26 September has been declared as World Environmental Health Day by the International Federation of Environmental Health. Theme for the 2021 World Environmental Health Day is “Prioritizing Environmental Health for healthier communities in global recovery.”
The theme encourages investments that are focused on avoiding environmental degradation and pollution. This is aimed at limiting the emission of greenhouse gases (or GHG) that are known to result in global warming.
According to data from Global Sustainable Investment Review 2020 report, global sustainable investment hit $35.3 trillion in assets under management (AUM) at the beginning of 2020.
The review covers the five major markets — Europe, the United States, Canada, Japan, Australia & New Zealand (or Australasia) — marking an increase of 15% in the past two years (2018-2020) and growth of 55% in the past four years (2016-2020).
Notably, the US recorded the highest share of 48% of global sustainable and responsible investments (SRI) assets, at the start of 2020, rising from 39% in 2018.
The U.S. President, Mr. Joe Biden is keenly focused on developing a modern and sustainable infrastructure to create an equitable and clean energy future.
In this direction, an accelerated investment plan of $2 trillion is aimed to deploy the required resources and pave the way for climate progress at a pace which science demands.
Growing popularity of investments pertaining to greener ecosystem brings our focus to five well-known names making their mark in the space:
: Electricity production and transportation are primarily the two of the largest sources of GHG emissions, that make up more than half of total U.S. emissions.
Tesla’s ecosystem, be it solar, batteries and vehicles, is focused on reducing the environmental impacts of electricity production, transportation, and energy utilization.
In 2020, the global fleet of this electric car maker company’s solar panels and vehicles enabled its customers to avoid emission of 5.0 million metric tons of carbon dioxide equivalent.
In second-quarter 2021, the company’s revenues surged 98.1% on a year-over-year basis to $11.96 billion. The company produced and delivered more than 200,000 vehicles.
By 2030, the company aims to sell 20 million electric vehicles on a per year basis (compared to 0.5 million in 2020) and deploy 1,500 GWh of energy storage per year (compared to 3 GWh in 2020).
: Microsoft commits to being carbon negative by 2030 and has been carbon neutral since 2012. The company aims to promote sustainable development practices and reduce carbon footprint globally through cloud-enabled technologies.
The company is also investing $50 million in AI for Earth to boost innovation through deployment of AI in addressing sustainability challenges.
Over the last fiscal year, the tech giant diverted over 60,000 metric tons of waste from landfills. Moreover, 1.3 million metric tons of carbon removal was contracted for in 2020.
Strength in its cloud computing platform, Azure, and other promising offerings including Teams, Dynamics 365, HoloLens, Xbox, among others, are enabling the company bolster revenues.
: NVIDIA GPUs power 26 of the top 30 supercomputers on the Green500 list, with NVIDIA DGX SuperPOD clinching the top spot. The company aims to generate 65% of its global energy use from renewable sources by 2025.
Markedly, the company’s GPUs are 42X more energy efficient than traditional CPU servers makes them ideal to handle challenging AI workloads.
In second quarter of fiscal 2022, total revenues surged 68% year over year to $6.51 billion. Momentum in demand for Data Center for NVIDIA computing and Ampere architecture product cycle for Gaming, hold promise.
Waste Management (WM)
: The company has been reducing its fleet’s GHG emissions by shift to cleaner-burning natural gas from diesel, which is increasingly being generated from renewable natural gas (RNG). The company enjoys a competitive advantage thanks to its sustainability leadership. The company harnesses energy from its landfills to produce electricity and RNG.
According to the company’s ESG report as of November 2020, Waste Management has trimmed fleet emissions by 36% compared to a 2010 baseline, to date. The company aims to reduce fleet emissions by 45% by 2038 compared to a 2010 baseline.
Moreover, Waste Management’s top line is gaining from acquisition synergies. The company has revised its outlook, guiding higher revenue growth for 2021, which is now expected to be in the range of 15.5%-16% compared with the prior growth rate of 12.5%-13%.
NextEra Energy (NEE)
: NextEra generates electricity through solar, nuclear, wind, and fossil fuel, such as coal and natural gas facilities.
For 2021-2022, the company aims to bring online an added 3,700 - 4,400 MW of clean, emission-free wind energy. In 2020, the company’s wind energy portfolio expanded by more than 2,300 MW, adding in 13 wind farms in ten states.
Also, NextEra repowered around 1,500 MW of wind energy in 2020, to boost the efficiency of its facilities. The company operates more than 136 wind projects across 19 U.S. states and four Canadian provinces, which offer home-grown energy that is affordable and provide local communities with economic benefits.
The company’s adjusted earnings per share grew by 9% year-over-year basis driven by continued investment in the business, growth in renewables backlog and synergies from acquisitions.
The company aims to reduce its carbon dioxide (CO2) emissions rate by 67% by 2025, from a 2005 baseline. Towards this goal, as of year-end 2020, the company has reduced its CO2 emissions rate by 57%.