Could Brickworks (ASX:BKW) shares be a greener investment than first thought?

How does Brickworks stack up for environmentally conscious investors?
The post Could Brickworks (ASX:BKW) shares be a greener investment than first thought? appeared first on The Motley Fool Australia. –

When investors think ‘green’ or environmentally sustainable investments, Brickworks Limited (ASX: BKW) shares likely aren’t the first to come to mind. The 91-year-old company has evolved greatly over its tenure, though its core brickmaking operations have been carried all the way through.

Today, Brickworks operates 45 manufacturing plants, producing over 2,000 different brick and building products spanning 17 brands. With such large-scale operations, it may not come as a surprise that the company consumed 4.1 petajoules of energy (equivalent to 77,900 homes) in FY21.

However, as discussed at the ASX CEO Connect conference yesterday, the company has some green credentials.

Green ways of doing business

There are many companies on the ASX that are easily distinguishable as environmental, social, and governance (ESG) focused.

Such companies might include Australian technology company Calix Ltd (ASX: CXL), which is working on CO2 capture and battery tech. Another example might be Genex Power Ltd (ASX: GNX), which owns and develops renewable energy assets.

Alas, Brickworks shares would seem like an atypical inclusion among these green ASX-listed peers. Though, as managing director Lindsay Partridge pointed out at the ASX CEO Connect conference yesterday, bricks remain to be one of the most energy-efficient building materials.

Adding to this, Partridge stated that Brickworks’ bricks are carbon neutral after 9 months of installation. Considering that the clay bricks are guaranteed for 100 years, the product is attractive from a carbon-neutral perspective.

As such, the company foresees a strong demand for bricks, masonry, roof tiles, and precast in the future. Brickworks considers these materials as key enablers in achieving the United Nation’s sustainable development goal, “Make cities and human settlements inclusive, safe, resilient, and sustainable.”

Partridge also noted that Brickworks is using the spoil from the Brisbane Cross River rail project to make bricks.

These initiatives are building upon past work within the company to reduce its environmental footprint. According to its sustainability report, Brickworks’ Australian operations have decreased emissions by 39.9% since FY06.

Brickworks shares are greener in more ways than one

To the excitement of shareholders, Brickworks hasn’t broken the bank while implementing its environmental plans. Instead, Brickworks shares have stampeded upwards in recent years — providing great value to shareholders.

In the past year, the company’s shares have gained 22% (23.2% when including dividends). This is roughly in line with the S&P/ASX 200 Index (ASX: XJO) return of 19% (23.7% when including dividends). However, the difference begins to stand out when assessing from a longer time period.

Over the past three years, Brickworks shares have garnered a return of 36%. While the Aussie benchmark has delivered 22.3%.

The post Could Brickworks (ASX:BKW) shares be a greener investment than first thought? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Brickworks right now?

Before you consider Brickworks , you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Brickworks wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

These ASX dividend shares keep giving investors a payrise

Own Brickworks (ASX:BKW) shares? Here’s what you’re invested in
Why has the Brickworks (ASX:BKW) share price slumped 5% in 9 days?
2 ASX dividend shares that could be buys in October 2021

Why the Brickworks (ASX:BKW) share price reached a new 52-week high today

Motley Fool contributor Mitchell Lawler owns shares of Genex Power Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!