Green & Ethical Investment News and Suggestions

Martyn1981

Article here setting out the idea behind green investments, referencing some, and also pointing out the potential risks of unsecured investments, especially those abroad.

From solar power in Africa to UK tomatoes – the eco-schemes to turn your cash green

Environmentally conscious consumers fed up with low savings rates are being targeted by a variety of green investments paying up to 8% interest a year.

However, those thinking about signing up need to be prepared to accept some risk to their cash. This is a lot riskier than a bank or building society savings account.

The investments include a scheme that allows people to put money into companies providing African families with access to clean, affordable solar energy, and one involving a company that has found a way to grow “greener” tomatoes in the UK.

JKenH

Foresight Solar basks in the sun as higher energy prices repair pandemic crash

Foresight Solar (FSFL) shares have jumped more than 4% after the high-yielding renewables energy fund surprised investors with a better-than-expected 8.5% total return in the second quarter, boosted by a rise in short-term energy prices.

Shares in the £608m Jersey investment company leapt 4.4p to 104.4p after revealing the underlying net asset value (NAV) of its solar parks and battery storage assets had risen from 91.p to 98p per share in the three months to 30 June. This reduced its share price premium to about 6.5% from 10%.

https://citywire.co.uk/investment-trust-insider/news/foresight-solar-basks-in-the-sun-as-higher-energy-prices-repair-pandemic-crash/a1537543

Coastalwatch

For those of us with an interest in supporting renewable energy generation aligned to community involvement then I add news of such a scheme below promoted under the umbrella of Energy4All. The maximum raise is set at £1.88m which is already approaching the halfway mark. The projected return is 4% over a twenty year period with the offer set to close on 30th September. Not a recommendation, just notification of it's existance. 

Share Offer

The LEG Power share offer is now open.  The purpose of this offer is to fund the construction and operation of the hydroscheme on the Abhainn Ghreadain burn in Glenachulish.  Full details about the scheme including the location of the site can be found by viewing the share offer document.

Lochaber Environmental Group (‘LEG’), a local charity, has been developing the Hydro Project to date, having purchased the rights in the Hydro Project from Green Highland Renewables (‘GHR’), the original developer. The Hydro Project has planning consent, Feed-in Tariff pre accreditation, a lease from FLS, a licence to abstract water for the purposes of the Hydro Plant (granted by the Scottish Environment Protection Agency) and a contract with Scottish Hydro Electric Power Distribution Plc (“SHEPD”), the local grid operator, entitling the Hydro Project to connect to the local electricity distribution network.

https://legpower.coop/share-offer/

Coastalwatch

The insight below from Hargreaves Lansdown shows a significant percentage of new funds launched today being directed responsibly, with sustainability a priority and with Millenials showing an even greater interest that any generation before then this looks set grow in the years ahead.

Not that we shoud be surprised as who, with an ounce of common sense, would seek to do otherwise!

Responsible Investment sector review – could investor demand keep rising?

The Responsible Investment space is growing rapidly. More and more investors want to invest in a way that matches their morals, and dozens of new funds are being launched to cater for the demand. In June alone, Responsible Investment funds attracted £1.2bn – that’s over a quarter of all the money invested in funds during the month.

We don’t see this trend ending anytime soon. Investing responsibly could be more important than ever.

Governments and companies alike are searching for ways to reduce carbon emissions and have less negative impact on the environment and society. Those left behind could face a media backlash, regulatory issues or even a customer boycott. Ultimately this could impact their prospects, and their share prices.

There’s a demographic tailwind too. Millennials (those born between 1981 and 1996) are more interested in sustainability than any generation before them. As their wealth increases over time, they have the potential to reward sustainable companies while punishing those that fall short of what's expected.

https://www.hl.co.uk/news/articles/responsible-investment-sector-review-could-investor-demand-keep-rising?cid=halDM214759&bid=771571590&e_cti=3869081&e_ct=T&utm_source=AdobeCampaign&utm_medium=email&utm_campaign=EOA45_ResponsibleSectorReview_02.09.21&theSource=EOA45&Override=1

JKenH

Coastalwatch said:

The insight below from Hargreaves Lansdown shows a significant percentage of new funds launched today being directed responsibly, with sustainability a priority and with Millenials showing an even greater interest that any generation before then this looks set grow in the years ahead.

Not that we shoud be surprised as who, with an ounce of common sense, would seek to do otherwise!

Responsible Investment sector review – could investor demand keep rising?

The Responsible Investment space is growing rapidly. More and more investors want to invest in a way that matches their morals, and dozens of new funds are being launched to cater for the demand. In June alone, Responsible Investment funds attracted £1.2bn – that’s over a quarter of all the money invested in funds during the month.

We don’t see this trend ending anytime soon. Investing responsibly could be more important than ever.

Governments and companies alike are searching for ways to reduce carbon emissions and have less negative impact on the environment and society. Those left behind could face a media backlash, regulatory issues or even a customer boycott. Ultimately this could impact their prospects, and their share prices.

There’s a demographic tailwind too. Millennials (those born between 1981 and 1996) are more interested in sustainability than any generation before them. As their wealth increases over time, they have the potential to reward sustainable companies while punishing those that fall short of what's expected.

https://www.hl.co.uk/news/articles/responsible-investment-sector-review-could-investor-demand-keep-rising?cid=halDM214759&bid=771571590&e_cti=3869081&e_ct=T&utm_source=AdobeCampaign&utm_medium=email&utm_campaign=EOA45_ResponsibleSectorReview_02.09.21&theSource=EOA45&Override=1

Beware of green washing by fund managers. If you want to invest ethically then do your homework.

Third of low-carbon funds invest in oil and gas stocks

https://www.ft.com/content/cd819461-1925-48e0-86af-e81a56c0d3f8

Investors in EU sustainable funds may end up with oil, mining or tobacco stocks

https://www.cityam.com/investors-in-eu-sustainable-funds-may-end-up-with-oil-mining-or-tobacco-stocks/

Coastalwatch

Coastalwatch said:

Back in 2018 Gresham House formed their Energy Storage section with a finance raise in the November on the LSE. They were projecting a 4.5% return in the first year and 7% annually thereafter. Outside of crowdfunding platforms it was a first and scary investment into the stockmarket for us. They struggled to raise the entire amount on that occasion but had sufficient funding to start their portfolio of Battery Storage installations which has grown considerably since.

They have delivered on the their promise of annual dividend returns which is probably why their last raise of £100m, to grow further, was oversubscribed!

The £1 shares we originally purchased are now quoted at £1.175 on the LSM and this coupled with dividend returns to date of 15% have not only made for a healthy return but more importantly demonstrates there are secure investment opportunities during transition away from reliance on FF's.

Update on that post from 18th July, the LSM now lists the above shares at £1.23. With the fund focussed entirely upon battery storage facilities supporting the national grid and showing such impressive returns then the likelyhood of them diverting any finances into less sustainable areas would appear remote indeed.
But of course I could be wrong and funds can go down as well as up and historical performance is no guarantee of likely future returns. So who knows!

Exiled_Tyke

This may or may not be of interest to some on here! 

https://www.hl.co.uk/shares/ipos-and-new-issues/blackfinch-renewable-european-income-trust?cid=halDM216388&bid=775106229&e_cti=1337168&e_ct=T&utm_source=AdobeCampaign&utm_medium=email&utm_campaign=EIITL_BLACKFINCH_IPO_07.09.21&theSource=EIITL&Override=1#

Exiled_Tyke

Not investment news but a little on Orsted. I was on Walney Island yesterday and in a cafe looking over the beach and towards their massive windfarm. Here they have a room set aside with computers for the locals and information about their investment. It was great to see a bit of the company in the flesh and learn about the 200 turbine farm and the money they put back into the community. 

JKenH

Rising energy prices will hit your wallet – here's how to profit instead

From today’s Telegraph, a mention for one of Coastalwatch’s suggestions.

Mr Gilligan also highlighted Gore Street Energy Storage Fund and Gresham House Energy Storage Fund, two investment trusts that own giant lithium-ion power preserves, and can make money by selling power to the National Grid. 

“They are already capturing some of the excess demand, and are benefiting from stronger trading power,” he said. Shares in the trusts have risen by 13pc and 18pc over the past year.

JKenH

'I blew a £150,000 inheritance in wind farms and fear it's gone for good'

Holders of "mini-bonds" issued by Future Renewables Eco, a wind farm investment company, are braced to lose more than half their investments after it collapsed into administration on Sept 17. 

It owned 10 wind turbines across Britain and was funded by 750 bondholders who ploughed £24m into the company between 2015 and 2017.  

https://www.telegraph.co.uk/money/consumer-affairs/invested-150000-inheritance-wind-farms-fear-gone-good/

This doesn’t mean all wind farm investments are a bad idea but it does show the need to be careful in investing in small companies. My two biggest investment losses have both been in smaller companies where I have seen my entire holding wiped out. 

Just because it is an ethical investment doesn’t guarantee the people running it are ethical.