An analysis of recent earnings calls reveals that environmental investments remained a strong topic in the news. Specifically, we explore manufacturing and supply chain activity from energy giants Iberdrola and Enel as well as Air Canada making an investment in a carbon capture solution.

Sam Leavitt
November 18, 2022

Key ESG Highlights in Earnings—AC.CA, ENEL.IT, IBE.ES, NEE

Key ESG Highlights in Earnings—AC.CA, ENEL.IT, IBE.ES, NEE

During this earnings call season, environmental investments were a prominent theme on our ESG Safeguard platform. That has continued in recent weeks with several key topics featuring prominently from company news.

ESG Safeguard Platform: Environmental Investment Topic Counts from Earnings Calls, Past 30 Days

Renewable Energy Activity from European Companies

Last week at its Capital Markets Day, Iberdrola (IBE:ES) outlined plans to invest €47 B Euros into renewable energy by 2025. Iberdrola is currently one of the largest renewable energy providers in the world, and this spend would launch them into their own stratosphere. They estimate a net profit of €5.4 B Euros at the end of this period. Much of this development is slated for their home market in Europe, but they are planning some projects in the Americas as well.

This week, Enel (ENEL:IT) announced that they will be building a solar PV factory in the US. This move is part of a larger shift of renewable energy transition from China to the North American market as a result of environmental legislation passed this past summer. With limitations for subsidies awarded only to materials and vehicles produced with North American supply chains, this is the start of a new era in American manufacturing when it comes to clean technology.

Questions or comments you want to discuss on this analysis? Message me and let's talk about it!

Acquisitions and Carbon Capture from North American Companies

NextEra (NEE:US) announced this week that they would be investing $800 M to expand their renewable energy portfolio through acquisitions. NextEra is one of the largest providers of renewable energy in the U.S. and these acquisitions will bolster their position as a leader in this space. 

Air Canada (AC:CA) is investing in carbon capture company Carbon Engineering as part of its goal to reach net zero emissions by 2050. In theor,y the solution would be a device that could be retrofitted onto current aircraft and pull exhaust through a fan that would then filter and capture the Co2 like a vacuum cleaner. If scalable, this novel solution could be a boon for the airline industry which has struggled to reduce emissions.

New Investments Take Hold

Overall investments in recent weeks have leaned more towards traditional solar and wind development with huge capital outlays from established players. However, novel technological developments like Air Canada’s carbon capture and storage play show that some of the more exciting developments in the market are only heating up.

Interested running these types of analyses with our ESG platform?

Request an ESG demo today to find out how you can analyze earnings call transcripts and other financial documents with our text analytics platform. Spot outliers, identify critical insights, and understand key drivers.

About Amenity

Amenity Analytics is the industry leader in providing insights from unstructured text by using Natural Language Processing (NLP) assisted by Artificial Intelligence (AI) and Machine Learning (ML). Amenity’s NLP system is a sector-agnostic, language-dependent tool for quantitative text analysis that is deployed across the financial services industry and beyond.

This communication does not represent investment advice. Transcript text provided by FACTSET and S&P Global Market Intelligence.

Copyright ©2022 Amenity Analytics.