Large parts of the world are literally on fire right now due to extreme heat. The climate emergency is intensifying and this will have implications for all UK shares, from the largest FTSE 100 share to the smallest penny stock.
UK share investors need to take action to protect their wealth from this ‘new normal’. Many listed businesses face an uncertain future as our lifestyles change in response to the climate emergency.
Okay, the issue of company profits clearly pales into insignificance when experts talk about things like mass extinctions. But long-term wealth building remains an important topic too, and investors need to remain active to build capital for retirement.
Here are three shares I’m considering buying as the world’s weather patterns steadily change.
Foresight Solar Fund
A hotter climate will boost power generation from solar sources and, by consequence, the profits that renewable energy companies will make. Foresight Solar Fund Limited (LSE:FSFL) is one such share on my radar today.
Fresh data from energy think tank Ember shows this phenomenon in action. It indicates that solar power generation in Europe hit 129.2 terawatt hours in the first half of 2023. This was up 11% year on year and represented new record highs. With the heatwave tipped to carry on into August at least the dial should continue to rise.
I like Foresight Solar Fund because of its wide geographic wingspan. It owns assets in the UK, Spain, and Australia. Because of this, group earnings are less reliant on favourable weather conditions in one or two places, thus reducing risk for investors.
Keeping up solar panels and related infrastructure isn’t cheap. But I’m still convinced the business could deliver solid long-term returns as renewable energy demand booms.
Antofagasta
Rising investment in carbon-cutting technologies also means copper consumption is set to soar. The red metal’s unique qualities make it a critical material for the growth of the renewable energy and electric vehicle sectors, as the chart below shows.
Investing in a copper miner therefore could be a good idea. FTSE 100-quoted Antofagasta (LSE:ANTO) is one such share I’m considering buying today. It’s one of the world’s top 10 biggest producers of the commodity, and owns a large portfolio of working mines and exploration assets in Chile.
Be aware that Antofagasta isn’t immune to the problems of climate change itself, though. Indeed, drought conditions severely impacted production at the firm’s Los Pelambres mine in 2022. But on balance I think the earnings outlook here is extremely bright.
Anglo American
Mega miner Anglo American (LSE:AAL) is another safe-haven share I might buy for the climate emergency. Like Antofagasta, it provides a range of metals that make the energy transition possible. These include copper, nickel, manganese, and platinum group metals.
But its ownership of the Woodsmith project is what sets it apart from other mining stocks. The asset — which the company hopes to get up and running by 2027 — is the world’s largest-known source of polyhalite, a critical material in fertilisers.
Increasingly severe droughts, combined with a steady decline in farmable land, all mean crop yields need to rise significantly. Commodities like polyhalite will play an essential role in feeding our growing global population. I’d buy Anglo American shares even though trouble getting Woodsmith online could hamper earnings.
The post 3 FTSE 100 and FTSE 250 shares I’d buy to protect myself from the climate emergency appeared first on The Motley Fool UK.
Pound coins for sale — 51 pence?
This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!
Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.
What’s more, it currently boasts a stellar dividend yield of around 8.5%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Foresight Solar Fund. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
Large parts of the world are literally on fire right now due to extreme heat. The climate emergency is intensifying and this will have implications for all UK shares, from the largest FTSE 100 share to the smallest penny stock.
UK share investors need to take action to protect their wealth from this ‘new normal’. Many listed businesses face an uncertain future as our lifestyles change in response to the climate emergency.
Okay, the issue of company profits clearly pales into insignificance when experts talk about things like mass extinctions. But long-term wealth building remains an important topic too, and investors need to remain active to build capital for retirement.
Here are three shares I’m considering buying as the world’s weather patterns steadily change.
Foresight Solar Fund
A hotter climate will boost power generation from solar sources and, by consequence, the profits that renewable energy companies will make. Foresight Solar Fund Limited (LSE:FSFL) is one such share on my radar today.
Fresh data from energy think tank Ember shows this phenomenon in action. It indicates that solar power generation in Europe hit 129.2 terawatt hours in the first half of 2023. This was up 11% year on year and represented new record highs. With the heatwave tipped to carry on into August at least the dial should continue to rise.
I like Foresight Solar Fund because of its wide geographic wingspan. It owns assets in the UK, Spain, and Australia. Because of this, group earnings are less reliant on favourable weather conditions in one or two places, thus reducing risk for investors.
Keeping up solar panels and related infrastructure isn’t cheap. But I’m still convinced the business could deliver solid long-term returns as renewable energy demand booms.
Antofagasta
Rising investment in carbon-cutting technologies also means copper consumption is set to soar. The red metal’s unique qualities make it a critical material for the growth of the renewable energy and electric vehicle sectors, as the chart below shows.
Investing in a copper miner therefore could be a good idea. FTSE 100-quoted Antofagasta (LSE:ANTO) is one such share I’m considering buying today. It’s one of the world’s top 10 biggest producers of the commodity, and owns a large portfolio of working mines and exploration assets in Chile.
Be aware that Antofagasta isn’t immune to the problems of climate change itself, though. Indeed, drought conditions severely impacted production at the firm’s Los Pelambres mine in 2022. But on balance I think the earnings outlook here is extremely bright.
Anglo American
Mega miner Anglo American (LSE:AAL) is another safe-haven share I might buy for the climate emergency. Like Antofagasta, it provides a range of metals that make the energy transition possible. These include copper, nickel, manganese, and platinum group metals.
But its ownership of the Woodsmith project is what sets it apart from other mining stocks. The asset — which the company hopes to get up and running by 2027 — is the world’s largest-known source of polyhalite, a critical material in fertilisers.
Increasingly severe droughts, combined with a steady decline in farmable land, all mean crop yields need to rise significantly. Commodities like polyhalite will play an essential role in feeding our growing global population. I’d buy Anglo American shares even though trouble getting Woodsmith online could hamper earnings.
The post 3 FTSE 100 and FTSE 250 shares I’d buy to protect myself from the climate emergency appeared first on The Motley Fool UK.
Pound coins for sale — 51 pence?
This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!
Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.
What’s more, it currently boasts a stellar dividend yield of around 8.5%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?
setButtonColorDefaults(“#5FA85D”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#FFFFFF”, ‘color’, ‘#FFFFFF’);
})()
More reading
Down 38% from January, this FTSE 100 dividend star looks cheap to me
Up 12% in a week! This FTSE 100 growth stock looks set to lead the market rally
3 high-yield FTSE 100 shares that could be too cheap to miss!
Down 40% from this year’s high, this FTSE 100 stock looks cheap to me
Should I buy these FTSE 100 dividend stocks for a long-term second income?
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Foresight Solar Fund. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
