ESG investing refers to investing in companies that fit into one of three categories; Environmental, Social, and Corporate Governance. These companies are seeking to make ethical changes in the above categories.
This is an extremely hot sector, according to Morningstar, the amount of capital flowing into ESG related funds, went from $5.4 billion in 2018 to $21.4 billion in 2019, and last year, brought in a staggering $51.1 billion. This is why Piyush Gupta, group chief executive of Singapore’s largest bank DBS recently said, “The truth is that there is a tsunami of money being directed at ESG investments,”
With that said, here are 4 small cap ESG investments that could receive some of that money Mr. Gupta is referring to.
Torchlight Energy Resources Inc. (NASDAQ: TRCH)
Torchlight Energy Resources is an exploration and production company working in the oil and gas industry which doesn’t necessarily sound like “ESG” material. However, after announcing it would be acquired by Canadian-based Metamaterial who produces high-performance materials and those made from nanocomposites; it entered the space, and the stock has been on fire.
Recently, TRCH has found favor with the meme stock crowd making it a stock you should pay attention to today.
Denison Mines Corp. (NYSE: DNN)
DNN has brought investors 195% gains over the course of the past twelve months. They are a major uranium miner in the Athabasca Region of Northern Canada. Right now, its flagship property known as the Wheeler River Uranium Project, is the largest undeveloped uranium project in Northern Saskatchewan.
DNN’s large following makes them worth your energy.
NexGen Energy Ltd. (NYSE: NXE)
NXE is also focused in the Athabasca Region of Saskatchewan, Canada. The company owns a 100% interest in the Rook I mine, which is where the famed Arrow Deposit was discovered a few years ago.
Back in March, NexGen announced the exercise of $22.5 million in over-allotment options in connection with a recent bought-deal financing deal.
Eco Depot, Inc. (OTCMKTS:ECDP)
While it’s a tough to see why the above stocks are ESG opportunities, ECDP is a bit more obvious. Through its subsidiary Bronya Canada Group, Inc., ECDP has created “a global solution in the battle on climate change”. The company recently presented it’s Bronya Climate Shield Thermal Paint coating at the United Nations World Tourism Organization, (FITUR )Conference in Madrid, Spain on May 20th, 2021. As a result of the UNWTO FITUR Conference in Madrid Spain, Bronya Climate Shield was invited to demonstrate its Bronya Climate Shield Thermal Paint Coating to the Advisory Council of the Federation of Latin American Cities, Municipal Associations (FLACMA) office in Madrid on May 21st, 2021.
ECDP has an intriguing solution that can save their clients 40% on energy costs, which is Environmentally responsible as it gets.