The European ‘racing cars’ of sustainability with which to start 2022

Sustainable investment experienced a real boom in 2020, a year in which portfolios rotated towards safe values ​​to avoid further shocks. In 2021, this trend has only strengthened: according to Morningstar, with data up to September, flows to global sustainable funds practically doubled in half a year, to $ 3.9 trillion. See more articles on sustainability at elEconomista Sustainable investment and ESG.

Looking ahead to 2022, with European regulations forcing entities to introduce sustainability in their day-to-day life, everything indicates that this trend will continue. In fact, according to PwC estimates, responsible funds should represent 57% of total assets under management in Europe by 2025.

If we focus on the Old Continent, inside the EuroStoxx 50 -index that groups together the largest and most liquid stocks in the euro zone- there are already 15 listed ones that count nowadays with a triple A in sustainability by MSCI. That rating of AAA It implies that these companies are the best in the way they manage environmental, social and governance (ESG) risks and the opportunities derived from them. And among those companies triple A, those that have more upside potential for the next 12 months they are, in this order, Adidas, Enel, Intesa Sanpaolo, Iberdrola, Allianz and ASML. All of them also receive a purchase recommendation from the market consensus collected by FactSet.

Adidas, the one with the most travel

Who now takes positions in the German sports equipment manufacturer Adidas You should see your investment revalue more than 30% in 12 months, if we listen to the estimates of the analysts. It is among the worst on the trading floor in 2021 within the EuroStoxx, losing around 16%.

In keeping with that triple A, The opinion it gives about Adidas Sustainalytics, a company already integrated in Morningstar, is also positive. This provider of sustainability data considers that the German has an ESG risk level of 13 out of 100, that is, a low level of unmanaged sustainability risks (a score between 0 and 10 indicates that these risks are negligible, while for above 30 which are considered high).

Another value that has a purchase advice, and with a potential close to 27% after dropping around 16% this year, is Enel. In June, the electricity company starred in the largest issue of bonds linked to sustainability made to date, for 3,250 million. If you look at her ESG credentials, the Italian stands out in governance: ISS (Institutional Shareholder Services) gives it a 1, the highest score for its corporate governance practices. You also get a A, the highest grade among those granted by CDP (Carbon Disclosure Project), an entity that measures the commitment of companies to the fight against climate change.

More than 26% of the upward journey is ahead of another Italian, Intesa Sanpaolo. It has a low level of unmanaged ESG risks. In fourth place we find Enel’s natural comparable: the Spanish Iberdrola, whose potential, close to 19%, is well below that of its Italian rival. Something worse than Enel also comes out in the Photo climatic: CDP gives you a A-, the second best possible grade. And its weak point, against the backdrop of the Villarejo case, is governance: ISS, which scores between 1 and 10 (1 being the best grade), gives it only a 4.

The electricity company chaired by Ignacio Galán recovered in October -in full decree Electricity- the purchase recommendation by the market consensus collected by FactSet. Analysts had not advised opening positions in it for two and a half years.

The german Allianz it should revalue in the stock market by 18% over the next year. Its degree of ESG risk is medium. With regard to the environmental pillar, it obtains, like Intesa and Iberdrola, a A-. And in governance it receives a 3, that is, the structure of its board of directors receives a kind of notable low, if we transfer these marks to the Spanish academic grading system (for this provider, 1 is the best mark and 10 the worst) .

ASML is the giant of this classification. The Dutch manufacturer of machines used to produce semiconductors capitalizes about 273,000 million euros. It is the second company with the highest market value of the EuroStoxx 50, only surpassed by LVMH. It has a low level of sustainability risks for Sustainalytics (11 out of 100, the best among these six companies). And its Achilles heel, as in the case of Iberdrola, is governance: it obtains, like the Spanish, a 4 out of 10 for ISS.