In the past week, the Nordic impact stocks declined another 4.7%. The U.S. election has created shocks to the stock market with some sectors performing very well, while the Nordic impact stocks have had some tough weeks. On the positive side, the CO2 and Carbon Capture sector stood out with a 7% increase during the week fueled by Enersize, CirChem AB presented its first quarter with positive earnings, and a developer of floating power systems also caught the eye of investors.

NORDIC | IMPACT Helps you to invest more sustainably in the businesses of tomorrow. We track the development of more than 100 Nordic impact companies within multiple impact sectors from small to large cap.

The impact sectors have been hit hard following the U.S. election

In the past week, there was a significant divergence between the different sectors. The CO2 & Carbon Capture rose 7% following strong performance by Enersize with a 31% increase. On the flip side, Power2X & Fuel Cells declined 9% with poor performance by Refuels NV being down 26%. Overall, 6 of the 7 sectors were in decline in the past week, and seems to be driven by sector wide declines rather than a few individual stocks.

The average return of impact stocks in the past week was -4.7%. All sectors continue to be down year-to-date and in the last twelve months. Every sector is underperforming relative to most of the global indices which have risen. Especially the Energy Production Equipment & Services sector has faced a very tough year being down -48% year-to-date. The sector consists of 25 stocks with 23 of them having declined in 2024. Vestas, the world-leading developer of windturbines, is down 51% this year. Interestingly, the Energy Production & Storage sector has performed significantly better at -17% year-to-date, although the companies in each sector have similar stakeholders.

The impact sectors the past week, year-to-date, and last twelve months

Top 10 impact stocks of the week

Enersize (31%) is a Finnish IT company that develops software for various data collection and analysis. The services are used in industrial compressed air systems, with the goal of increasing the energy savings of the company’s customers. Customers are found in a number of different industries such as the automotive industry, steel, and the electronics industry.

CirChem (25%) is an environmental technology company. The company specializes in the recycling and purification of used solvents. The recycled, purified solvents are either sold back to industry or used to produce other products, such as washer fluid. CirChem has a recycling plant in Vargön that was put into operation in 2019. In the past weeks, Circhem announced a collaboration agreement with a prominent automotive manufacturer to evaluate circular solvent recycling, and their first quarterly report showed positive earnings.

Ocean Sun (14%) is a Norwegian company operating in the energy sector. The company develops floating power systems with solar panels mounted on hydroelastic membranes. The technology is used to extract renewable energy at sea. The largest operations are in the Nordic countries and Asia, where the company’s facilities are mainly stationed.

Illustration of Ocean Sun’s floating power systems

The average return for the top 10 stocks in the past week was 11%.

The 10 best-performing stocks in the past week

TOP 10 IMPACT STOCKS OF THE YEAR

Yesterday, Volue was delisted from the Euronext Oslo Børs after being acquired. After Volue has been acquired and removed from the Euronext Oslo Børs, Everfuel is now the best-performing stock year-to-date. However, Everfuel is also about to be acquired at NOK 13 a share by Swiss Life Asset Management. 11 stocks have returned over 20% YTD, and it is exciting to see if some of them make a last sprint towards +100%. Two changes were made. CirChem and Donkey Republic moved in, while Aega and BPC Instruments moved out of the top 10 list.

The current average return of the top 10 stocks year-to-date is 34.6%. Including Volue, the return would be 42.2%. The stock was removed from the top 10 list as it is no longer tradeable.

The return for the top 10 impact stocks year-to-date

Waste Management

The waste management sector, characterized by its essential and non-cyclical nature, should present a stable investment opportunity with long-term potential, driven by increasing environmental awareness, regulatory demands, and the growing need for efficient waste disposal and recycling solutions. Despite this, the majority of the stocks have performed negatively this year. Agilyx, CirChem and Tomra Systems have +20% returns year-to-date.

Waste Management – YTD

Energy Production & Storage

The Energy Production and Storage sector offers substantial investment opportunities, as it stands at the forefront of the transition towards renewable energy sources, driven by climate concerns and technological advancements. However, Year-to-date, only 7 stocks have delivered a positive return.

Energy Production & Storage – YTD

Energy Production Equipment & Services

The Energy Production Equipment & Services provides technical equipment and machines to other energy-producing companies such as Ørsted. The sector is to some extent influenced by oil and gas price fluctuations and industry trends. Year-to-date, BPC Instruments is by far the best performer. It is eye-catching how all stocks except one in the sector have delivered a negative return. Note that Volue has been delisted.

Energy Production Equipment & Services – YTD

Power2X & Fuel Cells

The Power-to-X and Fuel Cells sector offers exciting investment opportunities in the evolving landscape of clean and sustainable energy technologies, but investors should also be mindful of the evolving regulatory and competitive landscape in this rapidly advancing field. Everfuel is the only stock with a positive impact on the sector’s performance year-to-date.

Power2X & Fuel Cells – YTD

Food & Beverages

The food and beverages sector is heavily driven by consumer demand and having strong brands is a major advantage. Investors should consider factors such as changing consumer preferences, health and sustainability trends, and global supply chain dynamics to identify promising opportunities. Year to date, 4 stocks have delivered a +25% return.

Food & Beverages – YTD

CO2 & Carbon Capture

The CO2 and Carbon Capture sector presents compelling investment opportunities for companies capturing and removing carbon dioxide from the atmosphere. It is a small sector comprising only 6 stocks, with ChromoGenics as the only stock with a positive return year-to-date.

CO2 & Carbon Capture sector YTD

Mobility

The mobility sector includes among others ride-sharing platforms and the development of electric vehicles to lower emissions and costs for consumers while increasing flexibility. Mobility is the smallest sector we track totaling 5 stocks. Donkey Republic is the best performer in 2024 and the only company in the sector with a positive return.

Mobility YTD