Temperatures have been rising, and U.S. Sen. Bernie Sanders is sounding the alarm.
In an op-ed titled "This year is set to be the hottest in history. Congress must act now" for The Guardian, Sanders pointed out that the past eight years have been the warmest ever documented.
And the world has to grapple with more than just summer heat.
"Climate change is ravaging the planet," he wrote. "We are now seeing floods, droughts, extreme weather disturbances and wildfires causing unprecedented damage."
Sanders explained that the imminent consequences of climate change include accelerated Arctic ice cap melting, rising sea levels and heightened flooding. The changes will increase droughts, disrupt food production and intensify storm damage. Economic downturns and mass migration because of water shortages are expected as well.
"Instead of denying this obvious reality, instead of doing the bidding of oil and coal companies, instead of fomenting a new cold war with China, members of Congress must develop an unprecedented sense of urgency about this global crisis," he said.
While Sanders made a compelling call to action, some corporations have already risen to the challenge. Here's a look at three green stocks that are actively tackling the issue.
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Tesla Inc. TSLA
According to the U.S. Environmental Protection Agency (EPA), 28% of America's greenhouse gas emissions in 2021 came from the transportation sector — and particularly from burning fossil fuels for cars, trucks, ships, trains and planes.
The EPA estimates that a typical passenger vehicle emits approximately 4.6 metric tons of carbon dioxide per year.
Tesla is helping resolve the issue by producing electric vehicles (EVs), which have no tailpipe emissions.
The company is making an impact. In the second quarter of 2023, it delivered 466,140 vehicles, representing an 83% increase year over year.
Tesla has been one of the more volatile names in the stock market. Shares fell 65% in 2022 but are up 170% in 2023.
First Solar Inc. FSLR
Solar energy can play a significant role in reducing greenhouse gas emissions. One reason is that it produces no emissions during the power generation process. And according to the United Nations, life-cycle assessments of solar power "clearly demonstrate that it has a smaller carbon footprint from ‘cradle-to-grave' than fossil fuels."
First Solar's solutions help humans harness the power of the sun. The company produces solar panels, including those used in utility-scale solar power plants.
The business brought in $548 million in net sales in the first quarter of 2023. For the full year, net sales are projected to be between $3.4 billion and $3.6 billion.
The stock market had a choppy ride over the past year, but First Solar investors probably aren't complaining. Over the past 12 months, shares have surged more than 180%.
NextEra Energy Partners LP NEP
NextEra Energy Partners was created by energy company NextEra Energy Inc. NEE to own, manage and acquire clean energy projects that generate steady cash flows.
Today, NextEra Energy Partners' portfolio holds interests in wind, solar and energy storage projects in the U.S., along with natural gas infrastructure assets in Texas and Pennsylvania.
Because natural gas is not considered a renewable energy source, NextEra Energy Partners is not a renewables pure-play. But it recently announced plans to become one.
"To lead this transition, we are launching a process to sell our natural gas pipeline assets, and we are suspending incentive distribution rights fees to NextEra Energy through 2026," John Ketchum, chairman and CEO of NextEra Energy Partners, said in a press release.
The partnership also stands out for its cash payout to investors.
NextEra Energy Partners currently pays quarterly distributions of 84.25 cents per share, giving the stock an annual yield of 5.7%. Management expects to grow the distribution per unit by 12% to 15% per year through at least 2026, although they mentioned that given the current capital market environment, the growth rate will probably be "at or near the bottom end of this range."
NextEra Energy Partners stock is down about 16% in 2023. If you like oversized dividends but aren't a fan of the volatility associated with publicly traded companies, you might want to look into reliable income plays outside the stock market — such as investing in rental properties with as little as $100 while staying completely hands-off.
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