Climate change is certainly making headlines at the moment with the long-running drought, the ongoing fires in New South Wales and now there are fires going on in east Victoria.
It's easy to see a lot of businesses that are suffering with all of these issues with drought, fires and so on. But what businesses could do well if conditions persist or even worsen?
Here are three ASX share ideas:
Australian Ethical Investment Limited (ASX: AEF)
In a world where some investors and entrepreneurs are hoping to make a difference in the world, Australian Ethical could be a way to win from a desire to solve the underlying issues.
Australian Ethical is a fund manager with a focus on 'ethical' investments such as renewable energy, energy efficiency, green building, pollution prevention and so on.
The company earns fees from investors wanting to put their money into these investments and green investment ideas could perform strongly in the coming years if demand for those products and services continues to increase.
Cleanaway Waste Management Ltd (ASX: CWY)
Australia is now doing a lot more of its recycling within the country rather than sending it overseas.
Cleanaway is one of the leading businesses in this space with extensive recycling facilities across Australia.
The company is expected to grow earnings strongly in the medium-term and population growth in urban areas should continue to help Cleanaway's earnings and profit margins.
Duxton Water Ltd (ASX: D2O)
Duxton Water is a company which owns water entitlements. Agricultural businesses require water, particularly when conditions are hotter and drier. Duxton Water provides an important resource for agriculture businesses that enable them to continue to grow their crops until the rain returns.
Water entitlement values have gone up a lot over the past couple of years, so Duxton Water is benefiting a lot, although its share price has trading at a significant discount to the underlying value of its water entitlements. However, when it rains again water entitlement values will fall back somewhat.
Foolish takeaway
Each of these businesses have promising futures if climate change continues to be a major factor in Australia and the world. Australian Ethical will probably see the biggest growth, it's already the fastest growing superannuation fund provider.
