Chronicle Journal: Finance

America’s $2 Trillion Infrastructure Boom Could Send ESG Stocks Soaring

FN Media Group Presents Oilprice.com Market Commentary

 

London – June 14, 2021 – In the past few years, we’ve seen six ESG megatrends on the rise with trillions of dollars being invested into them, from cloud computing and clean water, to finance, resource efficiency and the mega of ESG megatrends–EVs.    Mentioned in today’s commentary includes:  Enphase Energy, Inc. (NASDAQ: ENPH), NextEra Energy, Inc. (NYSE: NEE), TotalEnergies SE (NYSE: TOT), BlackRock, Inc. (NYSE: BLK), Uber Technologies, Inc. (NYSE: UBER).

 

If 2020 was the year that broke the ESG bank. This year, and next, might see investors start to reap the rewards of Biden’s ultimate “green presidency”. In March, Biden unveiled a $2.3-trillion infrastructure plan. On Earth Day, Biden pledged to half U.S. greenhouse gas emissions by 2030.

 

According to CNBC, Biden’s climate agenda will likely be a “windfall for ESG investors”. Gains investors have made so far this year have been stunning enough …

 

Tesla’s share price is up over $400 in a year. Blink Charging has gone from $1.66 to over $35 in that same time period. Nio surged from $3.60 to $34. Facedrive (FD) shares have more than doubled.


Enphase Energy (ENPH)
gained nearly 600% in 2020 alone. And we’re just getting started. Double the money is set to pour into this sector from the Biden administration. That’s fantastic news for investors who’ve gone green.

 

It looks like Canadian Facedrive (FD,FDVRF), saw the ESG trend before it went mega, and swooped in with a series of acquisitions over the past year designed to leverage the power of tech-driven eco-friendly verticals that could help to reshape the world.

 

They used 2020 to solidify their presence in various initiatives from pioneering EV-focused ride-sharing and food delivery to disruptive EV car subscriptions–across North America. They’re even aiming to be pioneers on the frontlines of the pandemic with proprietary contact tracing technology and wearables that could help get Canadians back to work, safely. With shares surging over 550% in the past year, Facedrive may be getting ready to kick things into overdrive.

 

The Boom Before the Boom: Facedrive Was There First

 

The ESG boom was on even before Biden came to office. Try as it might, the Trump administration could not staunch the inevitable flow of money into ESG. Sustainable investing became the biggest buzzword on Wall Street, and its leader–Black Rock–became the king of the cause.

 

It’s all about money. Lack of sustainability is now a risk that shareholders don’t want to shoulder. Money managers appear to have seen the light of day.  BlackRock, the largest asset manager in the world, plans to have $1.2 trillion in ESG assets within the next 10 years.

 

And it’s estimated that 1/3 of all assets under management in the U.S. are already sustainably invested…That’s potentially $17.1 trillion invested in the companies making giant steps to put people and the planet first.

 

Facedrive (FD,FDVRF) saw the trend before most. It brought electric vehicles to its ridesharing business, in an industry which has been surprisingly bad for rising carbon emissions.

 

With Facedrive, their customers have the choice of hailing a ride from an electric, hybrid, or gas-powered vehicle, all without paying an extra premium for the option.

 

And after they arrive at their final stop, the in-app algorithm calculates the carbon footprint of each journey and a portion of the fare is set aside to plant trees, offsetting part of the carbon footprint from the ride.

 

With the help of next-gen technology and partnerships, they’re making it easier for customers to make more eco-friendly choices. And they’re working with local authorities–not against them–to bolster business.

 

In its biggest move late last year, Facedrive acquired Steer, a subscription-based ride sharing company that offers electric vehicles, from the largest clean energy producer in the United States–giant Exelon.

 

Steer’s ride sharing subscription model, which includes EVs, is aiming to challenge traditional car ownership by making it so easy … so seamless … and so affordable for users to have their own virtual showroom of EVs delivered to their door-step, on-demand.

 

It was the perfect fit for Facedrive, which is already aiming to be a fierce competitor to Uber in certain ridesharing markets. Now, it plans to compete with car dealerships at large in both the U.S. and Canada.

 

But with ESG companies seeing a record year in 2020, the markets are already looking forward to what the rest of this year holds.

 

2021: The Calm Before the ESG Storm

 

ESG funds are still breaking money inflow records, even as markets pause for breath ahead of the big Biden breakout. ESG-focused companies are seeing higher returns, stronger earnings growth and bigger dividends. It’s all about investment performance.

 

That’s why global ESG assets under management (AUM) grew from $6 billion in 2015 to $150 billion in 2020. There looks to be no stopping this march forward. Big money just seems to keep getting bigger.

 

Morgan Stanley has committed to mobilizing $1 trillion by 2030 for sustainable solutions to climate change. And that’s on top of the $1 trillion target some analysts are putting on ESG investments.

 

Armando Senra, head of BlackRock’s iShares America, says ESG funds will have raked in over $21 billion just in Q1 2021–almost the same it pulled in over the entire year in 2019.

 

Senra says ESG could become a $1-trillion category by 2030, noting to CNBC that “we’re just at the very beginning” of what could be a decade-long growth story.  With a new green president at the helm, ESG-focused companies may start reaping some of the benefits for their shareholders, in a big way.

 

We think Facedrive’s business model looks set to benefit from these ESG tailwinds. And it doesn’t hurt that they’ve made strategic alliances and investments in content companies for A-list celebrities like Will Smith and Jada Pinkett Smith… a company founded by Super Bowl-winning quarterback Russell Wilson…

 

In just the last year, Facedrive (FD,FDVRF) has struck important partnerships with all of them… These relationships could help them expand their business into the U.S. and push their eco-friendly mission ahead with apps, apparel, and more. With names like these getting onboard, it’s proving that the ESG boom has gone far beyond just a few people buying electric vehicles.

 

It’s becoming a lifestyle shift that will touch nearly all areas of our economy. Now, they have a relationship with Exelon, too, thanks to their acquisition of Steer, which included a $2-million strategic investment by Exelon’s wholly-owned subsidiary, Exelorate Enterprises, LLC.

 

The ESG Boom Has Arrived

 

Renewable energy providers are some of the top picks for ESG investors, but few have performed as well as Enphase Energy (ENPH). Enphase Energy is a leading global supplier of microinverters and solar panels. They have been at the forefront of solar innovation, bringing new technology to market faster than any other company in the industry. The Enphase IQ 7+ system includes an innovative self-learning algorithm that monitors every module on your roof for performance optimization, ensuring you get more from your installation day after day, year after year. Enphase’s sleek design makes installing their efficient solar solutions easy for homeowners by simplifying wiring and eliminating the need for bulky junction boxes or expensive mounting racks.

 

Despite the tough first half of the year, however, Enphase has remained a favorite on Wall Street. Year-to-date, Enphase has seen its share price rise by leaps and bounds. And it’s only just getting started. As the renewable push kicks into high gear, and with the United States expected to spend over $1.7 trillion on green energy initiatives over the next decade, Enphase might just emerge as one of the biggest winners.

 

NextEra Energy (NEE) is another shining star in the renewable world. They have a wide range of products and services for both residential and commercial customers. One of their key offerings is solar power which has been growing at an exponential rate over the past few years due to global climate change initiatives.

 

NextEra Energy works with many different companies like Apple, Amazon, Nestle Waters North America among others to help them become more sustainable by investing in renewable energy sources as well as helping them reduce their carbon footprint through providing quality products and services that lower utility bills.

 

Not even the supermajors in the oil industry can ignore the ESG demand from investors. They’ve been diversifying their portfolios to hedge their bets in the rapidly changing new reality of energy. And no other oil major takes this more seriously than Total (TOT). Total has led the charge to go green. It is not only aware of the needs that are not being met by a significant portion of the world’s growing population, it is also hyper-aware of the looming climate crisis if changes are not made.

 

As such, Total is not only betting big on renewable energy, it is also doing its part in reducing emissions in its day-to-day activities. Patrick Pouyanné, Chairman and Chief Executive Officer at Total noted, “It’s our job to meet growing energy needs while reducing carbon emissions.”

 

BlackRock (BLK) needs no introduction. It is the world’s largest global investment management corporation, with over $7.4 trillion in assets under management. With clients in over 100 different countries, it is the de facto leader in its field. And just a few years ago, BlackRock underwent a major shift in its investment strategy, prioritizing stocks with high ESG ratings. BlackRock’s focus on technology and sustainability has fueled the new trend in the marketplace, pushing even more investors to consciously consider where they put their money.

 

There’s a reason BlackRock is blowing Wall Street out of the water right now–sustainable investing. The new king of Wall Street recognized the trend well before the competition and bought into the sustainable investing ethos long ago and is now looking to take its sustainable portfolio from $90 billion to more than a trillion dollars.

 

Uber Technologies (UBER) is another way to capitalize on the EV hype. Despite being a bit late to jump on the sustainability train, Uber is finally making some changes in its operations. In late 2019, a scathing report about how much the ride-sharing giant was contributing to emissions emerged, suggesting that Uber and Lyft added as much as 70% more to global emissions than traditional alternatives prompting backlash among environmentalists.

 

In fact, Uber even rolled out a new program to help drivers transition to electric vehicles. The $800 million ‘Green Future’ initiative, with the help of Chevrolet, allows drivers to get a near-$3000 discount on Bolt EV Premiers. Additionally, drivers of low-emission vehicles will also get a small bonus for every ride they complete. They will also get a discount on specific charging platforms to help cut costs during the transition.

 

By. Louise Matthias

 

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Forward-Looking Statements

 

This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements.  Forward looking statements in this publication include that the demand for ride sharing services will grow; that Steer can help change car ownership in favor of subscription services; that new tech deals will be signed by Facedrive and deals signed already will increase company revenues; that Facedrive will achieve its plans for manufacturing and selling Tracescan devices; that Facedrive will be able to expand to the US and globally; that Facedrive will be able to fund its capital requirements in the near term and long term; and that Facedrive will be able to carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information.  Risks that could change or prevent these statements from coming to fruition include that riders are not as attracted to EV rides as expected; that competitors may offer better or cheaper alternatives to the Facedrive businesses; changing governmental laws and policies; the company’s ability to obtain and retain necessary licensing in each geographical area in which it operates; the success of the company’s expansion activities and whether markets justify additional expansion; the ability of the company to attract drivers who have electric vehicles and hybrid cars; and that the products co-branded by Facedrive may not be as merchantable as expected. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

 

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