As the world raced for vaccines and medicines in 2020 to prevent and treat the COVID-19 pandemic, S&P/ASX 200 Index (ASX: XJO) healthcare shares had some periods of strong outperformance.

But in recent weeks that outperformance, for most, has evaporated.

ResMed and CSL share prices sliding

The ResMed Inc (ASX: RMD) share price has fallen 1.6% in intraday trading and is down by around 11% year to date. ResMed is best known for its respiratory medical devices.

Meanwhile, the CSL Limited (ASX: CSL) share price is down a significant 4.63% at the time of writing. This ASX 200 healthcare heavyweight has a historic focus on influenza vaccine development. And in 2021, CSL shares have fallen by around 10%.

By comparison, the ASX 200 is down 0.5% in intraday trading and up 1% year to date.

So what’s going on?

Why are ASX 200 healthcare shares under pressure?

It’s not just ASX 200 healthcare shares that have come under pressure in recent weeks.

The phenomenon is happening in share markets around the world. And it’s closely linked with the rollout of the coronavirus vaccine.

As Bloomberg reports:

Equity investors are steering clear of drug makers and health-care service providers as continued progress in distributing COVID-19 vaccines adds to the momentum in stocks poised to benefit most from an economic reopening.

According to the article, five out of six of the largest healthcare shares listed on the S&P 500 Index (SP: .INX) had lost ground in afternoon trading yesterday (overnight Aussie time).

ABIOMED Inc. (NASDAQ: ABMD) closed the day down 5.4% and has slipped another 1% in after hours trading.

DexCom Inc. (NASDAQ: DXCM), with a market capitalisation of US$35.5 billion, lost 5.9% by the closing bell.

Commenting on the healthcare sector’s performance, Goldman Sachs strategist Asad Haider said, “Investor conversations point to a generalist buyer’s strike across the sector that likely needs some catalyst to reverse course.”

I’m not sure what type of catalyst Haider is referring to. But let’s hope it’s not the unexpected need for even more respiratory devices and vaccines.

In the meantime, the declining share prices of both CSL and ResMed haven’t prevented several leading brokers from giving these ASX 200 blue chip shares buy and outperform ratings.

More reading

• 2 fantastic blue chip ASX 200 shares to buy
• 5 things to watch on the ASX 200 on Thursday
• Is it time to buy these 2 hot ASX healthcare shares?
• What you need to know about the CSL (ASX:CSL) dividend
• ASX 200 Weekly Wrap: Friday carnage ruins last week of ASX earnings

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Abiomed and DexCom. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended DexCom and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Australia and New Zealand Banking GrpLtd (ASX: ANZ) is outperforming after a leading broker upgraded the stock to “buy”.

The Australia and New Zealand Banking Group share price jumped 2.4% to an 18 -month high of $28.23 at the time of writing when the S&P/ASX 200 Index (Index:^AXJO) fell 0.8%.

In contrast, the Commonwealth Bank of Australia (ASX: CBA) share price gained 0.8%, the National Australia Bank Ltd. (ASX: NAB) share price added 1.8% and the Westpac Banking Corp (ASX: WBC) share price increased 0.8%.

Broker upgrades ANZ Bank share price to “buy”

The ANZ Bank share price may be getting an extra boost from Goldman Sachs. The broker upgraded the stock to “buy” as the sector’s net interest margins (NIMs) are performing better than expected.

NIMs measures how much a bank makes from loans compared to its cost of funds. It’s a key profitability measure and the outlook is bright for the sector through to FY22.

“Analysis of Canstar product pricing data suggests that deposit pricing already announced should provide about a 5 bp [basis points] tailwind to sector FY21 NIMs, with the banks potentially having a further 3 bp of NIM tailwinds thereafter if they move their online savings and term deposits rates down to 10 bp,” said Goldman.

“Drawing down on their remaining term funding facility (TFF) will add about another 2 bp to NIMs, and there’s another 4 bp of NIM tailwinds to come through over five years if current senior unsecured spreads hold.”

Margin pressure a longer-term issue

These factors are enough to offset the margin squeeze from structural changes for another year or so.

“While funding and deposit mix might provide some offset to these structural NIM headwinds, it’s difficult to envisage a scenario in FY23-25E in which margins are not down cumulatively 10-15 bp,” added the broker.

“We suspect any outperformance against this estimate would likely require either higher cash rates, an alleviation of mortgage competition, or mortgage back-book repricing.”

Why ANZ Bank shares are worth buying now

Having said that, the longer-term margin risks isn’t enough to dissuade Goldman from urging investors to buy the ANZ Bank share price now.

This is because the broker believes management will provide an update on the bank’s cost targets at its first half results in May. This could be a positive catalyst for the shares.

Further, ANZ Bank’s balance sheet is strengthening and its first quarter trading update showed its well placed in the current NIM environment.

It also helps that the ANZ Bank share price is trading at around a 20% discount to its peers.

Goldman’s 12-month price target on the shares is $29.01.

More reading

• What do big brokers think about the Afterpay (ASX:APT) share price this week?
• Why are ASX tech shares like Afterpay (ASX:APT) so volatile?
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises, Rio chair will leave, Nine gets a new CEO
• Aussie GDP numbers deliver a nice 3.1% surprise

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Myer Holdings Ltd (ASX: MYR) share price is having a woeful day since the release of its first-half results. During late-morning trade, the Australian department store group’s shares are down 10% to an intraday low of 30 cents.

Below, we take a closer look to see how Myer performed for the H1 FY21 period.

What were the financial highlights?

The Myer share price is moving south as investors digest the company’s latest results.

According to its release, Myer advised that it is continuing to weather the difficult trading conditions caused by COVID-19. However, an eventual recovery is on the horizon once the pandemic subsides.

It noted that for the six months ending 23 January 2021, total group sales stood at $1,398 million. This reflects a 13.1% decline over the prior corresponding period (pcp). In particular, this caused by store closures and reduced CBD footfall.

Comparable CBD store sales sunk 32.2% due to a restricted workforce, impact on tourism, and subdued confidence from continued shutdowns. However, not all was bad as its online sales division surged to $287.6 million, up 71% over the pcp. Improved checkout and browser experience led to the group’s profit.

The Cost of Doing Business (CODB) came to $325.2 million, which resulted in a 20.9% drop compared to H1 FY20. The company continued to execute cost reductions whilst investing in its online segment. The government’s JobKeeper wage program was seen as crucial in maintaining Myer’s workforce.

Earnings before interest, tax, depreciation and amortisation (EBITDA) slightly backtracked to $214.6 million, down 1.7% from this time last year.

Net profit after tax (NPAT) improved to $42.9 million, a jump of 8.4% on the prior comparable term.

Myer closed the period with a net cash position of $201.1 million. Indeed, a substantial increase from the $7.9 million recorded in FY20. This allows the company options to re-invest in its digital segment that can help accelerate future growth.

The board stated that it will keep its dividend suspended in light of the uncertain economic environment.

Management commentary

Myer CEO and managing director John King touched on the company’s results, saying:

The focus remains on profitable sales and executing the Customer First Plan, which has been adapted to respond to COVID-19 by accelerating, re-sequencing and expanding various initiatives. The strengthened balance sheet provides a solid platform for investing in our digital growth engine which represents a significant opportunity.

The Customer First Plan is an overhaul of the business’ approach to improving merchandise offerings, enhance customer experience and satisfaction.

About the Myer share price

The Myer share price is down around 13% over the last 12 months, after going on a rollercoaster ride. The company’s shares hit a low of 8.3 cents last March before trekking to a 52-week high of 41.5 cents in November.

Based on the current share price, Myer commands a market capitalisation of around $246 million.

More reading

• These are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX
• Here are the 10 most shorted shares on the ASX

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The ARB Corp Ltd (ASX: ARB) share price is inching upwards today after the motor vehicle accessory maker announced an acquisition.

At the time of writing, the ARB share price is up 2.52% to $34.53. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is jostling around the negative 1% mark.

Breaking into the UK

Following the recent successes of ARB’s New Zealand acquisitions, the company now is breaking into the UK market.

This morning ARB announced the acquisition of Auto Styling Truckman Group Limited, commonly referred to as Truckman. Similarly, Truckman makes and distributes auto accessories throughout the United Kingdom.

As aligned with the company’s strategy, Truckman also brings product diversification to ARB. Due to the fact that they mainly focus on rear vehicle accessories (canopies, bed liners, etc.)

All staff and management will be retained as operations continue as per usual.

The deal struck for the acquisition comes to a maximum net cash purchase price of GBP$21.9 million. In other words, roughly A$39.3 million. Approximately A$14.2 million of the maximum acquisition price is subject to performance hurdles.  Truckman’s management will need to meet these over the next 3 years.  

Impacts on ARB’s future performance

ARB stated that the acquisition is being funded from existing cash reserves. Given the company’s cash levels were around $85 million at the end of December, there should still be plenty of cash left to spare. Additionally, ARB reported solid revenue and profit growth in its recent half-year results, so the money should keep flowing in.

ARB’s ownership began on 2 March, with Truckman being immediately profitable.

Share price snapshot

The ARB share price has performed exceptionally in the past 12 months – climbing 102%. Border restrictions left many to explore more locally, possibly veering off the beaten track. Hence, money being spent on accessorising the adventure vehicle of choice certainly experienced a bump. 

More reading

• 3 ASX 200 shares that doubled profits this reporting season 
• The ARB (ASX:ARB) share price slides following strong half-year results
• Why ARB, Domain, Redbubble, & Treasury Wine shares are sinking today
• Real reporting season surprise isn’t about profits but dividends

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Element 25 Ltd (ASX: E25) share price is dropping today, despite positive news. At the time of writing, the manganese producer’s share price is down 2.1%, trading at $1.88.

The change came after the company announced this morning that its Butcherbird Project is nearly ready to begin production of ore.

The Element 25 share price has had a monumental year. It’s currently holding a whopping 1,132% return over the last 12 months.

By comparison, the All Ordinaries Index (ASX: XAO) is up by 9%.

What’s moving the Element 25 share price?

Today’s announcement

 Element 25 announced this morning that it will begin producing ore later this month, with pre-commissioning activities commencing today.

The project is expected to be powered up by the end of the week. Dry commissioning will then begin, with the mine finalised and productive by second half of March 2021.

Element 25 believes manganese is becoming an increasingly important ingredient in the making of batteries to power electric vehicles.

It has noted potential supply constraints on both nickel and cobalt, which could cause battery manufacturers to turn to high manganese cathodes to produce the cathode material required for electric vehicles.  

About the Butcherbird Project

The Butcherbird Project, located in Western Australia, will eventually produce high purity manganese sulphate monohydrate to power electric vehicles.

The project’s advanced flowsheet development work confirmed a unique ambient temperature and atmospheric pressure leach process for the ore. It plans to combine this with offsets to target the world’s first Zero Carbon Manganese™ for electric vehicle cathode manufacture.

The company is planning to integrate renewable energy into the project’s energy needs over time, hoping to eventually reach a zero-carbon footprint.

Element 25 holds 100% ownership of the Butcherbird Project, having footed a $17 million bill for the first stage of development.

A Pre-Feasibility Study conducted by Element 25 highlighted the potential for significant expansion of the Butcherbird Project’s initial production within the first 12 months of operation.

More reading

• What is reflation, and why is everyone talking about it?
• What’s with the 4DMedical (ASX:4DX) share price today?
• What do big brokers think about the Afterpay (ASX:APT) share price this week?
• Up 395% in 1 year, why the DigitalX (ASX:DCC) share price is gaining again
• Future proofing: Should you invest in a sustainable ASX portfolio?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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‘Reflation’ has become something of an ASX buzzword over the past month or so. Everyone is talking about in somewhat dire terms as well, with questions like “what will reflation do to ASX shares?”. Yet, relation doesn’t sound like a bad thing. So what is this boogeyman, and why are investors worried?

‘Reflation’ usually refers to economic growth coupled with rising inflation. It normally implies the presence of both but made possible by government intervention. That doesn’t sound so bad, you might say. Apart from the inflation part, that sounds rather manageable. And it’s true. A ‘reflationary economy’ would probably be a good thing for most Australians. But not so much for the ASX investor. So why are investors seemingly scared of a growing economy? That should be a good thing right?

Well, only the ‘growth’ part is good. It’s the inflation part that’s got everyone worried. Up until now, we’ve enjoyed a rebounding economy with ultra-low inflation and interest rates. Just yesterday, in fact, we reported on how the Australian economy grew by a stunning 3.1% over the last quarter.

Growth is good, inflation not so much

Normally, inflation isn’t a good thing for investors, but it’s not catastrophic if it’s tied to economic growth. If prices are rising across the board, many (though not all) companies will be able to raise the prices of the goods and services they sell without too much issue.

But it’s what comes with inflation that has people worried in 2021. And that’s higher interest rates. Higher interest rates are bad for the share market because it increases the appeal of other (safer) interest-rate-sensitive assets like term deposits and government bonds. An ASX dividend share yielding 3% looks pretty good against a savings account yielding 0.8%. If that savings account yields 4%, that dividend share doesn’t look so appealing. In this way, interest rates are the financial equivalent of ‘beer goggles’ for the share market.

A report from the Australian Financial Review (AFR) this week sums it up nicely:

Now the risk is that inflation resurfaces, and bond yields rise more sharply than anticipated, overwhelming the rise in earnings during a recovery. The impact could easily end the rally of 2020, leaving markets suffering withdrawal symptoms despite a global economic boom.

It seems a little unfair, doesn’t it? The possibility of falling share prices at the same time as a “global economic boom”… But remember, investors have been enjoying exactly the opposite of that over the past year. The global economy crashed, but share markets boomed. Sometimes, the chickens just have to come home to roost.

More reading

• What’s with the 4DMedical (ASX:4DX) share price today?
• What do big brokers think about the Afterpay (ASX:APT) share price this week?
• Up 395% in 1 year, why the DigitalX (ASX:DCC) share price is gaining again
• Future proofing: Should you invest in a sustainable ASX portfolio?
• Brace for even more new ETFs to hit the ASX

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The 4DMedical Ltd (ASX: 4DX) share price shot up 4.6% in opening today before falling into the red early this afternoon. This, after the medical technology company announced it had received a government grant and would begin a capital raising program.

The 4DMedical share price opened at $1.81, up 8 cents on yesterday’s close but has since retreated to $1.73, putting it flat at the time of writing.

Shares in the company were placed in voluntary suspension for 2 days earlier this week, in anticipation of the news.

Why is the 4D Medical share price moving today?

In today’s release, the company announced a consortium led by 4DMedical, the Australian Lung Health Initiative (ALHI), has been awarded a $28.9 million federal government grant.  The company said the cash will be used to develop “the world’s first” lung function scanners to provide “safe, easy and rapid lung analysis” for both adults and children.

The grant is a part of the Federal Government’s Medical Research Future Fund (MRFF) – a $20 billion program aiming to “transform health and medical research”. The government will allocate the funding over a 5-year period.

4DMedical has exclusive commercial rights for the XVD Scanners – including intellectual property rights. The medical technology company will receive 100% of the revenue from scanner sales.

In conjunction with the grant, 4DMedical will also complete a $40 million capital raising project. It will list 25.8 million new shares on the ASX at a price of $1.55 each. Existing shareholders will be able to apply for these shares, too. The cap for new shares for existing shareholders is a $30,000 value.

The company expects trading of new shares to begin 15 March. The issuance will occur on 7 April.

Words from the CEO

Commenting on the MRFF funding, 4DMedical founder and CEO, Andreas Fouras, said:

We’re thrilled with the huge vote of confidence afforded by the competitive assessment process, as we aim to deliver safe and accurate lung health technology to those who need it. I thank our partners on this project for their outstanding support as we look forward to bringing this Australian innovation to fruition.

[The capital raising initiative] will provide us with the funds needed to execute the long-term commercialisation strategy for XVD Scanners, which will open up an additional revenue stream for the business…

…[It] also provides us with balance sheet flexibility for future growth opportunities that can accelerate the commercialisation of the XV LVAS product…

The company estimates the lung diagnostics market at $40 billion a year.

4DMedical share price snapshot

This time last year, the 4DMedical share price was swapping hands at $1.59. At today’s price that calculates at 8.49% growth. However, the 4DMedical share price has been trending downwards for the year-to-date. The share price in the new year was $2.44 – representing a 29.3% fall.

4DMedical’s market capitalisation is $307 million.

More reading

• 4D Medical (ASX:4DX) share price rises on maiden half-year results

Motley Fool contributor Marc Sidarous has no position in any of the shares mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Brokers have run the ruler for the Afterpay Ltd (ASX: APT) share price over the weekend and come up with new price targets. This comes after the company’s half-year results announced last Thursday and a 20% slump in share price after hitting an all-time record high of $160.05 on 11 February. 

Mixed views on the Afterpay share price 

On 1 March, Macquarie Group Ltd (ASX: MQG) rated the Afterpay share price as neutral with a $140.00 share price target. Macquarie remains cautious on Afterpay shares as the company missed revenue growth estimates. Neither updates regarding its imminent launch into Europe nor established Asian base was enough to excite the broker. Its neutral stance was largely driven by the increasing competition in the buy now, pay later sector. 

On the same day, Ord Minnett noted that it was bullish on Afterpay results with a buy rating and target price of $150.00. The broker was particularly pleased with its strong growth across key North American and UK regions. It also sees value in the company’s new Afterpay Money product which is expected to launch in 2021. The app will help Australians manage their money with features including mobile banking, a linked Afterpay account and an Afterpay loyalty program. 

On 3 March, Citi was neutral on Afterpay shares with a $124.80 price target. The broker was upbeat about the company’s new products, features and geographic launches as a catalyst to boost sales and profit margins. However, it also acknowledged that e-commerce sales could slow in a post-COVID world and rising competition could pose a risk to growth and margins. Taking into consideration both the catalysts and risks, Citi maintained its cautious neutral rating and flat price target. 

Afterpay eyes geographic and product expansion to drive growth 

Beyond Afterpay’s triple-digit growth reported in its half-year results, the company has taken aim to expand its geographic footprint and product suite in the near-term. 

The company noted that Canada was a region that continues to ramp up with new merchants and customers. The UK has been a very successful region for both Afterpay and its ASX BNPL rivals. However, the rest of Europe remains largely untouched. Afterpay notes that its acquisition to launch into 4 European countries is imminent and on track to complete in Q3 FY21. 

Finally, Afterpay plans to launch an “Afterpay Money” app to help Australians manage payments and savings while being linked to an Afterpay account and Afterpay loyalty program. Users can deposit money into the account, which will be held on the Westpac Banking Corp (ASX: WBC) balance sheet.

Afterpay believes that this will create a captive ecosystem that will enable it to launch new products, services and revenue streams. 

More reading

• Why are ASX tech shares like Afterpay (ASX:APT) so volatile?
• The Flexiroam (ASX: FRX) share price rockets 35% after new announcement
• The ANZ (ASX:ANZ) share price just hit a 52-week high
• Here’s why brokers like these 2 small cap ASX tech shares
• Exploring the golden window of opportunity for ASX ESG investors

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Digitalx Ltd (ASX: DCC) share price is on the rise today, up 5.5% in late morning trade. At the time of writing, the Digitalx share price is trading for 9.5 cents, up 1.06%.

This comes after the blockchain focused technology and investment company reported commitments for its capital raising. 

What did DigitalX report about the new capital raising?

DigitalX shares are pushing higher after the company reported it has secured commitments for $8.8 million to fund its growth plans. The capital was committed by US institutional investors not yet invested in DigitalX.

The placement was at a share price of 9 cents, slightly below the current 10 cents per share. DigitalX said it will also issue investors warrants, exercisable at an exercise price of 10 cents.

Specifically, the first ASX-listed Bitcoin-related company said it plans to use capital raising to grow its funds under management. Additionally, it also aims to aid in developing and implementing its Drawbridge RegTech product. Drawbridge, according to DigitalX, “supports listed companies in better managing their compliance and corporate governance policies”.

Comments from the director

On the capital raise, Leigh Travers, executive director of DigitalX said:

With tailwinds in the Bitcoin and digital asset market and the potential growth opportunity for the funds management division, the company believes it is an appropriate time to raise additional funds to accelerate the business…

We believe that these additional funds will allow us to expedite a number of initiatives identified in our recent strategic review across the digital asset funds management business as well as for our RegTech business led by Drawbridge.

DigitalX share price snapshot

Indeed, investors who bought shares in DigitalX a year ago today will be sitting on intraday gains of 390% at the time of writing. By comparison, the All Ordinaries Index (ASX: XAO) is up 9% in that same time.

Year-to-date the DigitalX share price is down 2%.

More reading

• DigitalX (ASX:DCC) share price soars 18% following Bitcoin update
• These 3 ASX shares invested in Bitcoin before Tesla (NASDAQ:TSL)

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are as many different approaches to investing as there are investors, and no approach is inherently correct. But one approach to investing is gathering quite a buzz lately.

Environmental, social, and governance (ESG) investing considers the sustainability and ethics of companies above other measures. This approach is relatively new and has received praise from some experts and investment firms, but not everyone is a believer.

Who is ESG investing good for?

Those that argue for ESG investing believe it is the best way to future proof your portfolio. Those concerned by climate change, environmental destruction, and social inequality might find investing in companies with sustainable practices eases their minds.

If this sounds like you, you’re not alone. BlackRock surveyed investors all over the globe and found that 54% believe sustainable investing is fundamental to processes and procedures.

Immediate past president of the Myer Foundation Martyn Myer and global head of responsible investment at Mercer Helga Birgden spoke to Motley Fool about their approach to ESG investing on the ASX on Wednesday.

“If you invest with ESG principles in mind in a sophisticated way, you invest with economic and social tailwinds behind your investment instead of headwinds,” said Martyn Myer.

“It means that lots of things you’re investing in are growing far faster than GDP. So, you’re investing in growth, but for a very sound reason.”

Helga Birgden added:

One of the biggest concerns for investors is about what should be in their portfolios in the light of current policy commitments in Australia. We are framed to reduce our pollution by 15% by 2023 if we are to meet the Paris Agreement goal. That’s only 2 years away. And 45% absolute carbon emissions reductions in the next 9 years. For investors that’s pretty significant.

Who shouldn’t take an ESG approach to investing?

Often, a sustainable approach to investing is characterised by long-term gains with little short-term satisfaction.

As UK Firm Newton Investment Management commented in Investment Magazine, those who want a quick, passive gain may not find their needs fulfilled by conventional ESG investing.

To be done right, ESG investing should be an active form of investing with a lot of research and maintenance involved, reasoned Newton Investment Management.

If that doesn’t sound like your cup of tea, there’s no need to worry. You may find that you’re already investing in ESG-focused companies.

In 2019, the Australian Council of Superannuation Investors that 76% of the companies listed on the ASX 200 already report at least a moderate level of meaningful ESG management.

Where to start when looking for ESG investments on the ASX?

There are plenty of companies on the ASX that align with the principles of ESG investing. Here are 3 ASX shares currently focused on sustainability across various industries.

Secos Group Ltd (ASX: SES)

Secos Group is a producer of sustainable packaging materials. It has stockists in 20 countries and a successful contract with Woolworths.

The company has had some incredible gains this year. Currently, its share price has risen by 51% year to date, and by an incredible 362.6% over the last 12 months.

Wide Open Agriculture Ltd (AXS: WOA) 

Wide Open Agriculture Ltd is a regenerative food and farming company aiming to make eco-friendly food products. It’s making gains in the development of an Australia-made plant-based protein from Western Australian lupin.

Wide Open Agriculture’s share price is down 20% year to date but is up by a whopping 400% over the last 12 months.  

Neometals Ltd (ASX: NMT) 

Neometals is a lithium mining company working towards powering electric vehicles and clean energy storage initiatives. It has also partnered with German plant manufacturer SMS group to create Primobius, a lithium-ion battery recycling program.

Neometals’ share price is up 24% year to date and 84.6% over the last 12 months.

More reading

• Up 330% in a year, Secos (ASX:SES) share price slides on results
• Here’s why the Neometals (ASX:NMT) share price is running higher

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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