Long Live the King: Selections from the Terra Carta of King Charles


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New monarch, new priorities?

Queen Elizabeth ruled the UK for 70 years and the world will mourn her passing. But no, we face the unknown of new leadership, and that can be a catalyst for the world. economy. Fortunately, a transparent way to assess the priorities of new leaders is to launch a major new initiative. Be sure to start your research now, as it will take some time before a financial impact can be established.

The modern Magna Carta

The Terra Carta, part of the Sustainable Markets Initiative, was created by His Royal Highness Prince Charles, soon to be crowned His Royal Majesty King Charles, to advance zero carbon programs in businesses around the world. entire. While Queen Elizabeth tended to stay away and allow the government to control these kinds of initiatives, her son can play a different role and providing sustainability goals is a great place to start.

The Terra Carta emphasizes emission reduction and sustainable development, areas that are controversial to say the least. However, increased transparency through such accreditation is great to see. 2021 was the first year that companies around the world were recognized for their work cleaning up their dirty or unsustainable historic operations. Some companies are household names in the consumer world that have started basing their energy demand on renewables, while others are utilities and engineering companies that help create the infrastructure. clean and renewable needed for the future. Take a look at what Prince Charles had to say last year.

In the inaugural class of 2021, 47 companies earned the official Terra Carta seal. The global reach of these publicly traded companies provides a means to invest and direct capital towards positive sustainability. Money is power, and if investors back companies like these, others will be incentivized to do the same, creating a positive feedback loop towards sustainability. In this article, I will summarize the list of seal recipients and point out which leaders to consider as an investment.

Terra Carta Winners

While there are many other companies that may be in the process of developing sustainable technologies, I find these recipients to be leaders in their respective categories and worthy of consideration compared to their peers. I will discuss this in more detail if necessary by speaking to each individual in the company.

  1. Acciona (OTCPK:ACXIF)(ANA.MC) – Infrastructure and renewable energy developer – Spain

  2. Akzo Nobel (OTCQX:AKZOY)(AKZA.AS) – Specialty chemicals (paint and coatings) – Netherlands

  3. Amazon (AMZN) – E-commerce and cloud infrastructure – United States

  4. Arçelik Anonim Şirketi (OTCPK:ACKAY) – Home Appliance Manufacturer – Turkey

  5. AstraZeneca (AZN) – Pharmaceuticals – UK

  6. Atlantica Sustainable Infrastructure (AY) – Renewable Energy Developer – UK

  7. Banco Santander (SAN) – World Bank – Spain

  8. Bank of America (BAC) – Diversified bank – United States

  9. Brambles (OTCPK:BXBLY) – Supply Chain Logistics – Australia

  10. BP (BP) – Energy – United Kingdom

  11. BT Group (OTCPK:BTGOF)(BT-AL) – Telecom – UK

  12. City Developments Limited (OTCPK:CDEVY) (C09.SI) – Real Estate Development and Operation – Singapore

  13. Cogeco Communications (OTCPK:CGECF) (CGO.CA) – Telecom – Canada

  14. Credit Suisse (CS) – Bank – Switzerland

  15. Cummins (CMI) – Machinery and Truck Manufacturer – USA

  16. Ericsson (ERIC) – Telecom and IT equipment – Sweden

  17. Hewlett Packard Enterprise (HPE) – Computer hardware – United States

  18. HP (HPQ) – Consumer Tech Hardware – US

  19. HSBC (HSBC) – World Bank – UK

  20. Iberdrola (OTCPK:IBDRY) – Renewable energy – Spain

  21. IBM (IBM) – Technology Solutions – United States

  22. INDITEX (OTCPK:IDEXY) – Clothing – Spain

  23. Johnson Controls International (JCI) – HVAC and Building Solutions – Ireland

  24. Lloyds (LYG) – Bank – UK

  25. L’Oreal (OTCPK:LRLCY) (OR.PA) – Personal Care – France

  26. McCormick (MKC) – Agribusiness Solutions – United States

  27. Metso Outotec (OTCPK:OUKPY) (MOCORP.HE) – Mining equipment – Finland

  28. National Australia Bank (OTCPK:NABZY) (NAB.AX) – Australia

  29. Natura & Co (NTCO) – Personal Care – Brazil

  30. Nordea (OTCPK:NRDBY) (NDA-FI.HE) – Bank – Finland

  31. Novo Nordisk (NVO) – Pharmaceuticals – Denmark

  32. Novozymes (OTCPK:NVZMY) (NZYM.CO) – Specialty chemicals (enzymes and biomaterials) – Denmark

  33. Orsted (OTCPK:DNNGY) (ORSTED.CO) – Wind energy – Denmark

  34. Pepsi (PEP) – Food and beverage – United States

  35. Prologis (PLD) – Real estate (logistics) – United States

  36. Salesforce (CRM) – Application software – United States

  37. SAP (SAP) – Application Software – Germany

  38. Siemens Energy (OTCPK:SMNEY) (ENR-DE) – Renewable Energy – Germany

  39. Sims Limited (OTCPK:SMSMY) (SGM.ASX) – Recycling – Australia

  40. Stantec (STN) (STN:CA) – Engineering and construction – Canada

  41. Tech Mahindra (TECHM.NS) – IT Solutions – India

  42. Telus (TU) (T:CA) – Telecom – Canada

  43. Tesco (OTCQX:TSCDY) (TSCO.L) – Food retail – UK

  44. Trane (TT) – Building materials and solutions – Ireland

  45. TSMC (TSM) – Semiconductors – Taiwan

  46. Unilever (UL) – Consumer Staples (Diversified) – UK

  47. Xerox (XRX) – Computer hardware – United States

Who stands out?

The list primarily focuses on multinational companies with significant consumer exposure. Unfortunately, investment prospects vary greatly and only a few stand out as good choices.

One of the positives of Terra Carta seal winners is the significant overseas exposure. Although I tend to bypass Europe as a growth area, especially with the Russian invasion, there are deals for security or value investors. In particular, I find Unilever, Trane and Novo Nordisk to be pillars of quality in their potential industries, and temporary economic and stock price weakness will soon be a thing of the past.

For those like me who are looking for more serious total returns, I see Metso Outotec as a big play on revitalizing the once harmful mining industry around the world. Governments around the world are becoming stricter and Metso Outotec’s focus on durable, high quality products should benefit for years to come. In particular, consider the battery metal processing and recycling markets as important drivers of organic growth in the coming years.

Other strong companies, although perhaps currently overvalued, include Stantec, Prologis and Salesforce thanks to their leadership in their potential sectors and their stable financial profiles. I even see the performance of PLD and CRM as superior to that of Amazon, which is essentially a combination of the two companies (logistics meets cloud).

Every other company is suffering from macro issues (such as AUM outflows from finance) or growth issues (the fall from grace of hardware names HP and Xerox). For the telecom providers listed, I consider the names listed to be unable to deliver meaningful outperformance simply because they are on this list, and I find NTT to be a viable sustainable alternative that has been left out (note the lack of Asian companies on the list) .

For chemical and personal care companies, many competitors offer durable products, and names like Ingevity (NGVT) and Ashland (ASH) stand out from Akzo Nobel and consumer staples. As always, be sure to stay up to date with my analysis, as many comparisons and coverage of Terra Carta winners have and will continue to come out.

Final Thoughts

Remember that the Terra Carta is a new accreditation body and will be updated every year. As such, I would recommend waiting for further data on sustainability metrics and new Terra Carta Seal winners to move forward. In the meantime, this is a long list to research and I hope you find some interesting potential holdings. Not to mention the political and economic influence that King Charles could now wield in the years to come. Although I find it can be a louder voice, maybe the impacts will be limited.

Let me know if you would like to see further research on a particular name or the group.

Thanks for reading.

Editor’s Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these actions.

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