by Overview
In keeping with the clubs current investment theme of thinking green with sustainable companies, the international team researched and analyzed multiple international companies and equities that would fit into this theme. A social trend towards buying from sustainable companies is even more prevalent in other countries, specifically in Europe. Buys in international markets with a focus on sustainable companies will likely benefit the overall return of the club portfolio.
Heineken – Derek Kagen
Fitting with the theme of renewable energy, believe it or not, Heineken may be something great to invest in. Heineken just opened new plants in Brazil in Spain, and Heineken Spain just last week partnered with Spanish renewable giant Iberdrola, guaranteeing the supply of green energy for at least eleven years to the four factories and offices Heineken has there.
The target audience for Heineken is young people, and what the younger generation wants is environmentally friendly products. Not only is Heineken opening new renewable factories, but just this summer the Dutch company launched a pilot project in which it will be the first company to transport cargo on electronically powered barges. On top of this, Heineken has shifted to using electric trucks for last-mile distribution. Maarten Cuijpers, Global Lead of Logistics and Sustainability at Heineken states, “By pioneering the use of electric transport and green warehousing, among other things, we’ve already succeeded in reducing our worldwide logistics footprint by 13% since 2011.”
Heineken has more than just beat the market in terms of stock price as well. Since 2015, the price per share has grown astronomically, a whopping sixty percent. In general, there is a strong upward trend, and with their commitment to sustainability and environmentally-conscious business practices, there appear to be no signs of stopping.
BMW – Reid Marlow
When people think of renewable energies, one of the first advances to come to mind is a shift towards electric or alternative fuel vehicles. Car manufacture BMW has become a fore front in design and production of electric vehicles. The flagship for the electric vehicles is the i8, a hybrid electric “supercar”, which is currently the worlds best selling plug in hybrid sports car. The company already has very ambitious plans for its new electric car lineup.
Harald Kruger, CEO of BMW said
“We are moving up a gear in the transformation towards sustainable mobility, thereby making our company fit for the future: Over the past two years, we have consistently taken numerous decisions that we are now bringing to the roads. By 2021, we will have doubled our sales of electrified vehicles compared with 2019. We will offer 25 electrified vehicles already in 2023 – two years earlier than originally planned. We expect to see a steep growth curve towards 2025: Sales of our electrified vehicles should increase by an average of 30 percent every year.”
An in depth look into the companies financials will be needed to ensure the stability of the company. Over the past month, fear of a recession has hit the auto industry very hard. Most companies are down 5%-10% since trade talks between the U.S. and China have been dwindling down. The increasing cost of raw materials along with a decline in sales will also need to be kept in remind. The international team would mark this stock as buy, if we see a dip in price due to a recession or a correction in the market.