Stocks to cover Climate change impact – A look at Bingo, Telstra

  • Feb 12, 2020 AEDT
  • Team Kalkine
Stocks to cover Climate change impact – A look at Bingo, Telstra

It has been years and decades, and the issue of climate change has been a hot-selling one throughout. Groups of countries, as well as individual ones, have been placing an increased emphasis on the adoption of sustainable development.

Although climate change is seen as a natural phenomenon, yet human beings have continuously interfered and amplified the repercussions of the same. A significant part of the amplifying effect of climate change is shared by the businesses across the world, causing alterations in the ecosystem.

This has led to strict norms by the authorities and adherence of the same by the businesses. Some businesses have induced the strategy of sustainable development in the business run by them and have developed products and services that help in reducing the impact on climate change.

Moreover, there has been a shift in the positioning and overall strategy of the businesses to develop a competitive advantage over other businesses and gain attention from untapped market segments where customers prefer to buy products that are sustainable, reusable, recyclable etc.

The recent event of bushfires that have taken place earlier as well in Australia is a good example of the implications of climate change. The bushfires have had a huge impact on Australian life as well as markets. The ASX could feel the heat from the decreasing consumer sentiments in the Australian economy.

Events like bushfires that happen due to climate change create pressure on the authorities to device and reinforce better laws to minimise climate change impact. These laws further increase the burden on the business and stocks in the market.

Investment in the fossil fuel industry stocks can be a risky choice for the investors in current times when companies are making a shift towards sustainable alternatives and governments are becoming increasingly conscious towards reducing the impact of climate change.

We shall now discuss some stocks that can help the investors to cover climate change impact through their strategic enhancement.

Waste management company, Bingo Industries Limited (ASX: BIN) is a fully integrated recycling and resource management company that provides solutions across the entire waste management supply chain that engages in ensuring minimum resource wastage to become waste-free.

Bingo recognises climate change as one of the major challenges that is currently faced by the world, while exhibiting severe types of risks. Bingo is dedicated to and extends its assistance to work with the governments internationally to restrict the average global temperature rise to not more than 2?c above pre-industrial levels.

Being a leading recycling and waste management company, Bingo recognises its responsibility and endorses transparent reporting and engagement with its stakeholders on climate change-related risks and opportunities.

The Company’s Sustainability Report for 2018/2019 financial year highlights the following:

  • BIN voluntarily audited its recovery rates through an objective third party for the third year in a row,
  • Achieved an average recovery rate of 77%, which is higher than the goal of 75%,
  • Eastern Creek facility achieving an astounding 85% recovery rate.

Till now, BINGO has taken the following steps in response to the climate crisis:

  • Installed solar panels at our Auburn facility and head office
  • Sponsored National Recycling Week
  • Investigated fuel consumption across our truck fleet
  • Investigated indirect emission use through the electricity supply

The report further mentioned that the Company achieved an incredible $13.4 million in revenue through the sale of recovered and repurposed products.

On 12 February 2020, BIN stock last traded at a price of $3.050, up 4.452% intraday, with a market capitalisation of $ 1.91 billion.

During the last three months, the stock has delivered 15.42% returns till 111 February 2020.

Another company Telstra Corporation Limited (ASX:TLS), Australia’s leading telecommunications and technology company, accredits its success to the sustainability strategy developed by it. The Company is a proud supporter of the United Nations Sustainable Development Goals (SDGs) and maintains its progress against its SDG commitments.

The Company’s Bigger Picture 2019 Sustainability Report presents the following highlights:

  • 67% sustainable engagement score achieved;
  • 40% reduction in its emissions intensity from a baseline year of FY17;
  • 20 simplified plans in-market, replacing 1,800;
  • 2,986 tonnes of e-waste collected with a recycling rate of 99.97%, and
  • $110.3 million of value through its social and community investment programs.

Telstra acknowledges that business has an important role to play in addressing issues like global warming and the environmental, economic and social impacts of climate change can be minimised by working in partnership with governments and the wider community.

Three areas of focus for Telstra to respond to climate change are as follows:

  • Minimising emissions
  • Building resilience
  • Helping to enable low-carbon economic growth

Telstra’s biggest environmental impact continues to be the carbon emissions associated with the energy used in its network and faces the challenge of managing and minimising their carbon emissions and become even more efficient, while being mindful of customer demand for data-intensive products and services.

Telstra believes that there exists a need for a robust and risk-based approach in order to manage the physical impact of climate change which can damage the Company’s infrastructure and operations with increased frequency and severity.

Since Telstra is a well-placed technology company, it still has the opportunity of capitalising upon disruptive technologies like blockchain, internet of things, artificial intelligence, cloud computing etc.

Technology is said to facilitate low carbon emissions and energy-related costs while also enabling the businesses to unlock smarter and more efficient ways of working. Telstra looks forward to providing the same to its customers with similar technology for low carbon emissions.

Being recognised as an absolute leader in telecommunications technology, the Company has been one of the first to launch 5G internationally.

Moreover, being a market leader increases the responsibility for Telstra to optimise its operations and adapt to sustainable options of operations and growth.

In an attempt towards reducing its carbon footprints and building a more resilient future, Telstra looks forward to engaging with the governments for policy settings.

On 12 February 2020, TLS stock last traded at a price of $3.820, down by 1.799% intraday, with a market capitalisation of $46.26 billion.


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