People have grown a lot more conscious about where they’re putting their money and with good reason. Companies have pursued their growth strategies with reckless abandon. That has had a significant negative impact on our environment.
The planet has suffered irreparable damage due to the unchecked use of natural resources, the release of untreated industrial waste, mining, exploration and production operations of fuel companies, etc. The charge sheet against companies that have harmed the planet is substantial.
While many companies are now actively taking steps to reduce their carbon footprint and to limit their impact on the environment, many scientists now believe that these steps are too little and too late. The damage that has already been caused can’t be reversed.
Consumers now have access to more knowledge than ever before. Word travels significantly faster across the globe now than it did just a few seconds ago. So a company damaging an ocean on the other side of the planet can’t do it under the cover of darkness. Chances are that it will be known instantly across the globe just what they’re doing.
The increased level of accountability has had a positive outcome. People are now leveraging the power of connectivity that modern devices provide to join forces in holding companies that damage the planet accountable.
This increased access to information has also made them aware of just who the good guys are. There are a lot of companies that are actively trying to improve the planet. They are certainly worthy of our support.
People who lead socially conscious lives want to ensure that none of their investments help organizations that don’t share the same values. So even if they’re looking to invest in the stock market, they’ll be searching for green investment opportunities or eco-friendly stocks to invest in.
What are green investment opportunities?
The idea behind all green investment opportunities is much the same. It’s to rally around companies that are trying to reduce the burden that humanity places on the environment. This is easier said than done.
There are still major corporations across the globe that aren’t doing as much as they should be to reduce their impact on the environment. That’s despite them having launched sustainability programs that give the impression that they’re making a difference when in reality they’re not.
What’s promising is that there are now more green investment opportunities than ever before. They exist in every industry that has the potential to become more sustainable. For example, power generation can become a lot more sustainable than it currently is.
That’s why green energy stocks are now listed among the hottest investment products. The global community as a whole has recognized the importance of green energy sources. Shifting from conventional methods of power generation to more renewable methods requires a significant amount of money.
This thus provides people with green investment opportunities. They can rally around a solar power project, for example, and provide that business with the funds that it needs to set up new solar generation plants that may be capable of meeting the energy requirements of entire towns and cities.
The top industries for eco-friendly stocks
Automobiles continue to be among the biggest polluters on the planet. Anything with an engine in it that requires fossil fuels like gasoline is a polluter. The industry has seen explosive growth over the past few decades and now billions of cars release harmful gasses into the environment daily.
It’s interesting to know that the automotive industry now has some of the most promising eco-friendly stocks that you can find. Major auto manufacturers are increasingly adopting electric vehicle technology. They’re launching new models that run on electricity alone. Several major manufacturers have also committed to only launching electric cars not too far in the future.
Some companies only make and sell electric cars. They’re also helping increase the adoption of vehicles that don’t require any fossil fuels. With electric cars gaining popularity, these eco-friendly stocks now tend to deliver exceptional returns.
The global population continues to grow and it’s putting an immense strain on our natural resources. The task of meeting this incredible surge in demand for food harms the environment as well.
Some companies are tackling this problem by creating alternatives. For example, you’ll find that companies that are developing meat alternatives tend to be listed among the best eco-friendly stocks. It’s a task that they’ve been able to achieve. Plant-based meat alternatives have now made their way into fast-food chains and supermarkets across the United States and beyond.
The construction industry can deliver a lot of improvement in its impact on the environment. The steps that can be taken to improve its sustainability are viewed by many as low-hanging fruit since it doesn’t require a significant effort or change in the way things are currently done.
Many real estate developers are now focusing on reducing the energy consumption in their buildings. They realize that many companies and individuals recognize the importance of being energy efficient. They would have a higher chance of attracting those tenants and investors in their buildings who would appreciate that the developer took all of the relevant steps to ensure that their buildings have energy-efficient systems.
Entire countries have now set ambitious targets to power themselves completely through renewable and sustainable energy sources. This means that they’re investing heavily in the infrastructure that’s required to make this happen.
Some of the biggest companies in the world are also actively taking steps to reduce their carbon footprint. They do that by acquiring energy from renewable sources to offset their usage. Major tech companies are now running entire data centers on renewable energy in pursuit of their goal to become more sustainable.
The incredible demand for clean energy means that there’s no shortage of eco-friendly stocks in the power generation industry now. That’s also a bit ironic when you consider that before the use of renewable sources, the power generation industry was one of the biggest polluters on our planet.
Diversify by investing in eco-friendly funds
Diversification of assets is one of the golden rules of investing. You wouldn’t want to put all your eggs in one basket. In this case, you wouldn’t want to put all of your money into one single company. Your profit or loss on that investment would then be entirely dependent on the performance of one single company.
Diversification is why funds are such a popular investment product. They’re composed of many different companies and you can get exposure to all of them by simply putting your money into the fund. So even if the stock of one company in the fund isn’t performing well, the others might be reaching all-time highs, thus keeping you in the green.
You can easily find funds now that are composed of eco-friendly stocks. They provide you with exposure to a whole basket of socially conscious companies that are doing their bit to improve the condition of our planet.
Consider the Redwood Fund by Aspiration
Aspiration, an online neobank, offers the Redwood Fund for socially conscious investors. All of the companies included in this fund go through a rigorous assessment of their sustainable environment workplace and governance practices.
They consider several environmental, social, and governance factors to find companies that prioritize the betterment of the planet. These include carbon emissions, hazardous waste, water use and recycling, energy efficiency, and the use of renewable energy.
The Aspiration Redwood Fund is a fossil fuel-free fund. This provides investors with the peace of mind that the money they’re investing isn’t helping companies that continue to harm the planet.
It was also important to make this green investment opportunity available to everyone. For that reason, the minimum investment required to participate in the Aspiration Redwood Fund was set at only $10. This was done to bring sustainable investing within reach of the masses.
All customers who open an account with Aspiration are eligible to invest in the Aspiration Redwood Fund.