Big money is turning its back on companies that aren’t conforming to one simple idea…
And it’s fueling one of the biggest transfers of capital the world has ever seen.
In fact, within a year, 77% of institutional investors will stop buying into companies that aren’t, in some way, sustainable.
And the new King of Wall Street is leading the charge.
BlackRock, with over $7 trillion in assets under management, says its clients will double their ESG investments in just five years…
Money managers on the Street are saying climate change is their top concern…
And a ‘leading criteria’ when determining where they put their money to work.
Sustainable assets already account for $17.1 trillion…
But there could be as much as $120 trillion up for grabs.
And that’s exactly why sustainable stocks are outperforming the market.
They are the new go-to investment but could be far better than gold. This sector is a safe haven in that the road to sustainability is long. AND it’s not just Big Money’s downside protection against ESG-related risks, many are money-makers.
While Big Money is busy scrambling for somewhere to park this $120 trillion that’s up for grabs, it could be looking for something like Facedrive (TSX.V:FD, OTCMKTS:FDVRF) -a tech-driven, multi-vertical, next-gen company with an ESG-focused portfolio that just pulled off a major coup with the acquisition of Washington, DC-based Steer–a high-end EV subscription service that plans to get even more EVs on the road, and even to upend the way we think about car ownership altogether.
And this isn’t the only vertical that ties Facedrive into a multi-billion-dollar industry …
It’s tied to the $5-trillion global transportation industry, the $9 trillion healthcare industry, the $850-billion airline industry, the $600-billion major league sports industry and the $26-billion food delivery segment …
From the world’s first carbon-offset ride-sharing platform to an electric vehicle subscription service…Facedrive is rethinking the entire concept of car ownership. And ESG investors are loving it.
And its “people and planet first” motto fits in perfectly with the new kings of Wall Street.
From Climate Naysayers to COVID Believers: Money Talks
Today’s institutional investor is looking for the value that only high-tech sustainability, good governance and social impact can deliver.
In 2020, these are the criteria that could make the difference between making money and losing money. Investors have had enough financial loss over scandal. And they’re banking on anyone who’s not paying attention to the climate risking a lot in the end.
COVID has hastened that even more, with PwC noting that “public awareness of ESG-related risks has catapulted climate change and sustainability to the top of the global agenda” and that COVID has brought “the real-life impacts of overlooking ESG factors into the spotlight”.
And that’s why BlackRock CEO Larry Fink says that “awareness is rapidly changing, and I believe we are on the edge of a fundamental reshaping of finance”.
That’s a multi-million-dollar reshaping of finance …
And this is exactly where Facedrive steps up to the plate, and where giants like Uber and Lyft failed. Uber and Lyft disrupted the hundred-year-old taxi dynasty completely, but they ignored the growing sustainability trend. They created more pollution than they displaced, and in terms of governance, they spent most of their time butting heads with local authorities and their own drivers.
Facedrive saw the gaps, and created a roadmap for the ride-hailing future. It was the first to offer riders a choice of EVs and hybrids, and the first to plant trees to offset its carbon footprint. It’s the first carbon-offset offering in this space.
But that was only the beginning:
When you combine the $5 trillion global transportation industry with an energy industry whose renewables sector is growing dramatically, you get one of the most lucrative marriages of industry yet …
Facedrive’s Steer, backed by an Exelon (NASDAQ:EXC) subsidiary, is planning the biggest disruption the private automobile industry has seen in decades.
In its plan to disrupt the auto industry, Steer offers a seamless, hassle-free technology that gives subscribers access to their own virtual garage of low-emissions vehicles and EVs.
For Facedrive (TSX.V:FD, OTCMKTS:FDVRF), the deal includes a $2-million strategic investment by Exelon’s wholly-owned subsidiary, Exelorate Enterprises, LLC.
And so far, it’s catching the massive tailwinds of the EV industry itself, and of the incredible Tesla boom.
YTD Facedrive is up 280%, on big catalysts that were coming fast…
5 Major Acquisitions in 5 Months
Almost every month is a new acquisition or collaboration for Facedrive, and no industry is out of bounds as long as it is driven by tech and in line with the “impact investing” megatrend.
In September, it was Steer–a huge move backed by an energy giant.
In August, it was the star-studded acquisition of Tally Technologies, the high-tech major league sports predicting startup founded by NFL superstar Russel Wilson and funded by Global tech leaders.
Tally Technologies plans to increase the draw of major league sports with “gamification” and online fan engagement. Gamified for ultimate fan engagement, major league sports apps will now be free-to-play and predictive. That means new revenue potential for major leagues sports, which is exactly why Tally has already been chosen by the NFL, NHL, and NBA as a premier tech solution.
And there’s a lot more.
Its evolution is the stuff of high-end celebrities and big money. Tally came out of TraceMe, a celebrity content app founded by Wilson with early-in investors from the biggest tech companies in the world and acquired by Nike last year.
In July, Facedrive stormed another space–the rapidly growing food delivery business that is now being defined by merger mania. Facedrive acquired assets of Foodora Canada—until then a subsidiary of global giant Delivery Hero–along with 5,500 restaurant partnerships and hundreds of thousands of active members. Facedrive Foods now operates out of 19 cities in Canada, with an eye on expansion into the US markets in the near future.
That same month, Facedrive launched TraceScan, the COVID tracking app that positioned itself at the top of this field with state-of-the-art COVID contact-tracing with a huge competitive advantage because it includes wearables. That fact has led to government-level interest where simple smartphone contact-tracing isn’t enough, particularly for the construction industry or medical workers, teachers and the underserved elderly who don’t always have access to their phones and are at high risk of infection. TraceSCAN wearables started shipping on September 10th.
The summer also saw Facedrive launch its own Marketplace, including an exclusive line of clothing co-branded by the company’s partner, Will Smith and his Bel Air Athletics label.
And the name-dropping has just extended to Will Smith, Jada Pinkett Smith and Russell Wilson…
It has also included Amazon itself, and Canadian telecoms giant Telus, both of whom were added to Facedrive’s Corporate Partnership Program in June. Both Amazon and Telus will be getting corporate pricing and services from Facedrive’s carbon-offset rideshare and food delivery platform.
Follow the Money
The biggest names on Wall Street are shifting their capital, in big numbers, and these are the ESG verticals they’re looking for …
Fidelity has called 2020 a “bumper year for sustainable investing”.
Even though ESG is nothing new, COVID helped turn what was a “relatively niche strategy” into “one of the most significant developments on the investment landscape in recent memory”.
Retail investors may be looking at who will recover first once the COVID dust settles, but the big capital will be looking at who didn’t need to recover.
They’ll be looking at stocks like Facedrive (TSX.V:FD, OTCMKTS:FDVRF), where the deal flow is as fast as the trillion-dollar megatrend itself.
Other companies betting big on the ESG boom:
Alphabet Inc. (NASDAQ:GOOGL) is one of the leaders in the Big Tech push to go green. Not only is Alphabet powering its data centers with renewable energy, it is also on the cutting edge of innovation in the industry, investing in new technology and green solutions to build a more sustainable tomorrow. It’s bid to reduce its carbon footprint has been well received by both younger and older investors. And as the need to slow down climate change becomes increasingly dire, it’s easy to see why.
Alphabet’s focus is on raising the bar for smarter and more efficient use of the world’s limited resources has started a fire under its industry peers, forcing change throughout the tech sector and beyond.
Alphabet CEO Sundar Pichai explained, “We are committed to doing our part. Sustainability has been a core value for us since Larry and Sergey founded Google two decades ago. We were the first major company to become carbon neutral in 2007. We were the first major company to match our energy use with 100 percent renewable energy in 2017. We operate the cleanest global cloud in the industry, and we’re the world’s largest corporate purchaser of renewable energy.”
Alphabet has seen its share price increase by more than 25% this year alone, and that’s no easy feat for a company worth over a trillion dollars. And with Big Tech literally building the world around us, it’s likely to continue to grow for the foreseeable future.
Nvidia Corporation (NASDAQ:NVDA) has made major progress towards a more sustainable tomorrow. But what makes NVIDIA even more special is that it is tackling the ESG trend on all fronts. In fact, it was ranked as one of the world’s top 100 companies to work for due to its incredible working conditions, hiring practices and professional development programs. In addition to its ranking as one of the world’s top companies to work for, it was also ranked on MIT Tech Review’s 50 Smartest Companies list and the Human Rights Watch’s Corporate Equality Index.
Not only is Nvidia a role model for companies in its social and governance stance, it is also firmly committed to building a greener future, as well. From its push to use renewable energy in its day to day operations to its innovative technological advancements in chipmaking which reduce the amount of energy needed to power devices, Nvidia is checking all boxes for impact investors.
This year, Nvidia has done something that many other companies have struggled to do. Not only has it stayed afloat in one of the most trying years in recent history, it has thrived. Since January, Nvidia’s share price has increased from $293 to $529, representing a noteworthy 80% increase in value.
Renewable energy providers are some of the top picks for ESG investors, as well, but few have performed as well as Enphase Energy (NASDAQ:ENPH). Enphase is a Fremont, California-based company that designs and manufactures software-driven home energy solutions used in solar generation, home energy storage, and web-based monitoring and control.
ENPH reported a large Q2 GAAP loss with GAAP EPS clocking in at -$0.38, a good $0.44 below Wall Street’s consensus. The loss was mainly due to a $59.7M charge related to fair value changes related to convertible notes issued in March 2020. The company reported Q2 revenue of $125.53M (-6.4% Y/Y) after shipping approximately 1.1 million microinverters while also managing to drive channel inventory back to healthy levels with management attributing the revenue contraction to a difficult macro environment due to Covid-19.
Despite the tough first half of the year, however, Enphase has remained a favorite on Wall Street. Year-to-date, Enphase has seen its share price rise by a massive 472%, and it’s only just getting started. As the renewable push kicks into high gear, and with the United States expected to spend over $1.7 trillion on green energy initiatives over the next decade, Enphase might just emerge as one of the biggest winners.
NextEra Energy (NYSE:NEE) is another shining star in the renewable world. NextEra is the world’s leading producer of wind and solar energy, so it’s no surprise that it has received some love from the ‘millennial dollar.’
In 2018, the company was the number one capital investor in green energy infrastructure, and fifth largest capital investor across all sectors. No other company has been more active in reducing carbon emissions. And they’re just getting started. By 2025, the company aims to reduce their own emissions by 67 percent while doubling their electricity production from a 2005 benchmark.
To put this into perspective, if all of America’s utilities were able to achieve NextEra Energy’s projected 2025 emissions rate, absolute CO2 emissions for the power sector would be approximately 75% lower than they were in 2005.
Though it’s price movement hasn’t been as exciting as Enphase, it has remained on a consistent upward trajectory. In fact, long-term investors who bought in just 5 years ago would be sitting pretty on 300% returns. And the icing on the cake? It pays dividends.
No one can mention ESG investing without talking about the EV boom this year. While Tesla has dominated headlines, however, Nio Inc. (NYSE:NIO) has been making major moves. Though many analysts and even the most experienced traders were ready to leave it for dead just a year ago, the Chinese Tesla rival shocked markets, blowing away Wall Street estimates, and most importantly, keeping its balance sheet in line. And thanks to its efforts, the company has seen its share price soar from $3.24 at the start of 2020 to a high of $54.39 earlier this week, representing a stunning 1578% return for investors who have held on strong. And it’s just getting started.
Nio has made all the right moves over the past year to win over investors and turn heads on the streets and in the marketplace. On November 18th, NIO revealed a pair of sedans that even the biggest Tesla die-hard would struggle to pass up. The vehicles, meant to compete with Tesla’s Model 3, could be just what the company needs to pull back control of its local market from Elon Musk’s electric vehicle giant.
And it’s even rethinking the battery business. NIO recently began to offer a batteries-as-a-service concept, in which car buyers can ‘lease’ the battery of their vehicle and save as much as $10,000 on the price of a new vehicle, while also offering buyers the option to swap batteries after a few years of use.
Canadian companies are jumping on board, as well:
Shopify Inc (TSX:SH) is playing a pivotal role in the e-commerce boom. Not only does it help anyone and everyone who wants to have a try at launching their own business, it gives them the tools and resources to do so. And it’s not without its ethical grounding, either. Shopify is pushing towards sustainability in a major way. It has started its own sustainability fund, which it adds $5 million to each year to help tackle the looming climate crisis.
Polaris Infrastructure (TSX:PIF) Is a Toronto-based renewable energy giant with a global footprint. The company’s biggest projects are in Latin America. It’s Nicaragua geothermal project, for example, is already producing over 77 MW of renewable electricity. And in Peru, its El Carmen and 8 de Augusto power plants, is set to produce a combined 17MW of electricity in the near future.
Telus Corporation’s (TSE:T) long-standing commitment to putting its customers first fuels every aspect of its business, has had it a definitive leader in Canada. In fact, Telus Health is one of the country’s biggest healthcare IT providers. And it’s done so with sustainability in focus.
Driven by its goal to connect all Canadians for good, it has contributed over $55 in community giving, reduced emissions by 31% and has four consecutive years on the Dow Jones Sustainability World Index.
Shaw Communications Inc (TSE:SJR.B) is one of Canada’s leading telecom infrastructure and cloud service providers. Its dominance in Canada’s telecom sector means that if any internet-based services want to operate, they’ll likely be utilizing the company’s infrastructure. After all, without telecoms, these TaaS companies would not be able to operate. And that’s not necessarily a bad thing when you consider Shaw’s sustainability goals. In fact, it is one of the biggest customers of Bullfrog Power which sources its electricity from a blend of wind energy and hydropower. It is also building its own portfolio of clean energy investments.
Magna International (TSX:MG) is a great way to gain exposure to the EV – and by extension ESG – market without betting big on one of the new hot automaker stocks tearing up Robinhood right now. The 63 year old Canadian manufacturing giant provides mobility technology for automakers of all types. From GM and Ford to luxury brands like BMW and Tesla, Magna is a master at striking deals. And it’s clear to see why. The company has the experience and reputation that automakers are looking for.
By. Mike Danes
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that the demand for ride sharing services will grow; that Steer can help change car ownership in favor of subscription services; that Tracescan could help the travel and tourism industry deal with COVID and will sign new agreements for use of its alert wearables; that new tech deals will be signed by Facedrive and deals signed already will increase company revenues; that Facedrive will be able to expand to the US and globally; that Facedrive’s merchandise business and sports prediction app will prove popular and successful; that Facedrive will be able to fund its capital requirements in the near term and long term; and that Facedrive will be able to carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that riders are not as attracted to EV rides as expected; that competitors may offer better or cheaper alternatives to the Facedrive businesses; TraceScan may not work as expected in commercial settings and customers may not acquire or use it; changing governmental laws and policies; the company’s ability to obtain and retain necessary licensing in each geographical area in which it operates; the success of the company’s expansion activities and whether markets justify additional expansion; the ability of the company to attract drivers who have electric vehicles and hybrid cars; the ability of Facedrive to attract providers of good and services for merchandise partnerships on terms acceptable to both parties, and on profitable terms for Facedrive; and that the products co-branded by Facedrive may not be as merchantable as expected. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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