ESG Stocks Take Center Stage As Damages From Climate-Related Events Rise Exponentially Within US

With climate change becoming a mega market force, ESG investing is taking center stage.

The iShares ESG Screened S&P 500 ETF XVV is up 28% year to date. The fund invests in company stocks that are deemed socially conscious. Mainly, the companies directly promote environmental responsibility,

The S&P 500 index is up about 24% over the same period.

BlackRock BLK Investment Institute’s Global Outlook 2024 sees opportunities on the ESG (environmental social and governance) side of the market. Olivia Markham is Portfolio Manager, Thematic and Sectors at BlackRock Fundamental Equity. She sees “opportunities in climate resilience solutions offering flood, fire and drought resistance.”

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The number of climate-related events, with damages totaling more than $1 billion, has risen exponentially over the past three decades. The U.S. hit a record number of such events in the first three quarters of 2023.

To this end, here are three Agri-Tech stocks working towards providing climate resilience solutions.

• Bayer AG BAYRY BAYZF: Bayer’s Crop Science division is promoting sustainable agriculture and creating the best possible outcomes for farmers. Bayer encourages regenerative agricultural practices by providing a broad range of solutions to support farmers.
• FMC Corporation FMC: FMC is a leading global agricultural sciences company. The company has committed to achieve net-zero greenhouse gas (GHG) emissions across its value chain by 2035. The company considers climate change and biodiversity loss as the biggest threats to agriculture and food production today.
• Corteva Inc CTVA: Corteva is committed to delivering innovative climate-positive agriculture solutions to farmers/ranchers that support on-farm productivity and profitability while benefiting our planet, our industry and the global food system. The company's advanced seed breeding helps crops not only withstand the extreme conditions that threaten food production worldwide, but also thrive, helping to optimize yields in the face of drought, insects, and disease.

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