Due to the recent financial crunch on the global platform, a majority of the investors from all over the world have realized the need for sustainable finance. Thankfully, a lot of companies have come forward to join this green agenda; green funds are fast becoming the new face of investments. Green investments are what the investors are looking to buy. This demand has prompted several companies to start up new green projects to keep at par with this growing demand.
The term sustainable finance has a deep inner meaning than just investing in green businesses and hoping to get a nice return. It is more about picking the right kind of products and services from companies that are determined to make certain contributions to the environment. Even ethical investing can be very relative as a term as it may vary from one person to another. For example, one investor may find it extremely unethical to invest in a company which is somehow related to a weapon manufacturing company or tobacco manufacturing company, whereas another investor may not. Therefore, for any investor, it is important to make an investment strategy depending on the three variables of ethical investing– risk, reward and responsibility.
Previously, investment in the market was viewed as unsafe by many people as there was little hope of getting a decent return. But today, the whole picture has changed. Many people have a growing awareness about personal finance and the advantages of making investments, especially green investments. It is not at all surprising, considering the enormous demand of such green investments among consumers, that the solar stocks and wind stocks have gained significant profits even during the recession. Why is there a widely spreading popularity of using and buying renewable energy resources? Because the increasing price of gas, food, etc. and the notable change in our climate has gotten people concerned about their future.
Since a lot of people now are showing interest in investing in green stocks or green funds, many companies are taking it as a challenge to incorporate a green cause in their business strategy by inventing new ideas of recyclable energy resources. Now more than ever there are various green investment opportunities by multinational companies all over the globe.
These green investments are profoundly effective in terms of giving a preferable return. For those who want to be sensible about their investments, investing in several green companies who are devoted to environmental issues as their prime agenda is now an option. Green stock investments can range from exchange traded funds, green mutual funds, green stocks, green certificate of money deposits etc. providing a wide variety for investors.
In addition, companies who are offering green investments are quite often directly involved in the cause they are promoting. For example, Pepsi Inc is doing their part by taking up a global strategy responsible for environmental issues around water and green house gases. The use of water and energy for the production of Pepsi products has been markedly reduced in recent years in order to lower their emission of green house gas as well as to cut their budget on packaging and wastage. The company, the investor, and the environment all benefit.
Over recent years, environmental issues have gained the popularity they deserve. Those companies who are providing green investment solutions are truly at the edge of innovative business opportunities. It is of great importance to make sure that there is a balance among the ecological system, financial development, and the social stability of various communities. Sustainable finance opportunities will not only help to reduce the dangerous effect on the environment and global communities, but it will also provide huge benefits to the involved businesses in the long run.
So, do you practice sustainable finance?
I like to think we practice a lot of sustainable finance. We’re frugally sustainable. We try to invest in companies/funds that we consider sustainable. We try to support our local economy and the community in which we live and most of the time we make the “green” choice where we mostly break even compared to the unsustainable option(s).
@SPF. That’s great to hear. I know you two are champions for being green as best as you can. What kind of investments have you found that are sustainable? I would be interested to hear and maybe incorporate them into my own plan.
I like to look at ETFs that are supposedly socially responsible and pick stocks from those ETFs that i’m comfortable with. The Jantzi ETF picks the “industry best” but I still can’t go and buy Suncor just b/c they are the MOST responsible in a pretty irresponsible industry.
I do hope to post a bit on stocks I look at. But as an example we own Power Financial, RBC, BMO, Rogers, Manitoba Telecom, Liquor Stores, Intel, AT&T, EEI (US environmental clean up company w/ a nice dividend).
@SPF. Are those all individual stocks or index funds? I ask because I have a hard time convincing my hubby to support me in buying individual stocks for companies that are in my opinion “sustainable”. He would much rather we put our money into index funds where the return and yield is less risk and more stable. I would love to read your posts on which stocks you watch and buy. It would be very helpful. It really is hard to find ones that meet all of my criteria; even with all of the research I do.
I do! I’m not sure if every stock I invest in is “green” friendly. But, I do have a couple of renewable energy companies in my portfolio. They haven’t yet made me any money, but I feel good supporting them and I’m hopeful they will take off one day.
@Kyle. I am glad to hear that making money isn’t your only focus. Hearing that makes me so happy. Investing in things for the greater good is so important but so many people miss out on that because they are focused on the direct benefit to themselves. Thank you for doing your part.
I have a solar technology start up in my portfolio. That’s about it. At least I don’t have cigarette stocks…
@RB40. That’s a start and better than some. Hey at least you have thought about it. I am glad to hear you don’t have any cigarette stocks.
You present an important focus… one that, since discovering you a couple weeks ago, has caused me to slow down and think for a bit. Thanks again for some excellent material for me to ponder…
@Doctor Stock. You’re welcome. That is the point I have been trying to make and you hit it on the head. Investors should take time to think about where they are putting their money and what kind of impact their investments have; they should not be blindly investing in things that just give the highest return. I hope you are able to find a sustainable strategy that works great for you.