When you think investing in the world's transition to net zero carbon emissions, ASX mining shares may not be the first that come to mind.
But even though the mining stereotype is one of environmental disturbance, the reality is the world needs minerals that are critical to building green technologies.
So if you're interested in financial returns from this global shift, here are two suggestions:
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'Reducing the environmental impacts within the mining industry'
Baker Young managed portfolio analyst Toby Grimm loves the look of RPMGlobal Holdings Ltd (ASX: RUL) at the moment.
"RPMGlobal develops and provides software and advisory services to the mining industry, including professional development," Grimm told The Bull.
"We see a long growth runway given the structural trend towards net zero emissions and reducing the environmental impacts within the mining industry."
The share price climbed 25% in just over a week last month.
"RPMGlobal delivered an impressive 2023 earnings update in July," said Grimm.
"The update revealed strength across all divisions, particularly in the newly acquired advisory services unit."
Grimm is not the only professional taking notice of RMPGlobal's bullish prospects. The team at Moelis Australia also rates the stock as a strong buy.
'A vital role in powering the green energy transition'
Meanwhile, Bell Potter private wealth advisor Christopher Watt's pick this week is South32 Ltd (ASX: S32).
"South32 is a diversified mining and metals company," he said.
"[The company] is reducing costs and has a strong balance sheet."
According to Watt, the minerals it produces include "aluminium, alumina, manganese, nickel, silver and coal".
"The company offers exposure to commodities that play a vital role in powering the green energy transition."
A nice bonus is that South32 shares currently pay out a dividend yield in excess of 7%, fully franked.
The advisor is bullish on South32's prospects from here on.
"We see robust free cash flow generation beyond fiscal year 2023 that potentially generates bigger returns."
Encouragingly, many of Watt's peers agree.
According to CMC Markets, 11 out of 17 analysts currently recommend the resources stock as a buy, with nine of those rating South32 a strong buy.
