In the past week, the average return for the Nordic impact stocks was -2.1%. The Danish developer of hydrogen supply and refueling solutions received a voluntary cash offer of NOK 13 per share by Swiss Life Asset Management with a 52.9% premium. Humble Group presented new financial targets. 3 companies were replaced in the top 10 list of best-performing stocks year-to-date.

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.

All sectors were in decline last week except for the Power2X & Fuel Cells

In the past week, all sectors except for the Power2X & Fuel Cells declined. A strong performance in Everfuel drove the Power2X & Fuel Cells sector due to a cash offer by Swiss Life Asset Management at NOK 13 per share corresponding to a 52.9% premium vs. the closing price the day before the offer. On the other hand, the CO2 & Carbon Capture sector and Energy Production Equipment & Services fell 4-5% each mainly driven by Otovo (-21%) and Bergen Carbon Solutions (-19%) following earnings in the latter.

The average return of impact stocks in the past week was -2.1%. All sectors continue to be down year-to-date; thus, they are underperforming relative to the majority of global indexes that have risen. Keep in mind that many of the impact stocks are small caps, which have generally underperformed relative to large caps year-to-date.

Overview of the performance of each sector the past week

Top 10 impact stocks of the week

Everfuel A/S (49%) is a Danish developer of products and related technical systems for hydrogen supply and refueling solutions for heavy vehicles and industrial operators. The company has established distribution facilities around the global market with the largest presence in the Nordics and Europe. On the 28 of August, the company entered into a transaction agreement where Swiss Life Asset Management AG will acquire all shares in Everfuel at NOK 13 except shares owned by the rollover shareholders. The stock traded at NOK 8.5 before the offer thus corresponding to a 52.9% premium, while it currently trades at NOK 12.68. Therefore, there is still a 2.5% upside if the offer is accepted. (Link).

EcoRub AB (22%) is a greentech company that produces recycled rubber and plastic material for injection molding, extrusion and calendering. The company’s recycled materials are developed and produced with material properties that include materials with the elasticity of rubber to the stiffness of hard plastics. The stock rose following earnings with improved results although the company is still losing money.

Humble Group AB (14.5%) is a Swedish group focused on food and health. Through research and development, the group provides ingredients, process technology, and finished products for the manufacturing industry, with sales of several different types of sugar and calorie-reduced foods. Last week, the company presented new financial targets including a target of 15% revenue growth each year, an EBIT-margin of at least 10%, and net debt to EBITDA of less than 2.5 times.

The average return for the top 10 impact stocks last week was 15.4%, which is higher than last week’s 10.4%.

The 10 best-performing stocks in the past week

TOP 10 IMPACT STOCKS OF THE YEAR

Volue continues to be the best-performing stock year-to-date with a 96% return. Thus, no stock has delivered a 100% return. Let’s see if that changes next week. The top 10 list usually stays quite consistent, however, last week there were 3 changes! Cell Impact, BPC Instruments, and Tomra Systems moved out, while Everfuel, Chromogenics, and Agilyx moved in.

The current average return of the top 10 stocks year-to-date is 43.9%.

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

All sectors 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, Tomra Systems, and Scandinavian Enviro Systems have created the largest return 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. Year-to-date, 8 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, Volue is by far the best performer.

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. Cell Impact and Everfuel are the only stocks to have had a positive impact on the sector 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, 2 stocks have delivered a +40% 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 best and Capsol Technologies as the second best-performing year-to-date. Although it has dropped, it is doing significantly better than the rest of the sector.

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 closely followed by Havila Kystruten AS.

Mobility YTD