3 FTSE 100 and FTSE 250 shares I’d buy to protect myself from the climate emergency

I’m searching for the best safe stocks to buy as global warming intensifies. Here are three stocks (including a couple of FTSE 100 shares) on my radar.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Smart young brown businesswoman working from home on a laptop

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Large parts of the world are literally on fire right now due to extreme heat. The climate emergency is intensifying and this will have implications for all UK shares, from the largest FTSE 100 share to the smallest penny stock.

UK share investors need to take action to protect their wealth from this ‘new normal’. Many listed businesses face an uncertain future as our lifestyles change in response to the climate emergency.

Okay, the issue of company profits clearly pales into insignificance when experts talk about things like mass extinctions. But long-term wealth building remains an important topic too, and investors need to remain active to build capital for retirement.

Here are three shares I’m considering buying as the world’s weather patterns steadily change.

Foresight Solar Fund

A hotter climate will boost power generation from solar sources and, by consequence, the profits that renewable energy companies will make. Foresight Solar Fund Limited (LSE:FSFL) is one such share on my radar today.

Fresh data from energy think tank Ember shows this phenomenon in action. It indicates that solar power generation in Europe hit 129.2 terawatt hours in the first half of 2023. This was up 11% year on year and represented new record highs. With the heatwave tipped to carry on into August at least the dial should continue to rise.

I like Foresight Solar Fund because of its wide geographic wingspan. It owns assets in the UK, Spain, and Australia. Because of this, group earnings are less reliant on favourable weather conditions in one or two places, thus reducing risk for investors.

Keeping up solar panels and related infrastructure isn’t cheap. But I’m still convinced the business could deliver solid long-term returns as renewable energy demand booms.

Antofagasta

Rising investment in carbon-cutting technologies also means copper consumption is set to soar. The red metal’s unique qualities make it a critical material for the growth of the renewable energy and electric vehicle sectors, as the chart below shows.

Chart showing expected copper consumption.

Investing in a copper miner therefore could be a good idea. FTSE 100-quoted Antofagasta (LSE:ANTO) is one such share I’m considering buying today. It’s one of the world’s top 10 biggest producers of the commodity, and owns a large portfolio of working mines and exploration assets in Chile.

Be aware that Antofagasta isn’t immune to the problems of climate change itself, though. Indeed, drought conditions severely impacted production at the firm’s Los Pelambres mine in 2022. But on balance I think the earnings outlook here is extremely bright.

Anglo American

Mega miner Anglo American (LSE:AAL) is another safe-haven share I might buy for the climate emergency. Like Antofagasta, it provides a range of metals that make the energy transition possible. These include copper, nickel, manganese, and platinum group metals.

But its ownership of the Woodsmith project is what sets it apart from other mining stocks. The asset — which the company hopes to get up and running by 2027 — is the world’s largest-known source of polyhalite, a critical material in fertilisers.

Increasingly severe droughts, combined with a steady decline in farmable land, all mean crop yields need to rise significantly. Commodities like polyhalite will play an essential role in feeding our growing global population. I’d buy Anglo American shares even though trouble getting Woodsmith online could hamper earnings.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Foresight Solar Fund. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Smiling white woman holding iPhone with Airpods in ear
Investing Articles

Here’s how to invest £180 per week in an ISA to target a £9,343 second income

By investing less than a couple of hundred pounds each week into an ISA, this writer thinks he could build…

Read more »

Investing Articles

Here’s how I’d invest £200 per month to target a passive income of over £7,100!

Christopher Ruane walks through the mechanics of putting a couple of hundred pounds each month into shares to earn passive…

Read more »

Young Woman Drives Car With Dog in Back Seat
Investing Articles

£9,000 in an ISA? Here’s how I’d aim to turn it into a £10,207 annual second income

Our writer highlights a high-quality ETF that he thinks could help lay a solid foundation for a sizeable future second…

Read more »

Buffett at the BRK AGM
Investing Articles

With a spare £30 a week, I’d use the Warren Buffett approach to building serious passive income!

By learning some lessons from billionaire investor Warren Buffett, this writer aims to build passive income streams using modest regular…

Read more »

Investing Articles

If I’d invested £10k in the FTSE 100 25 years ago, here’s what I’d have today

Has the FTSE 100 been a winner over the last 25 years? Muhammad Cheema takes a look at this and…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

I’d aim for a million buying just 9 or 10 shares

Our writer explains why he believes careful selection of not that many quality blue-chip shares could help him aim for…

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

£7,000 in savings? Here’s how I’d aim for almost £2,000 a month in passive income

With only a few thousand in savings and £100 to invest a month, our writer considers a strategy to aim…

Read more »

Investing Articles

4 great purebred UK shares that don’t rely on the US economy

UK stocks or American shares? Despite fantastic performance from US markets in recent years, the answer may not be as…

Read more »