An analysis of recent earnings calls reveals that environmental investments remained a strong topic in the news. Specifically, we explore manufacturing and supply chain activity from energy giants Iberdrola and Enel as well as Air Canada making an investment in a carbon capture solution.
During this earnings call season, environmental investments were a prominent theme on our ESG Safeguard platform. That has continued in recent weeks with several key topics featuring prominently from company news.
Last week at its Capital Markets Day, Iberdrola (IBE:ES) outlined plans to invest €47 B Euros into renewable energy by 2025. Iberdrola is currently one of the largest renewable energy providers in the world, and this spend would launch them into their own stratosphere. They estimate a net profit of €5.4 B Euros at the end of this period. Much of this development is slated for their home market in Europe, but they are planning some projects in the Americas as well.
This week, Enel (ENEL:IT) announced that they will be building a solar PV factory in the US. This move is part of a larger shift of renewable energy transition from China to the North American market as a result of environmental legislation passed this past summer. With limitations for subsidies awarded only to materials and vehicles produced with North American supply chains, this is the start of a new era in American manufacturing when it comes to clean technology.
NextEra (NEE:US) announced this week that they would be investing $800 M to expand their renewable energy portfolio through acquisitions. NextEra is one of the largest providers of renewable energy in the U.S. and these acquisitions will bolster their position as a leader in this space.
Air Canada (AC:CA) is investing in carbon capture company Carbon Engineering as part of its goal to reach net zero emissions by 2050. In theor,y the solution would be a device that could be retrofitted onto current aircraft and pull exhaust through a fan that would then filter and capture the Co2 like a vacuum cleaner. If scalable, this novel solution could be a boon for the airline industry which has struggled to reduce emissions.
Overall investments in recent weeks have leaned more towards traditional solar and wind development with huge capital outlays from established players. However, novel technological developments like Air Canada’s carbon capture and storage play show that some of the more exciting developments in the market are only heating up.
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