-Payments-Infrastructure-Fund-TPAY-will-Transfer-to-NYSE-Arca


LEAWOOD, Kan.--(BUSINESS WIRE)--Ecofin, which is focused on sustainable investing, today announced that it will transfer the listing of two exchange-traded funds from Cboe BZX to NYSE Arca upon market open on January 4, 2021.

Current shareholders are not required to take any action, nor is the transfer expected to have any effect on the trading of fund shares.

The following ETFs are retaining their current ticker symbol and transferring to NYSE Arca:

Ecofin ETF

Ticker

Ecofin Global Water ESG Fund

EBLU

Ecofin Digital Payments Infrastructure Fund

TPAY

By moving EBLU and TPAY to NYSE Arca, the adviser’s entire suite of ETFs will be available on one exchange.

For more information on these funds and how Ecofin is generating returns and making an impact, visit www.ecofininvest.com.

About the Ecofin Brand

Ecofin focuses on sustainable investments and is dedicated to uniting ecology and finance. Our mission is to generate strong risk-adjusted returns while optimizing investors’ impact on society. We are socially-minded, ESG-attentive investors, harnessing years of expertise investing in sustainable infrastructure, energy transition, clean water & environment and social impact. Our strategies are accessible through a variety of investment solutions and seek to achieve positive impacts that align with UN Sustainable Development Goals by addressing pressing global issues surrounding climate action, clean energy, water, education, healthcare and sustainable communities.

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>>> Not Just Growth: ESG Can Ride the Pivot to Value


ESG Channel

https://etfdb.com/esg-channel/not-just-growth-esg-ride-to-value/


Many market observers have argued that environmental, social, and governance fund strategies outperformed the broader markets due to the support from growth-heavy technology names that rallied over the past year, but strength in the value style could also further support the ESG segment.

According to the Bank of America, ESG funds have more exposure to cyclical sectors than the broader industry, Bloomberg reports. Specifically, ESG funds are overweight industrial, raw-material, and real-estate shares.

“One of the key pushbacks we often get from investors is that ESG benchmarks have outperformed because they are overweight tech and growth stocks,” Marisa Sullivan, head of U.S. ESG research for Bank of America Global Research, told Bloomberg. “We found they are overweight a lot of cyclical sectors, so maybe they aren’t as poorly positioned for a value rotation.”

Bank of America pointed out that ESG funds avoided the growth-oriented consumer services sector and have increased exposures to energy and utilities in recent months, but that they are still underweight those industries compared to the broader markets.

“There’s a little bit of a misconception that everything ESG-oriented has to be growth or tech heavy,” Omar Aguilar, chief investment officer of passive equity and multi-asset strategies for Charles Schwab Investment Management, told Bloomberg. “The evolution of these ESG strategies is still in flux, and the makeup of these ESG strategies will be a key part of how they evolve this year.”

Nevertheless, some ESG funds do include hefty tilts toward mega-cap technology names like Apple, Amazon, Google’s Alphabet, and Facebook. Consequently, they have took a hit when the tech segment recently pulled back.

“Those ESG funds that are heavily allocated to those growth-oriented stocks where their value is dependent on the value of their future cash flow, they’ll be super sensitive to what happens with longer-term interest rates,” Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, told Bloomberg.

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>>> This ESG Fund From Vanguard Is Off to a Good Start


The managers of the firm's first actively managed environmental, social, governance fund take a sensible, concentrated approach.


by David Kathman

Oct 21, 2020


https://www.morningstar.com/articles/1005324/this-esg-fund-from-vanguard-is-off-to-a-good-start


Mentioned: Atlas Copco AB (ATLKF), Vestas Wind Systems A/S (VWSYF), Merck & Co Inc (MRK), Microsoft Corp (MSFT), Deere & Co (DE), Danaher Corp (DHR), Taiwan Semiconductor Manufacturing Co Ltd (TSM), Vanguard Global ESG Select Stk Investor (VEIGX)

The following is our latest Fund Analyst Report for Vanguard Global ESG Select Stock (VEIGX). Morningstar Premium Members have access to full analyst reports such as this for more than 1,000 of the largest and best mutual funds. Not a Premium Member? Gain full access to our analyst reports and advanced tools immediately when you try Morningstar Premium free for 14 days.

Vanguard Global ESG Select Stock (VEIGX) has shown promise so far, but it still has plenty to prove given its short track record. It earns a Morningstar Analyst Rating of Bronze for both its Investor and Admiral shares.

Vanguard launched this fund in June 2019 as the first actively managed environmental, social, and governance fund in its lineup. It's subadvised by Wellington, which has had a fruitful decades-long relationship with Vanguard, and managed by Mark Mandel and Yolanda Courtines, former career research analysts at Wellington. Neither Mandel nor Courtines has managed a mutual fund before this one, but it helps that they're supported by Wellington’s deep and experienced team of global industry analysts and its fine ESG and sustainable investment team.

The process is a sensible one, without many bells and whistles. With the help of the analyst teams, Mandel and Courtines start with an investment universe of 750 large, highly liquid global stocks and narrow it down to a concentrated portfolio of 35-45 names. Returns on capital play a major role in their investment philosophy, which favors companies combining high and sustainable returns on equity with strong stewardship. The latter term encompasses traditional ESG concerns as well as broader issues of good corporate management. Among other things, the managers look for companies where executives have shown skill at effective capital allocation and have priorities aligned with a variety of stakeholders. They aim to keep the portfolio diversified, though there are few formal constraints. Valuation plays only a secondary role and is used mainly to determine position sizes.

The fund has looked pretty good so far in its first 16 months of existence; its returns have beaten the world large-stock Morningstar Category average and the FTSE All-World Index benchmark, and it has earned a Morningstar Sustainability Rating of High (5 globes). Expenses are low, as one would expect of Vanguard, which remains a topnotch parent. All this is encouraging, but the fund will need to deliver over a longer time period to earn an Analyst Rating higher than Bronze.

Process | Average

This fund uses a sensible process that integrates ESG considerations throughout. It's off to a good start, but its very short track record keeps the fund’s Process rating at Average.

The managers' stated goal is to outperform the fund’s benchmark (the FTSE All-World Index) by holding stocks that combine a high relative return on capital with good stewardship, which they believe can lower capital costs over time. Starting with an investment universe of 750 highly liquid global stocks, they use quantitative screens to narrow this down to 150 promising candidates, which they research intensively with the help of Wellington’s global industry analysts and ESG team. On the fundamental side, they focus on the sustainability of a company's returns on equity and the skill of its management at allocating capital; on the stewardship side, they look at each company's ESG priorities and willingness to engage.

The managers build a portfolio of 35-45 stocks out of the most attractive candidates. Position sizes are at least partly determined by valuation, with cheaper stocks getting larger positions; the managers also aim to keep the portfolio diversified by sectors, regions, and other factors. Formal limitations are few and fairly broad: sector weightings must be within 15 percentage points of the FTSE All-World Index benchmark, emerging markets can't be more than 20% of the portfolio, and cash can't be more than 10%.

People | Above Average

Mark Mandel and Yolanda Courtines have managed this fund since its June 4, 2019, inception. Although neither of them had managed a mutual fund before this one, they both had long careers as research analysts at Wellington before taking over here, and they draw on two topnotch analyst teams. The fund earns an Above Average People rating.

A Unique Choice for Income-Seekers

Mandel has been with Wellington since 1994, first as an analyst covering nonbank financials stocks, and from 2002 through 2017 as director of global research, overseeing Wellington's deep and experienced team of global industry analysts. In that role, he comanaged a separate account and three collective investment trusts that drew on his analysts' best stock picks. Courtines spent more than 20 years as an analyst covering Latin American and Eastern European banks, first for various sell-side firms and from 2006 for Wellington.

The analysts supporting this fund are among its most positive features. On the fundamental side, the managers are aided by Wellington's team of 53 global industry analysts, who average nearly 20 years of experience and have proved their mettle on other funds such as Vanguard Dividend Growth VDIGX. On the ESG side, they are supported by Wellington's 20-person ESG and sustainable investment team, which is larger and more experienced than most such teams at similarly sized investment shops.

Parent | High

The Vanguard Group entered a new era in early 2019 with the passing of its founder and conscience, John C. Bogle. Unlike its mid-1970s origins, when outflows were the norm and its survival was in question, Vanguard now wears the crown as the world's biggest retail asset manager. More than 90% of its USD 5.6 trillion in global assets under management, as of June 2019, are in the United States; but the firm has designs to grow its non-U.S. business, especially in the United Kingdom, Australia, Canada, Japan, China, and Mexico.

Vanguard gained its stature by following Bogle’s playbook: pairing relatively predictable strategies, both passive and active, with minimal costs. That’s enriched Vanguard’s investors, and those outside its flock who have benefited from industrywide fee compression. While Vanguard’s passive business now faces stiff price competition from its biggest rivals, inflows into its U.S. strategies still dominate.


Not content, Vanguard aims to transform investment advice, too. In May 2015, it launched Personal Advisor Services, a burgeoning discretionary asset-management business that pairs automation and human advice; and in September 2019 it disclosed plans to launch a digital-only counterpart. Vanguard’s industry leadership readily merits a High Parent rating, but the firm must stay on its guard to prioritize investor interests over merely expanding its kingdom.

Price

It’s critical to evaluate expenses, as they come directly out of returns. The share class on this report levies a fee that ranks in its Morningstar Category’s cheapest quintile. Based on our assessment of the fund’s People, Process and Parent pillars in the context of these fees, we think this share class will be able to deliver positive alpha relative to the category benchmark index, explaining its Morningstar Analyst Rating of Bronze.

Performance

This fund doesn't have much of a track record to evaluate yet, but it has looked pretty good so far in its short existence. From July 1, 2019, through Sept. 30, 2020, the Investor shares' 10.84% return beat both the world large-stock category average and the FTSE All-World Index benchmark by more than 2 percentage points, and its one-year and year-to-date returns through Sept. 30, 2020, beat about two thirds of the category. The fund held up pretty well in the bear market from Feb. 19 to March 23, 2020, when its 30% loss was 2 percentage points less than the category norm and the benchmark. Returns over such a short time frame don't mean too much, but the fund is off to a good start.

In its first 15 months of existence, most of the fund's excess return versus the category resulted from stock selection rather than sector weighting, which is consistent with the managers' goal. The biggest positive return relative to the category came from the industrials sector, with almost all of that coming from stock selection. Vestas Wind Systems (VWSYF) (up 90%), Danaher (DHR) (up 52%), Atlas Copco (ATLKF) (up 52%), and Deere (DE) (up 37%) were among the biggest industrials gainers in the portfolio over this period. As of June 30, 2020, Microsoft (MSFT) and Taiwan Semiconductor (TSM) were the only top-10 holdings from the FTSE All-World Index that were also in this fund's top 10.

Portfolio

As of June 30, 2020, the fund had 38 stock holdings, nearly all of them large caps. Software giant Microsoft and drugmaker Merck (MRK) were the two largest holdings. As of the same date, the fund had two big Morningstar sector overweightings relative to the world large-stock category: financials (by 11 percentage points) and industrials (by 6 percentage points). It was significantly underweight in communication services, consumer defensive, technology, and healthcare, plus energy, where it had no exposure.

In 2020's first quarter, the managers sold French oil company Total (the fund's only energy holding) and metal miner BHP, because the companies weren't moving in the direction of renewable energy as fast as the managers expected. To replace those holdings, the managers bought chemical company DSM, which is transitioning to animal health, and tire company Michelin, which is improving its sustainability profile.

As of Aug. 31, 2020, the fund had a Morningstar Sustainability Rating of 5 globes, with a sustainability score in the top 2% of its peer group. It also had the Morningstar Low Carbon Designation, with a very low Morningstar Portfolio Carbon Risk Score and Morningstar Portfolio Fossil Fuel Involvement. Those high ratings show that the managers have done a good job so far at holding the fund to high ESG standards.

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>>> 3 Hidden Gem ESG ETFs


Yahoo Finance

June 1, 2020


https://finance.yahoo.com/news/3-hidden-gem-esg-etfs-080000283.html


Environmental, social, and governance (ESG) ETFs are hot nowadays, both with investors and with issuers. There are now over 100 products on the market, which have collected some $31.76 billion in investment assets—overtaking assets invested in traditional energy ETFs for the first time.

But not every ESG ETF is—or even can be—a billion-dollar baby, and increasingly, the success of an ESG ETF comes down to the size of the issuer whose name appears on the label. iShares alone has seen $11.1 billion of the $14 billion in new net flows entering ESG ETFs year-to-date.

As a result, many differentiated, thoughtfully constructed ESG funds that have failed to attract attention from investors, in part because their issuers lack BlackRock's marketing might or pool of BYOA cash. But that doesn't mean they aren't good opportunities.

We sorted through the ESG ETFs with fewer than $100 million in assets under management as of May 26, 2020, and pulled out some of our favorite hidden ESG gems.

Divest From Authoritarianism With FRDM

Emerging markets offer investors growth potential and diversification, but also an ethical quandary: How do you invest in developing economies without also funding authoritarian regimes?

The vast majority of emerging markets ETFs continue to invest significant amounts of cash into the same problematic countries—China, Russia, Saudi Arabia, Brazil and others—even as these countries crack down on their citizens' freedoms. The Vanguard FTSE Emerging Markets ETF (VWO), for example, invests 54% of its portfolio in China, Russia, Saudi Arabia and Brazil, while the iShares Core MSCI Emerging Markets ETF (IEMG), invests 47%.

But it doesn't have to be that way. The Freedom 100 Emerging Market ETF (FRDM) offers an alternative approach that's unique among emerging markets ETFs.

FRDM weights countries by their freedom levels, a nebulous-sounding concept that actually encompasses 79 separate metrics, touching on everything from a country's capital market structure and freedoms of its press to the extent of human trafficking within the country's borders. The top ten freest countries are selected, and the top ten largest, non-state-owned equities from those countries are included in the fund's index.

As a result, FRDM's portfolio has no exposure to China, Russia, Saudi Arabia, Brazil and other problematic countries, instead weighting heavily to Taiwan (24%) and South Korea (21%). Regionally, these countries' economies are tied to China's while still remaining distinct, thus providing FRDM with a slight cushion when Chinese stocks stumble.

For example, FRDM has outperformed VWO and IEMG over the past month by more than a percentage point, rising 3.6% compared to VWO's 2.4% and IEMG's 2.3%:

We'd be remiss if we didn't also point out FRDM won our award for the best new international ETF of 2019.

Worried About Greenwashing? Try CHGX

One of ESG ETFs' most well-deserved criticisms, especially the broad market funds, is the issue of "greenwashing," or a seemingly lackadaisical approach to ensuring that the stocks in the portfolio actually adhere to the principles the ETFs purport to follow.

For example, many issuers have language in their funds' prospectuses about not investing in companies experiencing "severe business controversies," only to then include companies like Facebook (FB) or Amazon (AMZN) in their portfolios. (Facebook has blundered its way through privacy scandal after privacy scandal, while Amazon's record on labor rights is atrocious.)

The Change Finance U.S. Large Cap Fossil Fuel Free ETF (CHGX) isn't one of those funds. It's probably one of, if not the, most stringent ESG ETFs left on the market—an ETF made by true ESG believers, for true ESG believers.

CHGX is one of the few ESG U.S. equity ETFs where you won't find Tesla (TSLA), for example, nor Facebook, Amazon, Exxon (XOM), McDonalds (MCD) or Uber (UBER)—or any other company that has had significant labor, privacy or environmental controversies in its recent past.

That's because, unlike some ESG ETFs that try to simply limit, rather than eliminate, their exposure to certain objectionable themes, CHGX puts its money where its proverbial mouth is and divests entirely from problematic stocks and sectors.

Take its approach to fossil fuels. Not only does CHGX exclude oil and gas producers—as do many other ESG ETFs do—but it also excludes coal miners, oil and gas refiners and processors and utilities that burn fossil fuels. Compare that to the SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX), which only excludes companies that have fossil fuel reserves on hand; or the ProShares S&P 500 Ex-Energy ETF (SPXE), which cuts out the entire energy sector but leaves in fossil fuel-consuming utilities (and everything else).

CHGX does tremendous legwork to ensure it isn't investing in companies whose business practices it defines as objectionable, without wildly impacting the overall sector break-down of its portfolio. For example, sector-wise the fund stays surprisingly close to the SPDR S&P 500 ETF Trust (SPY), for example:

It's not an exact match, for sure. But with as many exclusions as CHGX makes, you'd expect its sector line-up to be more divergent than the broader market than it actually is, making CHGX a potential ESG "replacement" option for U.S. large cap exposure.

For Truly Unique Fixed Income Diversification: SPSK

Religious-based ETFs are not new, but until recently, most iterations on the theme have been Christian in nature.

Over the past few months, however, several Islam-based ETFs have launched, including the Wahed FTSE USA Shariah ETF (HLAL), the SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS), and the SP Funds Dow Jones Global Sukuk ETF (SPSK).

SPSK in particular is striking because it's a fixed income fund, and that may seem a contradiction in terms, as Shariah (the religious law underpinning Islam) prohibits the collection of interest on debt. As a result, Muslims aren't allowed to invest in the vast majority of bonds—which are debt instruments that make regular interest payments to their holders.

SPSK meets this challenge by instead investing in sukuks, which are Shariah-compliant financial certificates that grant holders partial ownership in an underlying asset.

Like bonds, sukuks still make regular payments to investors, but those payments aren't interest-based. They derive from the earnings the underlying asset generates—essentially, making sukuks profit-sharing arrangements.

Sukuks are a mainstay of Islamic finance, but they can be difficult for U.S.-based investors to access, as few i(f any) Western-based fixed income ETFs currently offer exposure to them and individual sukuks typically trade in over-the-counter transactions. So SPSK really is offering first-of-its-kind exposure to the market.

Plus, with performance that tends to look nothing like that of the bond market and exposure to Middle East and North African countries not typically covered by bond indexes, SPSK also offers real diversification to a fixed income portfolio—something that earned it the ETF.com award for the best new international fixed income ETF of 2019.

Is there an ESG ETF that you feel hasn't gotten enough attention? Write to us about your favorites at [e-mail].

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>>> Earth-First Funds Are Soaring


Yahoo Finance

Nellie S. Huang

February 24, 2021


https://finance.yahoo.com/news/earth-first-funds-soaring-163107882.html


Green stocks weren’t the only investments that had a scorching year. Funds that invest with sustainability in mind sizzled, too. Some posted triple-digit returns over the past 12 months. Investors followed the money and poured more than $50 billion in 2020 into sustainable funds—mutual funds and exchange-traded funds that have a sustainability objective or that use environmental, social and governance measures as binding criteria for picking securities. That’s more than double the record set in 2019. And it represents 24% of overall inflows into U.S. stock and bond funds for the year.

In other words, sustainable investing hasn’t just arrived; it’s taking over. Though in 2020 investors pulled more money from U.S. stock funds than they put in, those outflows were offset by inflows into sustainable funds. “Investors pulled money from U.S. equity, sector-equity, international-equity and allocation funds in 2020, but added money to sustainable funds in each of those category groups,” says Jon Hale, head of sustainability research at Morningstar.

And green funds, which emphasize climate, environmental and renewable-energy themes, were among the most popular choices. Four of the top 10 sustainable funds with the biggest inflows in 2020 were focused on renewable energy. “Some of this is, unfortunately, performance-chasing,” says Jon Hale, head of sustainability research at Morningstar. “But with the new administration emphasizing climate change and the transition to a net-zero economy,” he adds (referring to President Biden’s goal for the country to balance the amount of greenhouse gas produced and the amount removed from the atmosphere by 2050), “I expect investor interest in these funds to continue.”

To find the best offerings in this area, we sifted for funds with a stated environmental focus, as well as for ESG portfolios with the best (lowest) scores for environmental risk, according to Morningstar. Of the ETFs listed below, one is actively managed, and three track custom-designed indexes. Only one mutual fund met our screening criteria. Returns and data are through February 5.

Change Finance U.S. Large Cap Fossil Free ETF (symbol CHGX, expense ratio 0.49%) This fund proves that exclusion screens—barring certain types of companies from a portfolio—can work. Change Finance U.S. Large Cap Fossil Free ETF wins top environmental ratings from Morningstar and delivers good returns, too.

The list of companies the ETF excludes is long. Among others, oil, gas, coal and tobacco companies are out, as are businesses that produce, process or burn fossil fuels and firms that produce nuclear power. Companies with a history of discrimination, violating human rights or labor laws, or committing business malpractice get the boot, too. But most important, firms that flunk certain environmental standards related to pollution, land use, the health impacts of products and the management of hazardous substances are not allowed in the fund.

The end result, according to the fund’s website, is a portfolio with a total carbon footprint that’s 86% smaller than that of the S&P 500. Tesla, Eli Lilly, Snap, Walgreens Boots Alliance and Capital One Financial were the fund’s top five holdings at last report.

The fund’s track record impresses, too. Over the past three years, it has gained 18.0%, beating 97% of its peers (funds that invest in large companies with a blend of value and growth characteristics) and the S&P 500.

ETHO Climate Leadership US ETF (ETHO, 0.45%) As its name suggests, this ETF makes the environment a priority. But a firm’s standing on social and governance criteria gets consideration, too.

Etho Capital, the firm behind the fund, uses a stock-picking system developed by Ian Monroe, a Stanford University environmental science lecturer, to build an index of companies that sport the smallest carbon footprints in their industry. The fund’s four managers assess each business, from its operations to its suppliers and customers, to “find the most climate-efficient companies,” says Monroe, who is also Etho’s chief investment officer. The end result is an index that’s diversified among industries as well as small and large companies.

That’s by design: The fund is meant to be a core holding. Companies are equally weighted—each of the 268 constituents gets an equal share of fund assets—and the fund is rebalanced once a year, in April. At last report, its biggest positions were solar-energy company SunPower; Tesla; and Wesco International, a global electrical distribution and services company. “By investing in the most climate-efficient companies in a wide range of industries,” says Monroe, “you’re investing in companies that are more efficient with operations, and you will do better compared to peers.”

Indeed, Etho Climate Leadership outpaced the S&P 500 in every calendar year since the start of 2016 except one (in 2018, it lagged the broad index by 0.1 percentage point).

First Trust EIP Carbon Impact ETF (ECLN, 0.96%) The staid utility sector is undergoing a shift to renewable energy that could boost sales and earnings. First Trust EIP Carbon Impact ETF, an actively managed fund, offers investors a way to capitalize on that change.

Electric utilities’ shift from coal generation to cleaner forms of energy has helped to lower greenhouse gas emissions in recent years, says James Murchie, fund comanager and chief executive of Energy Income Partners, the fund’s subadviser. It saves the utilities money, too, because it costs less to deliver energy derived from renewable sources than energy produced from coal. Murchie and two comanagers look for companies that actively reduce or help to reduce greenhouse gas emissions in the way they produce, store or convert energy.

Utilities and energy firms make up most of the portfolio. NextEra Energy, a utility with big stakes in renewable energy derived from wind, solar and nuclear power (and one of our Green Stock picks), is its top holding. The ETF has only been around since August 2019. But it has returned an annualized 12.0% since then, outpacing the 6.1% average for utilities funds, with less volatility. It yields 2.01%.

Invesco WilderHill Clean Energy ETF (PBW, 0.70%) It may look as if we’re chasing returns by picking WilderHill Clean Energy, which is up 237% over the past 12 months. But we had already added the fund to the Kiplinger ETF 20, the list of our favorite ETFs, last year.

Investors embraced alternative-energy stocks big-time in 2020, and that’s WilderHill’s focus. It tracks an index of companies that focus on green and renewable energy sources (wind, solar, hydro, geothermal and biofuel), as well as companies involved in energy storage, clean energy conversion, power delivery and conservation.

Given the strong green rally, some stocks in the fund have posted huge returns. At least seven of the fund’s 56 holdings climbed more than 1,000% in price over the past year, including FuelCell Energy. But volatility works both ways, and the ride with this fund can get bumpy. Since inception, the ETF has been more than twice as volatile as the S&P 500 as measured by standard deviation.

iShares MSCI ACWI Low Carbon Target ETF (CRBN, 0.20%) Resolute green investors in search of a globally diversified fund to serve as a portfolio mainstay should consider iShares MSCI ACWI Low Carbon Target ETF.

The fund holds large and midsize U.S. and foreign stocks in all sectors. Companies with low greenhouse gas emissions relative to sales get a bigger slice of the fund’s assets. (In the traditional MSCI ACWI index, stocks are weighted by market value.) Tech, financial services and consumer-oriented stocks figure prominently; energy and utilities stocks do not. Apple, Microsoft and Amazon.com are top holdings. Foreign stocks make up 46% of assets.

This ETF has beaten the MSCI ACWI index in seven of the past 10 calendar years. It yields 1.46%.

Putting the E in ESG first

There are plenty of choices for mutual funds that invest in companies that score well on environmental, social and governance measures overall. But singling out funds that put the environment first narrows the field considerably.

Fidelity Select Environment and Alternative Energy Portfolio (symbol FSLEX, expense ratio 0.85%), however, is worth considering. The fund offers a diversified approach to companies that are tackling climate change. It holds stocks in every sector—mostly in companies with at least one-fourth of revenue tied to one of a smorgasbord of environmentally friendly pursuits, including increasing fuel efficiency, generating renewable energy, building water infrastructure and recycling. Prospective stocks must score well on social and governance measures, too.

Honeywell, an industrial conglomerate that is a top holding in the fund, works with building owners to install more energy-efficient systems. Electrical connector supplier TE Connectivity makes key components for electric vehicles. And 3M is a big supplier to solar and wind companies. “3M products go into almost every renewable energy you can think of, but you won’t see 3M’s name on the side of a wind turbine,” says manager Kevin Walenta. Tesla is the fund’s biggest holding.

The fund lagged the S&P 500 over the past three years, but with a 27.2% return, it walloped the broad-market benchmark over the past 12 months.

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>>> Eaton Corporation plc (ETN) operates as a power management company worldwide. Its Electrical Products segment offers electrical and industrial components, wiring devices, and structural support systems; and residential, single phase power quality, emergency lighting and fire detection, and circuit protection and lighting products. The company's Electrical Systems and Services segment provides power distribution and assemblies, three phase power quality products, hazardous duty electrical equipment, explosion-proof instrumentation, utility power distribution equipment, power reliability equipment, and services. Its Hydraulics segment offers power, controls and sensing, and fluid conveyance products; and filtration systems solutions, industrial drum and disc brakes, and golf grips. The company's Aerospace segment provides hydraulic power generation and fuel systems, controls and sensing, and fluid and conveyance products for commercial and military use. Its Vehicle segment offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, cylinder heads, locking and limited slip differentials, transmission controls, and fuel vapor components for vehicle industry. The company's eMobility segment provides voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution products, fuel tank isolation valves, and commercial vehicle hybrid systems. It serves industrial, institutional, governmental, utility, commercial, residential, information technology, renewable energy, marine, agriculture, oil and gas, construction, mining, forestry, material handling, truck and bus, machine tools, molding, primary metals, and power generation markets, as well as original equipment manufacturers and aftermarket customers. The company was founded in 1916 and is based in Dublin, Ireland.

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>>> Accenture beats revenue estimates on digital push, shares rise


Reuters

June 25, 2020


https://finance.yahoo.com/news/accenture-narrows-fy-revenue-growth-112549599.html


(Reuters) - IT consulting firm Accenture Plc beat analysts' estimates for third-quarter revenue and profit on Thursday and forecast strong bookings for the current quarter, sending its shares up about 8%.

The company has shifted its focus to offering digital and cloud services, which include managing clients’ social media marketing strategies and helping them move to cloud, in a bid to boost margins.

New bookings grew 4% to $11 billion in the third quarter ended May 31, with digital, cloud and security-related services accounting for about 70% of them, Chief Financial Officer Kathleen McClure said in an earnings call with analysts.

Revenue slipped nearly 1% to $10.99 billion but managed to edge past analysts' average estimates of $10.87 billion, according to IBES data from Refinitiv.

Excluding items, the company earned $1.90 per share, beating analysts' estimates of $1.85 per share.

The online consulting and service provider, however, narrowed its fiscal 2020 revenue growth forecast to between 3.5% and 4.5% amid the coronavirus-fueled economic slump. The prior forecast was for a growth of 3% to 6%.

Accenture, which competes with Cognizant and major Indian IT companies such as Tata Consultancy Services and Wipro, expects foreign exchange rates to negatively impact its full-year results by 1.5% compared to fiscal year 2019.

Shares of the company were up at $217.19 in morning trade on Thursday.

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>>> Aptiv PLC (APTV) designs, manufacturers, and sells vehicle components worldwide. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segment, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle's electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. The Advanced Safety and User Experience segment provides critical components, systems integration, and software development for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, and autonomous driving technologies. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC is headquartered in Dublin, Ireland.

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>>> Kerry Group plc (KYGA), together with its subsidiaries, develops, manufactures, and delivers technology based taste and nutrition solutions for the food, beverage, and pharmaceutical industries in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates in two segments, Taste & Nutrition and Consumer Foods. The Taste & Nutrition segment manufactures and distributes a portfolio of functional ingredients and actives; and offers taste and nutrition technologies, systems, and solutions. The Consumer Foods segment manufactures and supplies added value branded and consumer branded chilled food products primarily to the Irish, the United Kingdom, and international markets. This segment offers meat and savory products, dairy products, and meal solutions for supermarket chains, convenience stores, and independent retailers under the LowLow, Cheestrings, Dairygold, Charleville, Denny, Galtee, Richmond, Wall's, Mattessons, Fridge Raiders, Fire & Smoke, and Yollies brand names. It also produces supermarket private label products, such as chilled and frozen ready meals, cooked meats, and cheese and dairy products. In addition, the company is involved in the agri business. Kerry Group plc was founded in 1972 and is headquartered in Tralee, Ireland.

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>>> ICON Public Limited Company (ICLR), a clinical research organization, provides outsourced development services to the pharmaceutical, biotechnology, and medical device industries in Ireland, rest of Europe, the United States, and internationally. It specializes in the strategic development, management, and analysis of programs that support various stages of the clinical development process from compound selection to Phase I-IV clinical studies. The company's clinical development services include product development planning, strategic consulting, study protocol preparation, clinical pharmacology, pharmacokinetic and pharmacodynamic analysis, site feasibility, patient recruitment and retention, digital patient and site, project management, clinical operations/monitoring, patient centric monitoring, data management, and adaptive and virtual trial services. Its clinical development services also comprise medical imaging, biostatistics, medical affairs, pharmacovigilance, strategic regulatory, electronic endpoint adjudication, medical writing and publishing, interactive response technologies, functional, strategic resourcing central laboratory, bioanalytical laboratory, biomarket development, strategy and analytics, late phase research, patient centered science, and medical device and diagnostics research services, as well as access, commercialization, and communication services, and research trials for us government agencies. The company was founded in 1990 and is headquartered in Dublin, Ireland.
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>>> STERIS plc (STE) provides infection prevention and other procedural products and services worldwide. It operates in four segments: Healthcare Products, Healthcare Specialty Services, Life Sciences, and Applied Sterilization Technologies. The Healthcare Products segment offers cleaning chemistries and sterility assurance products; accessories for gastrointestinal (GI) procedures, washers, sterilizers, and other pieces of capital equipment for the operation of a sterile processing department; and equipment used directly in the operating room, including surgical tables, lights, equipment management services, and connectivity solutions. It also provides capital equipment installation, maintenance, upgradation, repair, and troubleshooting services. This segment offers its products and services to acute care hospitals, ambulatory surgery centers, and GI clinics. The Healthcare Specialty Services segment provides solutions and managed services, such as instrument and endoscope repair and maintenance solutions; custom process improvement consulting services; and outsourced instrument sterile processing services to acute care hospitals and other healthcare settings. The Life Sciences segment offers formulated cleaning chemistries, barrier products, sterility assurance products, steam and vaporized hydrogen peroxide sterilizers, and washer disinfectors. The Applied Sterilization Technologies segment provides contract sterilization services through a network of approximately 50 contract sterilization and laboratory facilities. The company was founded in 1985 and is based in Dublin, Ireland.

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>>> Accenture plc (ACN) provides consulting, technology, and outsourcing services worldwide. Its Communications, Media & Technology segment provides professional services for clients to accelerate and deliver digital transformation, develop industry-specific solutions, and enhance efficiencies and business results for communications, media, high tech, software, and platform companies. The company's Financial Services segment offers services for profitability pressures, industry consolidation, regulatory changes, and the need to continually adapt to new digital technologies for banking, capital market, and insurance industries. Its Health & Public Service segment provides consulting services and digital solutions to help clients deliver social, economic, and health outcomes for healthcare payers and providers, government departments and agencies, public service organizations, educational institutions, and non-profit organizations. The company's Products segment helps clients enhance their performance in distribution, sales, and marketing; in research and development, and manufacturing; and in business functions, such as finance, human resources, procurement, and supply chain. This segment serves clients in consumer goods, retail, and travel services industries; automotive, freight and logistics, industrial and electrical equipment, consumer durable and heavy equipment, and construction and infrastructure management companies; and pharmaceutical, medical technology, and biotechnology companies. Its Resources segment enables clients in chemicals, energy, forest products, metals and mining, and utilities and related industries to develop and implement strategies, improve operations, manage complex change initiatives, and integrate digital technologies. Accenture plc has alliance relationships with Amazon Web Services, Google, Microsoft, Oracle, Pegasystems, Salesforce, SAP, Workday, TradeIX, and others. Accenture plc was founded in 1989 and is based in Dublin, Ireland. <<<