So I began with a universe of raw materials stocks, filtered to exclude micro-caps. Then, using data from our partner CSRHub, and a bevy of press releases and environmental reportings sourced from company websites, I found six raw materials stocks that have made significant investments in improving their efficiency and their environmental impact.Unfortunately some of the companies with very interesting green investments also had poor environmental scores on CSRHub. This could mean that they were late to the "let's make our company green" party. But it also means that they might have projects in the pipeline which haven't yet affected earnings, or been priced into the stock. Click on the interactive chart below to view yearly returns over time. Do you see investing opportunities in these raw materials stocks that are investing in the environment? Use the list below to begin your analysis. 1. Cloud Peak Energy Inc. ( CLD): Engages in coal mining operations in the Powder River Basin of the United States. Market cap at $1.06B, most recent closing price at $17.69. Green Investments: Cloud Peak Energy focuses exclusively on low-sulphur coal, as opposed to its competitors. Sulphur dioxide is the worst greenhouse gas, and has the most stringent government regulations, since it causes acid rain. Any new caps on sulphur emissions, a real possibility, could benefit Cloud Peak since it is probably already compliant with them, and already has an excellent balance sheet. It's environmental rating on CSRHub is a robust 71, compared to an industry average of 52.
2. Nacco Industries Inc. ( NC): Engages in lift trucks, small appliances, specialty retail, and mining businesses primarily in the Americas, Europe, and the Asia-Pacific. Market cap at $492.01M, most recent closing price at $61.44. Green Investments: Nacco, once the North American Coal Company, has been a large supporter of land reclamation. This has earned them many awards from environmental groups like the Nature Conservancy. On CSRHub the company has an environmental rating of 75, mostly for the company's policies regarding climate change.
3. Statoil ASA ( STO): Engages in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products. Market cap at $75.72B, most recent closing price at $23.87.Green Investments: Statoil has a major interest in Carbon Dioxide infusion. When fossil fuels are burned they release Carbon Dioxide into the air, which traps heat and raises temperatures in the atmosphere. One way to prevent this from happening is by harvesting it and injecting it into the ground, or beneath sea-beds.However this is very costly, and not all of Statoil's projects have paid off. The company also takes credit for constructing the world's first off-shore, large capacity wind turbine.
4. AK Steel Holding Corporation ( AKS): Produces flat-rolled carbon, stainless, and electrical steels, and tubular products primarily in the United States and internationally. Market cap at $1.08M, most recent closing price at $7.91. Green Investments: AK Steel is a member of the US Government's Climate Vision Program which has exceeded emission reduction targets set by the Kyoto protocol. It also has invested heavily in co-generation technologies that use waste heat to generate electricity.
5. Solazyme, Inc. ( SZYM): Engages in the production of renewable oil. Market cap at $724.47M, most recent closing price at $10.73. Green Investment: Solazyme is a company involved in the biofuel sector that makes oil out of algae. They recently shifted their focus from producing algae on open ponds to a fermentation that extracts oil and can be done inside. Solazyme has a sky-high valuation and no profit margin, so careful investors might want to wait to see how the new strategy will pay off.
6. Nucor Corporation ( NUE): Engages in the manufacture and sale of steel and steel products in North America and internationally. Market cap at $16.89B, most recent closing price at $52.79. Green Investment: Nucor uses mini-mills for its production, which are less costly and more efficient than the major integrated mills used by many of their peers. It has also made many significant investments to use recycling to control costs by purchasing steel processing firms, auto-stripping plants, and other sources of scrap metal. It is one of the largest users of scrap metal in the country, making it an important example of how recycling can be profitable.
( List compiled by James Dennin, a Kapitall Writer. Yearly returns sourced from Zacks Invesment Research. All other data sourced from Finviz, except where indicated.)