Looking to invest in more ESG-friendly companies? Here are the top companies that use the most overall green energy.
When valuing any company, many investors tend to focus only on quantifiable measures for financial performance, sales figures, innovation, and the like. And although inherently true, you cannot perform a DCF valuation with merely a company’s ESG facts and figures in hand, this does not discredit their valid use in determining worthy investments. In the face of a global climate crisis and a worldwide shift away from hydrocarbons, here are the companies most invested into using green sources of energy for those looking to “greenify” their portfolio.
At the top of the list is Google (NASDAQ: GOOGL), which really doesn’t come as any surprise. The tech giant is literally ‘all-in’ on renewables, as shown by its 7,492,567,647 kWh of renewable energy usage from solar and wind. From a statement by Google: We’re proud to announce that in 2020 Google again matched 100 percent of its global electricity use with purchases of renewable energy. … All told, we’ve signed agreements to buy power from more than 50 renewable energy projects, with a combined capacity of 5.5 gigawatts — about the same as a million solar rooftops.
After Google comes another pioneer in the software space, Microsoft (NASDAQ: MSFT). Microsoft used 5,982,112,000 kWh of renewable energy from a combination of small-hydro, solar, and wind. Among their already stellar accomplishments in adopting green energy, the company is pledging to go carbon-neutral by 2030, remove their historical carbon emissions by 2050, and manage a $1 billion climate innovation fund. For those investors looking for a company who takes renewable energy seriously, look no further than Microsoft for your choice.\
Trailing behind Microsoft and Google is the historical giant but recent runner-up to AMD in the computer chips manufacturing business, Intel Corporation (NASDAQ: INTC). Intel operates with a heavy-hitting 5,022,773,872 kWh of renewable energy usage from a truly diversified portfolio of renewables options. They pledge to reach 100% renewables usage as well as zero wasteful emissions by 2030. In addition, they have managed to cut water usage by 38%, a feat that has saved the company 44 billion gallons in the last decade alone. Even for the hardcore AMD fans, it is hard to deny the true impact Intel has when it comes to adopting green energy.
Coming in fourth place by a considerable margin is the wholesaling giant, Walmart (NYSE: WMT). The company has used 2,718,227,534 kWh in renewable energy from various sources. However, considering the absolute behemoth that Walmart is, it then comes to no surprise that this figure only amounts to 14% of its total power usage. However, Walmart is still a top contender and plans to go 100% renewable by 2035, which is a few years behind some of its tech-focused peers in this list. All in all, Walmart will grow through its e-commerce business, and slowly adapt to more sustainable sources of energy.
The last mention on our list is Procter & Gamble (NYSE: PG), the multinational consumer goods company that has products guaranteed to be in your household right now. They used 2,530,523,507 kWh of renewable energy from various sources, which only trails Walmart by a small margin. P&G has its ambition goal for sustainability, which is to purchase 100% renewable energy globally by 2030. Recently, they added a serious milestone to achieving this goal by 100% renewables in Canada, the U.S., and even Western Europe. If P & G is successful in completing this goal, it will give the rest of the listed companies a run for their money when it comes to renewables usage.
These are only a select few of the world’s largest companies that have proven vested interests in renewable energy. For the ESG-wary investor, keep on the lookout for news about these companies, as they will clearly be green choices to add to your portfolio.
What other green companies do you know of that weren’t mentioned? Share them in the comments below!
Written by Benny Fang