DORE, BSIF, RNEW: Should you invest in these green finance companies now?

Highlights

• Chancellor Rishi Sunak is being requested to come up with a new generation of green bonds to help the UK reach its net-zero goals.
• The green economy doesn’t only cover renewable energy and clean technologies, but also other sustainable businesses across industries.
• With a market cap of over £148 billion, more than 100 companies and funds are trading on the LSE with a green economy mark. 

The UK aims to become a global leader in sustainability-linked finance and to achieve this goal the Boris Johnson government needs to actively increase its collaboration with the financial services sector. But there is a possibility that the UK may not be able to reach its climate change goals, and thus Chancellor Rishi Sunak is being requested to come up with a new generation of green bonds providing the UK investors with greater returns.

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UK ministers would be incentivised further to reach the carbon-cutting goals due to these sustainability-linked bonds, and this would in turn push the UK to become a hub for green financing, as per the Social Market Foundation (SMF). As per reports, the think tank’s research director believes that the UK’s net-zero goals could be reached by focusing on the financial services sector, and the number of workers in the financial services industry will gradually keep growing over the years.

The green economy doesn’t only cover renewable energy and clean technologies, but also other sustainable businesses across industries. Environmentally conscious investors are exploring the diverse set of options to invest in the green economy by going for LSE-listed stocks with a green economy mark. At least half of the revenue generated by the companies and funds having a green economy mark comes from green products or services.

With a market cap of over £148bn, more than 100 companies and funds are trading on the LSE with a green economy mark.

Let’s look at 3 UK finance companies with LSE’s green economy mark, which investors can keep an eye on. 

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Foresight Solar Fund Limited (LON: FSFL)

Foresight Solar Fund Limited’s shares were up by 3.52% as the market opened around 8:00 AM (GMT+1) on 3 May 2022, at GBX 117.80. The company has offered its shareholders a return of 22.73% over the last one year as of 3 May 2022, while its return on a year-to-date basis stands at 17.16%. The current market cap of the company stands at £649.13 million.

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Bluefield Solar Income Fund Ltd (LON: BSIF)

Bluefield Solar Income Fund Ltd’s shares were up by 0.75% as the market opened around 8:00 AM (GMT+1) on 3 May 2022, at GBX 134.00. The company has offered its shareholders a return of 9.49% over the last one year as of 3 May 2022, while its return on a year-to-date basis stands at 8.36%. The current market cap of the company stands at £659.77 million.

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Downing Renewables & Infrastructure Trust PLC (LON:DORE)

Downing Renewables & Infrastructure Trust PLC’s shares were trading at GBX 110.75 as the market opened at around 8:00 AM (GMT+1) on 3 May 2022. The company has offered its shareholders a return of 16.33% over the last one year as of 3 May 2022, while its return on a year-to-date basis stands at 6.73%. The current market cap of the company stands at £151.74 million.