Although it might seem like we can only focus on one global crisis at a time, the truth is that climate change is a looming threat affecting everyone on the planet. To ensure the preservation of the natural world and to allow humans to continue living in comfort, we all have to prioritize sustainability and do whatever we can to create a better world for current and future generations.
You might already be making energy-smart savings in your home and buying more “green” products. But have you looked at your investment portfolio? How green are your investments? Here’s what you need to know about the top investment opportunities that could build your wealth and help the planet.
Why Are Green Investments a Good Idea?
While investing might not seem like the most logical place to “go green,” it’s actually one of the most important contributions you can make in the fight against climate change. Sustainable, green investments go a long way toward putting the power into the hands of companies working toward a better future. We need driven, motivated people to build businesses that make a difference.
Investment bankers are only interested in where the money is going—the stocks, bonds, and other investments. Your investment dollars speak loudly, and they can encourage companies that are trying to create a greener world while pulling funding from corporations that have shown they are not willing to stop polluting. Collectively, we need to demand that our dollars go toward helping ethical, sustainable businesses grow and build market share.
Green Energy Investments
We know that fuels like oil and coal are not only bad for the environment, but they’re not sustainable. Investments in green energy companies benefit the planet and provide excellent opportunities for smart investors.
Water, solar, and wind energy technologies are improving all the time, making these green energy sources more accessible to people around the world. That accessibility will make renewable energy more popular, growing the value of green energy companies.
Investing in green energy is a choice you can feel good about. Renewable energy will help in the fight against climate change and help us preserve the planet’s resources. Additionally, investments in this sector are very likely to pay off big in the next decade or so as more of the world prioritizes sustainable energy sources.
Eco Living Investments
We all want to feel like we’re doing what we can for a more sustainable planet. The truth, though, is that we have to do more than make individual changes. Investing in corporate social responsibility is a great way to contribute to a greener future. Avoiding companies that practice “greenwashing” (talking about sustainability to increase goodwill and sales while engaging in harmful activities) is important when investing in the eco-living space.
Eco-living investments include sustainability in agriculture and aquaculture (sustainable fishing) as well as sustainable consumer goods. As more people become aware of their role in the future of the planet, these investments will only become more important in the next few years.
Building Improvement and Efficiency Investments
Green infrastructure is just one of the many factors involved in creating a more sustainable planet. Commercial buildings must be updated to be more efficient and to use less energy. Urban planners are also taking sustainability into consideration for the cities of the future.
Investments in this space will be key for reducing emissions and cutting down on the wasteful use of resources. Efficiency investments might not be the most glamorous way to spend your money, but they can help you build a strong portfolio and make a big difference in our world.
How Green Investments Can Help Plan for a Smart Financial Future
Obviously, it’s smart from a climate change perspective to invest in green companies. But it’s also smart from a financial planning perspective. You can make money for your future retirement and other big plans while feeling good about where your money is going.
It takes a little more effort to find green investments, but it’s well worth the extra research. Not only will you have a clear conscience as you build your portfolio, but you’ll be contributing to a better future for yourself, your children, and future generations to come.