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Investing in environmental companies 15 June , 2007

Posted by eugene in 6 Use Rights as Citizens & Consumers.

ABN Amro launched ten Zero Strike Participation Certificates last week, including ten emerging markets and two themed zero certs. One of the themed zero certs is the ABN AMRO Climate Change & Environment Price Return Index. The index tracks 30 environmental companies in the following sectors: Ethanol; Hydroelectric Power; Other Alternative Fuels; Platinum and Palladium Mining; Solar Power; Water; Waste Management; and Wind Power. Some companies in the index include big players such as Veolia Environment, Waste Management Inc, Vestas Wind Systems, Suntech Power, Allied Waste Industries, etc.

The environment themed zero cert gives local investors another investment choice besides investing in stocks of individual environmental companies or energy related unit trusts. My understanding of the new zero certs is limited. The zero certs are actually call warants that expire on a certain date and can be traded like stocks. The environment index zero certs expires on 28 Mar 2010. For more info, ABN AMRO will be holding a free seminar on the zero certs on 28 Jun at the SGX Centre. To register, check out ABN AMRO’s website.

There is no guarantee that environmental companies will do well but climate change and the environment will continue to be a hot issue over the next few years. More countries and companies will take action to improve their environmental performance and clean up their act. And this means business for environmental companies who help to clean up the land, water, air, and provide clean energy.

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