Hi all,
I’m looking to invest in a low carbon fund from the UK. So far I’ve only found a hsbc one: £HSUK
I should also say that I am focused on carbon emissions more than ESG as this criteria feels more important to me.
Do you know of UK alternatives?
Buy three companies at attractive valuations which will benefit from a carbon credit based system?
I feel your pain. I don’t like many – if any – of the ETFs in this space. There’s a lot of greenwashing going on: slap an ‘ESG’ badge on something then charge more.
There are nearly 70 ETFs in the ‘climate change’ section on JustETF – most are stuffed with tech and health stocks screened by some broad and subjective criteria.
Like you, I’d rather invest in firms that are laser-focused on tackling the environmental problem at hand.
The clean energy or electric vehicle ETFs may be worth a look. You could also research the investment trusts in the AIC’s renewable energy infrastructure and environmental sectors.
Also feeling your pain here. ESG is completely misnamed - Shell are ESG compliant and it’s probably possible for an arms manufacturer to achieve!
I have stocks like Green Coat Uk, Renewables infrastructure and although not strictly low carbon, L&G Battery Value Chain. The latter includes miners metal producers and car manufacturers which all contribute to a low carbon economy, but probably also add to the problem.
If you know if any funds we can always request them. It would be handy to have a diversified fund I didn’t have to think about too much in this area.
Thanks all, I’m at the start of my journey so I’ve got a lot of research to do on the topic.
I’ve seen some folks talk about ChatGPT in another thread and I thought i’d give it a try for this. It’s a really interesting tool. I started by asking some low carbon stocks, then I asked for a list of 20, then for a description of each company, then their divident yield, and then to put it into a table. Here’s the result, exported with commas (I don’t seem to be able to make a table here):
Stock,Dividend Yield (as of September 2021),Description
DRX,4.3%,A power generation company that has been transforming its business to become a leader in sustainable biomass and carbon capture technologies.
GOOD,0.5%,A renewable energy company that supplies 100% renewable electricity and carbon-neutral gas to homes and businesses in the UK.
UKW,5.1%,A renewable infrastructure company that invests in onshore and offshore wind farms in the UK.
LCE,N/A,An investment company that specializes in renewable energy infrastructure and technologies.
ITM,N/A,A clean energy company that designs and manufactures hydrogen energy systems for energy storage and transportation.
CWR,N/A,A technology company that specializes in fuel cell technology for the clean energy sector.
ORSTED,1.7%,A Danish company with a significant presence in the UK that is one of the world’s largest developers of offshore wind farms.
SSE,5.5%,A UK-based energy company that has been shifting its focus towards renewable energy including wind and hydroelectric power.
BBOX,2.5%,A real estate investment trust that focuses on large-scale logistics facilities including many that are used for renewable energy storage and distribution.
ORIT,5.1%,An investment trust that owns a diversified portfolio of renewable energy assets including wind solar and hydroelectric power.
GRID,6.2%,A closed-end investment company that invests in energy storage systems and other energy infrastructure.
JLEN,5.8%,A renewable energy investment company that owns and operates a diversified portfolio of renewable energy assets including wind solar and biomass.
NESF,6.4%,An investment trust that owns a portfolio of solar power assets in the UK Italy and Spain.
JLEN,4.8%,An investment company that owns and operates a diversified portfolio of renewable energy assets including wind solar and anaerobic digestion.
TRIG,5.2%,An investment trust that owns a diversified portfolio of renewable energy assets including wind solar and hydroelectric power.
BSIF,6.0%,An investment trust that owns a portfolio of solar power assets in the UK.
FSFL,4.7%,An investment trust that owns a portfolio of solar power assets in the UK and other countries.
ABD,N/A,A crowdfunding platform that allows individuals to invest in renewable energy projects in the UK.
PZC,1.9%,A consumer goods company that has been implementing sustainable practices throughout its operations and supply chain.
PNN,4.1%,A utility company that operates in the water and waste management sectors and has been investing in renewable energy projects including wind and solar power.
I can’t guarantee any of this information is accurate, but it’s an fun way to start the journey.
Excellent post thanks Vicomte and I will be looking into some of those that I haven’t heard of. I currently already invest in some of them - UKW; NESF; FSFL. I did invest in TRIG and JLEN previously but I divested myself of them only because I want to make sure not to have overly many individual holdings.
P.S. I think you’ve added JLEN twice just FYI.
There are plenty of options.
Few of them are ETFs.
I’ve got
£TRIG £JLEN £DORE (not yet available on here) £GSF and £UKW.
I also have £NESF but considering selling it to buy more $USF.
Also $ECAR is an ETF in the electric car space. It provides a catch all alternative to holding individual EV company stocks
All assets listed are UK listed assets even though some are priced in USD.
On a side note I don’t quite get why a UK asset is priced in American Dollars. I’m curious as to why that might be.