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The Great Reset: Wall Street Undergoing A $120 Trillion Transformation

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LONDON – Big money is turning its back on companies that aren’t conforming to one simple idea. Sustainability. And it’s fueling one of the biggest transfers of capital the world has ever seen.  Mentioned in the Dec. 21 commentary includes:  Alphabet Inc. (NASDAQ: GOOGL), NVIDIA Corporation (NASDAQ: NVDA), Enphase Energy, Inc. (NASDAQ: ENPH), NextEra Energy, Inc. (NYSE: NEE), NIO Limited (NYSE: NIO).

In fact, within a year, 77 per cent of institutional investors will stop buying into companies that aren’t, in some way, sustainable. And the new King of Wall Street is leading the charge.

BlackRock, with over $7 trillion in assets under management, says its clients will double their ESG investments in just five years. Money managers on the Street are saying climate change is their top concern, and a ‘leading criteria’ when determining where they put their money to work.

Sustainable assets already account for $17.1 trillion, but there could be as much as $120 trillion up for grabs. And that’s exactly why sustainable stocks are outperforming the market. 

They are the new go-to investment but could be far better than gold. This sector is a safe haven in that the road to sustainability is long. And it’s not just Big Money’s downside protection against ESG-related risks, many are money-makers. 

While Big Money is busy scrambling for somewhere to park this $120 trillion that’s up for grabs, it could be looking for something like Facedrive (FDFDVRF) -a tech-driven, multi-vertical, next-gen company with an ESG-focused portfolio that just pulled off a major coup with the acquisition of Washington, DC-based Steer–a high-end EV subscription service that plans to get even more EVs on the road, and even to upend the way we think about car ownership altogether. And this isn’t the only vertical that ties Facedrive into a multi-billion-dollar industry.

It’s tied to the $5-trillion global transportation industry, the $9 trillion healthcare industry, the $850-billion airline industry, the $600-billion major league sports industry and the $26-billion food delivery segment … 

From the world’s first carbon-offset ride-sharing platform to an electric vehicle subscription service…Facedrive is rethinking the entire concept of car ownership. And ESG investors are loving it. And its “people and planet first” motto fits in perfectly with the new kings of Wall Street. 

From Climate Naysayers to COVID Believers: Money Talks

Today’s institutional investor is looking for the value that only high-tech sustainability, good governance and social impact can deliver. In 2020, these are the criteria that could make the difference between making money and losing money.

COVID has hastened that even more, with PwC noting that “public awareness of ESG-related risks has catapulted climate change and sustainability to the top of the global agenda” and that COVID has brought “the real-life impacts of overlooking ESG factors into the spotlight”. And that’s why BlackRock CEO Larry Fink says that “awareness is rapidly changing, and I believe we are on the edge of a fundamental reshaping of finance”.

That’s a multi-million-dollar reshaping of finance. And this is exactly where Facedrive steps up to the plate, and where giants like Uber and Lyft failed. Uber and Lyft disrupted the hundred-year-old taxi dynasty completely, but they ignored the growing sustainability trend.

Facedrive saw the gaps, and created a roadmap for the ride-hailing future. It was the first to offer riders a choice of EVs and hybrids, and the first to plant trees to offset its carbon footprint. It’s the first carbon-offset offering in this space. But that was only the beginning: 

When you combine the $5 trillion global transportation industry with an energy industry whose renewables sector is growing dramatically, you get one of the most lucrative marriages of industry yet Facedrive’s Steer, backed by an Exelon (EXC) subsidiary, is planning the biggest disruption the private automobile industry has seen in decades. 

In its plan to disrupt the auto industry, Steer offers a seamless, hassle-free technology that gives subscribers access to their own virtual garage of low-emissions vehicles and EVs. For Facedrive, the deal includes a $2-million strategic investment by Exelon’s wholly-owned subsidiary, Exelorate Enterprises, LLC. 

5 Major Acquisitions in 5 Months

Almost every month is a new acquisition or collaboration for Facedrive, and no industry is out of bounds as long as it is driven by tech and in line with the “impact investing” megatrend. 

In September, it was Steer–a huge move backed by an energy giant. In August, it was the star-studded acquisition of Tally Technologies, the high-tech major league sports predicting startup founded by NFL superstar Russel Wilson and funded by Global tech leaders.

In July, Facedrive stormed another space–the rapidly growing food delivery business that is now being defined by merger mania. Facedrive acquired assets of Foodora Canada—until then a subsidiary of global giant Delivery Hero–along with 5,500 restaurant partnerships and hundreds of thousands of active members. Facedrive Foods now operates out of 19 cities in Canada, with an eye on expansion into the US markets in the near future.

It has also included Amazon itself, and Canadian telecoms giant Telus, both of whom were added to Facedrive’s Corporate Partnership Program in June. Both Amazon and Telus will be getting corporate pricing and services from Facedrive’s carbon-offset rideshare and food delivery platform. 

Follow the Money

The biggest names on Wall Street are shifting their capital, in big numbers, and these are the ESG verticals they’re looking for. Fidelity has called 2020 a “bumper year for sustainable investing”. Even though ESG is nothing new, COVID helped turn what was a “relatively niche strategy” into “one of the most significant developments on the investment landscape in recent memory”.

Retail investors may be looking at who will recover first once the COVID dust settles, but the big capital will be looking at who didn’t need to recover. They’ll be looking at stocks like Facedrive (FD, FDVRF), where the deal flow is as fast as the trillion-dollar megatrend itself. 

Other companies betting big on the ESG boom:

Alphabet Inc. (GOOGL) is one of the leaders in the Big Tech push to go green. Not only is Alphabet powering its data centers with renewable energy, it is also on the cutting edge of innovation in the industry, investing in new technology and green solutions to build a more sustainable tomorrow.

Alphabet CEO Sundar Pichai explained, “We are committed to doing our part. Sustainability has been a core value for us since Larry and Sergey founded Google two decades ago. We were the first major company to become carbon neutral in 2007. We were the first major company to match our energy use with 100 percent renewable energy in 2017. We operate the cleanest global cloud in the industry, and we’re the world’s largest corporate purchaser of renewable energy.”

Alphabet has seen its share price increase by more than 25% this year alone, and that’s no easy feat for a company worth over a trillion dollars. And with Big Tech literally building the world around us, it’s likely to continue to grow for the foreseeable future.

Nvidia Corporation (NVDA) has made major progress towards a more sustainable tomorrow. But what makes NVIDIA even more special is that it is tackling the ESG trend on all fronts. In fact, it was ranked as one of the world’s top 100 companies to work for due to its incredible working conditions, hiring practices and professional development programs. In addition to its ranking as one of the world’s top companies to work for, it was also ranked on MIT Tech Review’s 50 Smartest Companies list and the Human Rights Watch’s Corporate Equality Index.

This year, Nvidia has done something that many other companies have struggled to do. Not only has it stayed afloat in one of the most trying years in recent history, it has thrived. Since January, Nvidia’s share price has increased from $293 to $529, representing a noteworthy 80% increase in value.

Renewable energy providers are some of the top picks for ESG investors, as well, but few have performed as well as Enphase Energy (ENPH). Enphase is a Fremont, California-based company that designs and manufactures software-driven home energy solutions used in solar generation, home energy storage, and web-based monitoring and control.

ENPH reported a large Q2 GAAP loss with GAAP EPS clocking in at -$0.38, a good $0.44 below Wall Street’s consensus. The loss was mainly due to a $59.7M charge related to fair value changes related to convertible notes issued in March 2020.

Despite the tough first half of the year, however, Enphase has remained a favorite on Wall Street. Year-to-date, Enphase has seen its share price rise by a massive 472%, and it’s only just getting started. As the renewable push kicks into high gear, and with the United States expected to spend over $1.7 trillion on green energy initiatives over the next decade, Enphase might just emerge as one of the biggest winners.

NextEra Energy (NEE) is another shining star in the renewable world. NextEra is the world’s leading producer of wind and solar energy, so it’s no surprise that it has received some love from the ‘millennial dollar.’

In 2018, the company was the number one capital investor in green energy infrastructure, and fifth largest capital investor across all sectors. No other company has been more active in reducing carbon emissions. And they’re just getting started. By 2025, the company aims to reduce their own emissions by 67 percent while doubling their electricity production from a 2005 benchmark.

Though it’s price movement hasn’t been as exciting as Enphase, it has remained on a consistent upward trajectory. In fact, long-term investors who bought in just 5 years ago would be sitting pretty on 300% returns. And the icing on the cake? It pays dividends.

No one can mention ESG investing without talking about the EV boom this year. While Tesla has dominated headlines, however, Nio Inc. (NIO) has been making major moves. Though many analysts and even the most experienced traders were ready to leave it for dead just a year ago, the Chinese Tesla rival shocked markets, blowing away Wall Street estimates, and most importantly, keeping its balance sheet in line. And thanks to its efforts, the company has seen its share price soar from $3.24 at the start of 2020 to a high of $54.39 earlier this week, representing a stunning 1578% return for investors who have held on strong.

Nio has made all the right moves over the past year to win over investors and turn heads on the streets and in the marketplace. On November 18th, NIO revealed a pair of sedans that even the biggest Tesla die-hard would struggle to pass up. The vehicles, meant to compete with Tesla’s Model 3, could be just what the company needs to pull back control of its local market from Elon Musk’s electric vehicle giant.