Stocks

5 Stocks Taking on Climate Change

Here’s a closer look at these leading actions on climate change.

tesla

tesla is on a mission to accelerate the global transition to sustainable energy. has almost single-handedly driven the adoption of electric vehicles. the company is a leader in the sector and produces both luxury vehicles and more affordable cars. it is also developing zero-emission trucks, midsize sport utility vehicles and semis.

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EVs are just one part of Tesla’s sustainable energy ecosystem. The company also manufactures a variety of solar energy and storage products to increase the use of renewable energy. its goal is to make climate technology products more accessible and affordable to more people, helping to accelerate the adoption of clean transportation and energy production. One way it has done this is to bring EV battery production in-house to cut costs.

Tesla delivered almost 1 million EVs in 2021, almost 90% more than the previous year. The company is rapidly scaling up its production, adding new manufacturing capacity in Texas and Germany to complement its factories in California and China. has a bold goal of producing 20 million EVs annually in the next decade as it helps drive the acceleration towards more sustainable transportation.

nextera energy

nextera energy is a world leader in the production of energy from the wind and the sun. it is also a world leader in battery storage. The electric utility company is among the largest in the US. uu. and has a large-scale, competitive energy business that operates clean power generation assets, natural gas pipelines, and electricity transmission lines.

The company’s focus on renewable energy has paid big dividends over the years. nextera has increased its earnings per share at a compound annual rate of 9% over the past decade, three times faster than its rivals. that has helped fuel above-average dividend growth and outperforming total returns.

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nextera energy has a broad portfolio of renewable energy and battery storage development opportunities underway as it continues to lead the decarbonization of the electricity grid. it is also investing in emerging climate technology like green hydrogen, which uses renewable energy to electrolyze water and produce emission-free hydrogen. the fuel has a variety of potential uses in the energy, industry and transport sectors and could help reduce emissions further.

renewable brookfield

brookfield renewable operates one of the largest renewable energy platforms in the world. It owns hydroelectric, wind, solar, and energy storage facilities in North and South America, Europe, and Asia. it primarily sells the power it produces under long-term contracts to users such as utilities and large corporate power buyers.

The company is also a leading developer of renewable energy assets. entered 2022 with 36 gigawatts (GW) of renewable energy development projects, enough to power 7 million homes for a year. That’s a significant portfolio for a company that also started the year with an operating portfolio of 21 GW. Those operating assets currently offset the greenhouse gas emissions equivalent to taking 6 million gasoline vehicles off the road.

Brookfield’s global scale has made it a partner of choice for businesses and governments seeking to achieve their carbon reduction goals. that’s helping fuel above-average earnings growth.

recharging point holdings

chargepoint holdings operates the world’s largest electric vehicle charging network. its network includes 163,000 charging points in north america and europe. It has a 70% share of the fast charging market, seven times more than its closest competitor.

chargepoint sells electric vehicle charging hardware to companies that own the charging sites or stations. it also sells the software to operate this hardware under a software as a service (saas) model. packages it with a service program that includes a comprehensive parts and labor warranty, so its business model generates recurring revenue long after chargepoint installs the hardware.

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Although already a leader in electric vehicle charging, chargepoint sees strong growth in the future. Electric vehicle sales are on track to rise to 9.9% of vehicles sold in the US. uu. and Europe by 2025 and up to 29.2% by 2030 (compared to 2.6% in 2019). That should drive significant investment to continue building charging infrastructure for all the new EVs. With this cumulative investment expected to exceed $60 billion by 2030 and $192 billion by 2040, chargepoint still has plenty of growth ahead of it.

stem

stem operates smart battery storage solutions that help maximize renewable energy. Its Athena software uses advanced artificial intelligence (AI) and machine learning to switch seamlessly between on-site generation, grid power, and battery storage. helps reduce energy costs, stabilize the grid, improve renewable energy intermittency, and reduce carbon emissions.

There is a huge opportunity ahead for battery storage, which is essential for renewable energy applications as the sun doesn’t always shine and the wind doesn’t always blow. Forecasters estimate that battery storage capacity will increase 35-fold by 2030 as renewable energy development accelerates. Longer term, there is a $1.2 trillion revenue opportunity for integrated storage over the next 30 years.

stem is one of the early leaders in helping companies implement smarter battery storage systems. doesn’t do batteries. instead, it sources them from manufacturers to create an integrated hardware and software solution for customers that combines athena with third-party batteries. the model generates revenue on implementation and recurring revenue from the software component for a decade or more. stem has a large and growing portfolio of integrated battery storage installation opportunities that should support strong growth in the coming years.

leading the charge to combat climate change

The dire warnings about the catastrophic impact of climate change are worrying. however, they have prompted governments and other institutions to take more serious steps to mitigate their effects by cutting carbon emissions as quickly as possible.

Several companies have stepped forward to lead the charge towards a more sustainable world. these climate change actions should benefit from continued investment in the sector. that should help make the world a better place in the long run while creating shareholder value in the process.

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