IFT, GNE: 2 NZX stocks in focus as businesses respond to climate change

Highlights

• Nearly 35% of the surveyed Kiwi businesses have invested in various measures to lessen the impact of GHG emissions.
• Infratil is a key stakeholder in Vodafone NZ, the latter has announced plans for selling its passive mobile tower assets to reduce environmental impacts.
• Genesis Energy reveals a DRP strike plan, shares under the scheme to be issued on 1 April.

Stats NZ has stated that in a survey conducted across 7000 Kiwi businesses, 35% of them had revealed making several investments, so as to reduce greenhouse gas emissions in the last two years.

Further, larger businesses were seen to invest more as compared to smaller businesses in climate change-related measures, and such investments were generally directed towards new software or digital technologies and improving the efficiency of buildings, cites Stats NZ.

However, those businesses which could not make climate change-related investment measures said a lack of information, requisite skills and personnel, and the absence of viable technology were the main hindrances for taking up such measures.

With this backdrop, let us look at the two NZX-listed stocks which are making considerable investments in renewable energy and other projects.

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Infratil Limited (NZX:IFT; ASX:IFT)

Infratil Limited, apart from operating infrastructure businesses, has considerable investments in the renewable energy business as well. A few days ago, Vodafone New Zealand, wherein Infratil is a key stakeholder with 49.9% interest, had revealed its intentions to sell its passive mobile tower assets.

Do Read: Infratil (NZX:IFT): What are the key highlights of 2022 Investor Day?

The said move has been taken as a part of Vodafone’s growth strategy and ongoing transformation, which would result in improved capital efficiency and reduced environmental impacts.

At the time of writing on 25 March, IFT was rising by 1.36% at NZ$8.180.

Genesis Energy Limited (NZX:GNE; ASX:GNE)

NZ’s leading diversified energy company is Genesis Energy Limited. Thursday, it announced its Dividend Reinvestment Plan, wherein NZ$2.7738 per share will be the issue price for shares, which will be issued in lieu of cash for the Interim Dividend.

Also Read: MCY, GNE, CEN: Energy stocks in news as power bills set to rise

Interested shareholders will receive their shares on 1 April, under the DRP scheme.

Moreover, the Company has allotted green bonds worth NZ$125,000,000, proceeds of which will be directed to finance or refinance renewable energy assets and other such projects.

At the time of writing on 25 March, GNE was trading flat at NZ$2.825.

Bottom Line

NZ businesses are undertaking a range of renewable energy projects to assist their country in its decarbonisation efforts.