Key points:
- Ceres Power shares rose after unveiling its first sustainability report.
- Investors barely reacted to the report since Ceres is a sustainable firm.
- Are Ceres Power shares a buy? Read on to find out.
The Ceres Power Holdings plc (LON: CWR) share price edged higher after the sustainable energy company released its first annual sustainability report. However, the muted reaction to today’s report may indicate that investors do not think it will significantly impact the company’s future trajectory or its customer and investor base.
Ceres Power is a company that develops electrochemical technologies for fuel cells for power generation and electrolysis, through which one can create green hydrogen and energy storage solutions. Therefore, a sustainability report from the company is more than expected.
Also read: Five Best Environmentally Friendly and Ethical Green Stocks.
Still, the company took time to compile a detailed report of its activities and strategies for meeting international sustainability reporting standards. For example, as detailed in the report, Ceres Power’s ESG Committee implemented the first phase of its Streamlined Energy & Carbon Reporting (SECR) disclosures on carbon emissions.
The ESG committee is currently working on a detailed picture of the company’s full Scopes 1, 2 and 3 emissions with the help of Ricardo. Ceres Power also revealed that it applied the Sustainability Accounting Standards Board (SASB) framework in its report on the disclosure of financial material sustainability measures.
Ceres Power has also tapped into the Science Based Targets initiative’s (SBTi) guidance to establish a science-based pathway to lower greenhouse gas emissions (GHGs). The company has worked with Ricardo Energy & Environment since 2021 to meet its various sustainability objectives.
Investors were also unmoved by the company’s application to list on the London Stock Exchange’s main market. Ceres noted that moving to the main market would bring it under the UK Financial Conduct Authority’s (FCA) requirements for the Task Force for Climate-related Financial Disclosures (TCFD).
Ceres Power also noted that it was pursuing diversity in its workforce and is keen to attract and retain talent from all walks of life to help it build a globally renowned company.
So, would I buy Ceres Power shares? The short answer is maybe. CWR shares are trading sideways but have yet to indicate they are ready to rally. I would keep them on my watchlist.
*This is not investment advice.
Ceres Power share price.
The Ceres Power share price is edging higher and could form a bottoming pattern leading to a rally.
