Investing with a 'climate focus' 10 NZ and Aussie Companies to invest in
If you are looking for some investment opportunities that can also help mitigate climate change, you might want to consider some of the companies that are listed on the New Zealand and Australian stock exchanges. These companies are operating in sectors such as renewable energy, transport, and sustainability, and they are taking steps to reduce their greenhouse gas emissions and adapt to the impacts of a changing climate.
Here are 10 companies that you could invest in if you want to support the fight against climate change:
- Meridian Energy Limited (ASX:MEZ): This is New Zealand's largest electricity generator and retailer, and it produces 100% renewable energy from wind, water, and solar sources. Meridian also supports electric vehicle adoption and invests in green hydrogen projects.
- Contact Energy Limited (ASX:CEN): This is another major electricity generator and retailer in New Zealand, and it has a diversified portfolio of renewable energy sources, including geothermal, hydro, wind, and solar. Contact also aims to achieve net-zero emissions by 2030.
- Infratil Limited (ASX:IFT): This is an infrastructure investment company that owns stakes in renewable energy, transport, data, and social infrastructure assets in New Zealand, Australia, and other countries. Infratil's renewable energy portfolio includes Trustpower, Tilt Renewables, Longroad Energy, and Galileo Green Energy.
- Mercury NZ Limited (ASX:MCY): This is a New Zealand-based electricity generator and retailer that mainly uses hydro and geothermal power plants. Mercury also has a stake in wind farm developer Tilt Renewables and supports electric vehicle uptake through its Mercury Drive service.
- AGL Energy Limited (ASX:AGL): This is Australia's largest electricity generator and retailer, and it has a diverse mix of thermal and renewable energy sources, including coal, gas, wind, solar, hydro, and battery. AGL plans to split into two separate businesses: Accel Energy, which will focus on low-carbon generation and storage; and AGL Australia, which will provide energy solutions and services to customers.
- Spark Infrastructure Group (ASX:SKI): This is an infrastructure investment company that owns stakes in electricity distribution and transmission networks in Australia. Spark also invests in renewable energy generation projects, such as Bomen Solar Farm and East Creek Wind Farm.
- Genex Power Limited (ASX:GNX): This is a renewable energy company that develops and operates hydro, solar, and wind projects in Australia. Genex's flagship project is the Kidston Clean Energy Hub, which combines a large-scale solar farm with a pumped storage hydro plant.
- Smartgroup Corporation Ltd (ASX:SIQ): This is a provider of employee management services in Australia, such as salary packaging, novated leasing, fleet management, and payroll administration. Smartgroup helps its clients reduce their carbon footprint by offering incentives for low-emission vehicles and carbon offset programs.
- Kathmandu Holdings Ltd (ASX:KMD): This is a retailer of outdoor clothing and equipment in Australia, New Zealand, and other countries. Kathmandu owns the brands Kathmandu, Rip Curl, and Oboz. Kathmandu is committed to sustainability and social responsibility by using recycled materials, reducing waste and emissions, supporting conservation initiatives, and ensuring ethical sourcing.
- Xero Limited (ASX:XRO): This is a software company that provides cloud-based accounting solutions for small and medium-sized businesses in New Zealand, Australia, and other countries. Xero helps its customers measure and reduce their environmental impact by providing tools for carbon accounting and reporting.
These are just some examples of companies that are taking action on climate change. Of course, before you invest in any of them, you should do your own research and due diligence. Investing in these companies does not guarantee positive returns or environmental outcomes. You should also consider your own risk appetite, financial goals, and ethical values when making investment decisions. Please free to book in a time to talk with George if you’d like to discuss your options further - click here to book
