I am a new member of this forum, and have been trying to do some research to identify a “green” basis of stock identification. The intent is to identify companies which operate in avenues that will benefit from the growing focus on environmental issues (Which some may debate that this is actually getting lesser focus as “Ease of doing business” drives lesser norms in environmental laws). Despite that, i’d like to hear from other members on this topic.
I have identified the following industries (And done some minor investment for purposes of tracking) in:
Plastic alternatives (like Jute)
Green energy : Hydel and Wind, I cannot find a good solar (or allied component) pick; Hydel and wind do have other environmental repurcusions, solar would be the better bet esp. in India
This is a major interest for me as well. From what I know, sustainability investors are looking for companies in some of the following categories globally:
Companies who have a strong sustainability roadmap which is global and long term: Walmart and Unilever come to mind - even though their products, packaging, etc is nowhere near green as of now.
Companies who are doing triple bottom line accounting where environmental and social impact is also given a preference
Companies who have actual green or alternative products e.g. solar, LEDs (?), jute, organic food etc that you mentioned.
Coming to the Indian markets, apart from the sustainability mantra percolating to MNCs from their HQ, and some preliminary or naam ke waste initiatives (e.g. Godrej’s green building initiative, or sustainability reports of Wipro, etc), I have NOT seen any major thrust on green from any Indian companies.
Yes, companies are trying to be energy efficient and reduce carbon footprint, but I know of no company that does extensive carbon accounting and aggressively tries to reduce it.
I have a fairly green portfolio with these stocks - Suzlon Energy (Wind power), Ujaas Energy (Solar power), VA Tech Wabag (water treatment), Cerebra Integrated Technologies (e-Waste). Picked all of them cheap at the bottom of the curve last year.
Cheviat company. This is a company working in space of Jute. It was known as kanoria jute mill in my childhood days and it was in bad condition in some point of time. But now recovered and cash rich. People can study this company if interested in jute sector. Vijay Kedia has some stake in this stock.
Disc : Not invested. No research in recent past. Please do your due diligence before investing.