Saturday, November 13, 2021

Investing With A Climate Change Focus

COP26 is wrapping up. COP26, or the 26th conference of the parties, have discussed how to tackle climate change.  The goal is to take massive action to reduce the affects of climate change.

Climate change affects our lives in all ways.  Insurance claims from climate change related disasters have caused insurance premiums to increase for majority of the population.  The quality of life for people have been affected all over the world.  Extreme weather events occur at a more frequent rate.

The amount and size of wildfires have increased.  Locations that have experienced drought or less precipitation are at risk of severe wildfires.  Things such as a lightning strike, or a burning cigarette butt can lead to a fire.  This can lead to a wildfire that can increase in size at a quick pace due to very dry conditions.   In North America, we have seen this during the most recent summer.  A small community in British Columbia, Lytton, burned to the ground during a heat dome event.  The day prior to the town burning to the ground, Lytton reached a temperature of 49.6°C.  This is the highest temperature ever recorded in Canada.

Hurricanes have caused more destruction in recent years as they are stronger.  This is due to the warming of the oceans.

Do you want to be part of companies with a renewable energy focus and collect passive income at the same time?

I am going to discuss to investment options that an investor might want to consider on their investing journey.

Investment #1 - Brookfield Renewable Partners

Brookfield Renewable Partners is a pure-play renewable power company that operates across the globe.  Brookfield Renewable Partners are involved in solar, wind, hydro electric, and storage in North America, South America, Europe and Asia.  

A general break down of operations in 2021 are as follows:

  • Hydro  ->  8000 MW in operation and 2600 MW in development
  • Wind   -> 5000 MW in operation and 8600 MW in development
  • Solar   -> 2200 MW in operation  and 17,300 MW in development
Brookfield Renewables owns directly or partially owns around 6000 renewable power generating facilities across the globe.

Brookfield Renewable Partners trades on the Toronto Stock Exchange under the ticker symbols BEP.UN and BEPC.  The company also trades on the NYSE under the symbols BEP and BEPC. 

Brookfield currently pays a $0.30375 USD quarterly dividend.  The companies aims to grow its distribution / dividend by 5% to 9% per year. 

Investment #2 -  Fortis Inc.

Fortis Inc is an electrical utility holding company with it's headquarters located in the Canadian province of Newfoundland and Labrador.  The company has operations in Canada, United States, Central America and the Caribbean.  

The following graphic is from their most 2020 annual report.  

Revenue grew from $3.747 billion in 2011 to $8.935 billion in 2020.  That's a CAGR of 10.14% over the last 10 years. 

Fortis pays a quarterly dividend of $0.535 CAD and has increased the dividend for 48 consecutive years. This is the second longest streak in Canada. The most recent dividend increase was 5.94% and was announced in September 2021.  The company has a goal to grow the dividend annually 6% through 2025. 

The stock trades on the Toronto Stock Exchange and New York Stock Exchange under the ticker symbol FTS.

Investment # 3  Emera Inc.

Emera is an energy and services company that operates through its various subsidiaries.  Emera delivers energy to its customers in Canada, United States and the Caribbean. 

From Emera's 2020 annual report, the following graphic indicates part of their climate commitment.

Click to Enlarge

The company grew revenue from $2.064 billion in 2011 to $5.506 billion in 2020.  That's a CAGR of 11.52% over the last 10 years.

Emera pays a quarterly dividend of $0.6625 per share.  The most recent dividend increase was 3.92%.  Since 2000, the dividend has grown at a CAGR of approximately 6%.  Emera is targeting growing their dividend annually 4-5% through 2024.

Emera trades on the Toronto Stock Exchange under the ticker symbol EMA.


Brookfield Renewable Partners is in the renewable energy space.  Emera and Fortis will be transitioning their operations to a more renewable focus in the coming years.  

I own all 3 stocks which include both BEP.UN and BEPC.  I started to accumulate shares in Emera in 2011 and never sold any shares. 

These 3 companies allow people to live their day to day lives.  

Disclosure:  Long EMA, FTS, BEP.UN, BEPC


I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.

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