15 stocks to buy as ESG investment boom continues until 2021, says Morgan Stanley

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The Sustainable and ESG Investment Revolution is set to continue in 2021, with investors looking for the next wave of opportunities,

Morgan Stanley

As they disclosed 15 shares to buy, strategists said.

Investment bank strategists led by Jessica Allsford said the pace of ESG-related performance may slow in 2021, which they expect to depreciate, considering the correlation with quality stocks. However, they noted that long-term structural trends that benefit ESG names and codes are “only likely to increase”. Morgan Stanley’s global strategic team preferred rotation names instead, which were 10 of their top 15 stock picks.

ESG refers to environmental, social and corporate governance, which are three factors that measure the sustainability and social impact of investment in an organization.

Step:The Biden era can be a boon to sustainable investment

With inflows to ESG funds rising 102% year-on-year, November inflows averaged $ 47 billion compared to $ 13 billion in 2019, with strategists expecting “even more” in 2021.

Morgan Stanley outlined the stakes he has revealed for the European Green Agreement — a set of policies aimed at neutralizing Europe’s climate by 2050 – and for possible climate-policy reform under China’s administration and China’s net zero aspirations. By 2020, these shares will be more than 20% in Europe, 46% in the United States and 77% in Asia. The range of performance was wide, so-called ‘green pure plays’ like electric-vehicle makers

Tesla

And

Neo

And the Hydrogen-Fuel-Cell Company

Plug Power

Among the strong.

Step:Battery electric vehicle sales are projected to account for 31% of the global market by 2030, according to Morgan Stanley.

“We expect the green theme to continue in 2021, but after strong performance this year we can see the suspension of‘ pure plays ’and investors looking for the next wave of opportunities,” they said.

Asking investors to choose themes, Morgan Stanley’s 15 stocks offer a way to play seven global decarbonization trends. In Europe they chose the energy technology company

Siemens Energy

For exposure to renewable and gas and German chip maker

Infinion,

Given its “command level in power semiconductors” used in electric vehicles. Of Germany

Covestro

It has also been featured as a leading manufacturer of hard foams for insulation in buildings and increasingly used in electric vehicles.

In the United States, they wanted a global energy company

AES,

Citing its change in the development of renewables and storage, and the automobile-parts company

Optive

Its growing focus on electric vehicles. In Asia they chose the electric-vehicle-battery manufacturer

LG Cm

And solar scale manufacturer

Longy Green Energy Technology.

The strategists chose five stocks related to sustainable consumption, with governments turning their attention to food and agriculture. Their choices include South Korean food company Agricultural Equipment Manufacturer Dere

C.J. Siljedong,

And of China

Bluestar Addissio

For its products that provide nutritional solutions for animal feed. Aluminum-drink-can maker

Paul Corp.

And Thailand

SCG packaging

Created the list by offering alternatives to single-use plastics and packaging.

Finally, they highlighted three stocks as a way to play the overall structural development theme of Sustainability and ESG – Asset Manager.

Amundi,

Experimental and research experts

Console Veritas,

And the American Data Analysis Institute

Verisk

For its climate-data offering.