Why ESG Investments are on Fire Right Now

Michael Burry, the fund manager who famously called the housing crash in the mid-aughts and became immortalized by Michael Lewis in his book, then movie, “The Big Short”. Burry is the bearer of bad news for bubble bouncers as he has warned crypto investors to expect the “mother of all crashes.”

“All hype/speculation is drawing in retail before the mother of all crashes. When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain’t changed,” he wrote in a recent tweet.

While his name is Burry, it may seem like all he does is bury stocks.  However, if you pay attention, he’s made many great calls to the long side.   As manager of Scion Capital hedge fund, Burry has used his value investing expertise to generate massive returns for investors. In less than a decade, Scion recorded aggregate returns of 489.34% net of fees and expenses.

That’s why when he talks I listen, at the end of the Big Short it was noted “Michael Burry is focusing all of his trading on one commodity: Water”

Following this logic, I found a great ETF for investing in water scarcity $PHO.  

The Invesco Water Resources ETF (Fund) is based on the NASDAQ OMX US Water Index (Index). The Fund generally will invest at least 90% of its total assets in common stocks and American depositary receipts (ADRs) and global depositary receipts (GDRs) of companies in the water industry that comprise the Underlying Index. The Underlying Index seeks to track the performance of US exchange-listed companies that create products designed to conserve and purify water for homes, businesses and industries. The Fund and the Index are rebalanced quarterly and reconstituted annually in April.

In the past 5 years the fund is up a whooping 116%.  In the past year alone the ETF is up over 50% and continues to climb.

PHO is part of a larger investment movement called ESG.  Environmental, Social and Governance, defined by company’s whose operations are socially conscious.  Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. 

Recently, Piyush Gupta, group chief executive of Singapore’s largest bank DBS said, “The truth is that there is a tsunami of money being directed at ESG (Environmental, Social and Governance) investments,”

He’s not wrong, between 2018 and 2020, total U.S.-domiciled sustainably invested assets under management, both institutional and retail, grew 42%, to $17.1 trillion, up from $12 trillion.

That’s why I’m always looking for new potential ESG breakout plays, which led me to EcoDepot Inc. (OTCMKTS:ECDP) Through its subsidiary Bronya Canada Group, Inc., ECDP has created “a global solution in the battle on climate change”.

The company recently presented it’s Bronya Climate Shield Thermal Paint coating at the United Nations World Tourism Organization, (FITUR )Conference in Madrid, Spain on May 20th, 2021. As a result of the UNWTO FITUR Conference in Madrid Spain, Bronya Climate Shield was invited to demonstrate its Bronya Climate Shield Thermal Paint Coating to the Advisory Council of the Federation of Latin American Cities, Municipal Associations (FLACMA) office in Madrid on May 21st, 2021.

The Latin American Federation of Cities, Municipalities and Municipal Associations (FLACMA) is a proactive organization of free adherence representing the 16,132 municipalities, cities and local government associations, networks, and unions municipalities of Latin America and the Caribbean. It is an international body that adheres to and promotes world and regional conventions signed by the national states of the Region. It is the official representation in the Region of the Union of Cities and Local Governments, UCLG, a world organization.

And the main reason I bring them up today, is the news they released yesterday.  ECDP updated shareholders on their recent activities.

Again, the UN, governments, International Energy Agency, are calling for corporate support to meet clean energy 2030 SDG initiatives. Bronya Climate Shield instantly delivers up to 40% efficiency in energy consumption and flow, industrially, commercially, and domestically, minimizing global carbon production by reducing energy consumption via a simple, affordable application. Bronya Climate Shield incentivizes corporate support in 2030 SDG initiatives by lowering overall production costs, improving working conditions for workers, improving equipment functionality and safety. The agencies empower organizations to meet required global and national energy consumption goals and recognizes these as beneficial to their health and success.

That’s why I have ECDP squarely on my ESG lotto ticket watchlist.