Invest your money to support only climate pure players

methodology

The Pure Climate Stocks Methodology does all the heavy lifting for you Climate action is equally important to me as profitable investing. With the Pure Climate Stocks Methodology, your funds are invested in companies that make 100% of their money through products and services that contribute to fighting climate change.

By most estimates, there are more than 40,000 stocks traded at around 200 exchanges worldwide. I’ve done the heavy lifting of screening them for you with the Pure Climate Stocks Methodology. Based on the results, I’ve selected more than 200 publicly listed companies that are climate pure players.

In-depth analysis to determine real climate impact

The Pure Climate Stocks Methodology is a rigorous and uncomplicated approach for building a stock list of companies making 100% of their revenue through a positive climate impact. Here is a snapshot of the approach:

Net - zero by 2050

Environmental scientists warn that by 2050, the total amount of carbon emitted globally must equal the amount of carbon removed from the atmosphere.

Technology analysis

Detailed review of the technologies required to achieve net zero emissions based on expert research and analysis.

Company Analysis

In-depth screening of stock-listed companies with business models in net zero technologies. Only those companies that generate 100% of their revenue from products or services incorporating net zero technologies earn a place on the Pure Climate Stocks list.

Quarterly Updating

Continuous review of quarterly reports to validate continued climate pure player status.

What industries  are served by pure climate players?

Renewable energy

Renewable electricity forms the backbone of our transition to a climate friendly economy. The demand for green electricity will significantly increase over the coming decades as a means of reducing fossil fuel consumption in transportation, industry and heating.

Alternative proteins

Animal meat and dairy production is responsible for around 14% of global carbon emissions. Investing in plant-based alternatives like pea protein saves considerable carbon emissions.

Circular economy

Reusing and recycling existing materials counters the need for new production. It also reduces carbon emissions, if the recycled product has a lower carbon footprint than the newly produced one. Viable recycling solutions are beginning to emerge across the value-chain.

Carbon removal

Technologies are under development to remove carbon released into the atmosphere from fossil fuel combustion and industrial processes. By permanently storing the carbon, these technologies provide an important contribution to the fight against climate change.

Hydrogen

Energy intensive industries, like iron and steel or cement, currently burn enormous amounts of fossil fuels for heat generation. The use of fossil fuels can be replaced with green hydrogen produced from renewable energy — which also has the capacity to decarbonize transportation (e.g., freight transport) and function as energy storage.

E-mobility

Electricity powered transportation is essential to replace fossil fuel consumption in the mobility sector. The higher the share of renewable electricity in national grids, the lower the carbon emissions from e-mobility will become.

What industries  are served by pure climate players?

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Renewable energy

Renewable electricity forms the backbone of our transition to a climate friendly economy. The demand for green electricity will significantly increase over the coming decades as a means of reducing fossil fuel consumption in transportation, industry and heating.

Icon without names svg 06

Alternative proteins

Animal meat and dairy production is responsible for around 14% of global carbon emissions. Investing in plant-based alternatives like pea protein saves considerable carbon emissions.

Icon without names svg 04

Circular economy

Reusing and recycling existing materials counters the need for new production. It also reduces carbon emissions, if the recycled product has a lower carbon footprint than the newly produced one. Viable recycling solutions are beginning to emerge across the value-chain.

Icon without names svg 05

Carbon removal

Technologies are under development to remove carbon released into the atmosphere from fossil fuel combustion and industrial processes. By permanently storing the carbon, these technologies provide an important contribution to the fight against climate change.

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Transportation

Significantly reducing our carbon emissions footprint from transporting passengers and goods locally and globally requires integrated, public and shared transport solutions on roads, rails and waterways.

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Hydrogen

Energy intensive industries, like iron and steel or cement, currently burn enormous amounts of fossil fuels for heat generation. The use of fossil fuels can be replaced with green hydrogen produced from renewable energy — which also has the capacity to decarbonize transportation (e.g., freight transport) and function as energy storage.

Icon without names svg 02

E-mobility

Electricity powered transportation is essential to replace fossil fuel consumption in the mobility sector. The higher the share of renewable electricity in national grids, the lower the carbon emissions from e-mobility will become.

Learn how pure climate stock screening works

If you’re still hungry for more information on how I create the Pure Climate Stocks list, here’s a detailed rundown:

 

Identify critical technologies for the net zero transformation

Society needs to undergo an unprecedented transition in what goods and services we produce and consume - as well as how we produce them. Widespread implementation of new and innovative technologies that enable the development of new products and services with significantly lower carbon emissions is vital for reaching net zero. There is a strong consensus on the needed technologies for this change among scientists, the business community and environmental NGOs evidenced by numerous studies over recent years[3] [4] [5] [6] [7].

Identify stock-listed companies with business models in net zero technologies

A very simplistic definition of a business model is: how a company makes money. Screening for publicly traded companies that are generating their revenues by offering products or services around net zero technologies is therefore an essential part of the Pure Climate Stocks Methodology.

Select only the climate pure players

Only 100% climate impact is good enough for a company to be a pure climate stock. Only those companies that generate all their revenue from products or services around net zero technologies make it to the final list.

Quarterly updating

Continuous review of quarterly reports to validate continued climate pure player status and inclusion of new pure climate stocks. 

O

Urgent need for net zero global emissions by 2050

The Intergovernmental Panel on Climate Change (IPCC) asserts that as a global society, we need to achieve net zero emissions by 2050 to prevent the average temperature on earth from climbing beyond 1.5 – 2.0°C compared to pre-industrial levels. Net zero means that in 2050, the total amount of global carbon emitted needs to equal the amount of carbon removed from the atmosphere.

1

Identify critical technologies to facilitate a net zero transformation

Society needs to undergo an unprecedented transition in the goods and services we produce and consume — and the way we produce them. Widespread implementation of innovative technologies that enable the development of new products and services with significantly lower carbon emissions is vital for reaching net zero. There is a strong consensus among scientists, the business community and environmental NGOs about the technologies needed to establish this change, evidenced by numerous studies conducted over recent years. [3] [4] [5] [6] [7]

2

Identify stock-listed companies with business models in net zero technologies

A simplified definition of a business model is: how a company makes money. Screening for publicly traded companies that generate revenues by offering products or services around net zero technologies is therefore an essential part of the Pure Climate Stocks Methodology.

3

Select only the climate pure players

Only 100% climate impact is sufficient for a company to constitute a pure climate stock. Only those companies that generate all their revenue from products or services around net zero technologies make it to my final list.

4

Quarterly updating

Continuous review of quarterly reports to validate continued climate pure player status and inclusion of new pure climate stocks.

O

Urgent need for net zero global emissions by 2050

The Intergovernmental Panel on Climate Change (IPCC) asserts that as a global society, we need to achieve net zero emissions by 2050 to prevent the average temperature on earth from climbing beyond 1.5 – 2.0°C compared to pre-industrial levels. Net zero means that in 2050, the total amount of global carbon emitted needs to equal the amount of carbon removed from the atmosphere.

1

Identify critical technologies to facilitate a net zero transformation

Society needs to undergo an unprecedented transition in the goods and services we produce and consume — and the way we produce them. Widespread implementation of innovative technologies that enable the development of new products and services with significantly lower carbon emissions is vital for reaching net zero. There is a strong consensus among scientists, the business community and environmental NGOs about the technologies needed to establish this change, evidenced by numerous studies conducted over recent years.[3] [4] [5] [6] [7].

2

Identify stock-listed companies with business models in net zero technologies

A simplified definition of a business model is: how a company makes money. Screening for publicly traded companies that generate revenues by offering products or services around net zero technologies is therefore an essential part of the Pure Climate Stocks Methodology.

3

Select only the climate pure players

Only 100% climate impact is sufficient for a company to constitute a pure climate stock. Only those companies that generate all their revenue from products or services around net zero technologies make it to our final list.

4

Quarterly updating

Continuous review of quarterly reports to validate continued climate pure player status and inclusion of new pure climate stocks.

Methodology of Pearls and Wisdom Used for the Pure Climate Stocks

If you would like to dive even deeper into the subject, get in your scooba gear and jump into it

[1] The IPCC provides the foundations for science-based decisions for policy makers.  The IPCC independently collects and summarises scientific research work from more than hundreds of scientists all over the world.

[2] Intergovernmental Panel on Climate Change (IPCC) (2018): Global Warming of 1.5°C. Summary for Policymakers. IPCC Special Report. https://www.ipcc.ch/sr15/download/#chapter

[3] International Energy Agency (IEA) (2021): Net Zero by 2050. A Roadmap for the Global Energy Sector. https://www.iea.org/reports/net-zero-by-2050

[4] World Business Council for Sustainable Development (WBCSD) (2018): New energy solutions for 1.5°C Pathways and technologies to achieve the Paris Agreement. https://www.wbcsd.org/Programs/Climate-and-Energy/Energy/New-Energy-Solutions/Resources/New-Energy-Solutions-for-1.5-C

[5] World Wildlife Fund (WWF) (2019): Climate protection in the industrial sector. Call for the Federal Government to develop Germany as a climate-neutral industrial location. https://www.wwf.de/fileadmin/fm-wwf/Publikationen-PDF/WWF-Position-on-Industrial-Decarbonisation-engl.pdf

[6] Boston Consulting Group (BCG) (2021): Food for Thought. The Protein Transformation. https://www.bcg.com/de-de/publications/2021/the-benefits-of-plant-based-meats

[7] SYSTEMIQ (2020): The Paris Effect. How the climate agreement is reshaping the global economy. https://www.systemiq.earth/paris-effect/

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