What is Green Investing ? What does it mean? How important is it to investing in this era? In this article, we will find the answers.
When we hear the word “green” or “green investment”, everyone probably thinks of images of trees or any investment that gives money to plant more trees. But in reality, when we talk about investment, it means generating income and not worrying too much about how investing in that business will affect the environment or green trees. What investors consider the most is the return on investment. Look at how much you invest, how much you get back.
However, in this era of investment, looking only at the return in terms of money may not be enough. Because if we follow the movement, investment news from all over the world, we will find that nowadays the investment industry does not only talk about money like before. But now there is a topic that is often brought up in discussions about investment, which is “green investment”.
“Green Investing”
Green investing is the investment that involves investing in companies that are actively promoting environmental responsibility. While operating in a green manner is a new way of doing business for most companies, many well-known companies are choosing to give it a try, despite the challenges and the long road ahead. Some examples of companies that are serious about green investing include Cisco Systems (CSCO), McCormick & Company Inc (MKC), and American Water Works Company Inc (AWK), which is a US company that ranks 15th in the 2021 Global 100 list and was also ranked as the most sustainable company in the world based on sustainability and environmental impact rankings.
“Solving the world’s environmental problems is big business.”
The search for solutions to climate change and environmental responsibility has become big business, with leading companies around the world trying to reduce their reliance on fossil fuels, from wind farms to alternative fuels. For example, in 2007, legendary oilman T. Boone Pickens launched a bid to build one of the largest wind farms in the United States. Although he later sold his shares, he remained a staunch advocate against oil dependence and in favor of renewable energy until his passing in 2019.
“An environmentally friendly and profitable business”
Energy giant General Electric has partnered with the U.S. Department of Energy to design and manufacture wind turbines, while other major energy companies have been developing clean coal technology, with Tesla (TSLA) a key driver of sustainability initiatives in recent years, followed by a number of other automakers embracing electric and hybrid vehicles. Other companies are also reclaiming abandoned or underutilized brownfield industries to design energy-efficient devices, create new products from recycled materials, engage in sustainable farming practices, and develop ways to reduce air pollution. These companies are looking for solutions to operate in a more environmentally friendly way.
“The Roots of Green”
The concept of green investing is a byproduct of the awareness of social and environmental responsibility. Socially responsible investors tend to avoid investing in companies that produce products such as alcohol, tobacco, and firearms. Green investors tend to support companies that protect the environment and, regardless of how they use natural resources, these companies show responsibility or give back in some way. Although the green investment movement has taken some time to make a positive impact, the green investment trend is currently looking brighter as concerns about energy and the environment continue to grow.
“Green Support”
If you are ready to go green, investing in companies that are involved in environmentally friendly processes is the easiest and most obvious way to show your support. Not only will you feel good about your investment, but you will also profit if the organization is successful. In addition to buying shares in eco-friendly companies or companies that are trying to solve environmental problems, you can also buy their products. You will enjoy the products, and every penny you spend will support your investment. Likewise, if you find that a company you use or support is harmful to the environment, you can show your stance by stopping using their services or consuming their products.
Conclusion
Due to climate change and the many warnings the environment is trying to give us, our planet is using resources without thinking and without thinking about responsibility. We are extracting natural resources without thinking about giving them back. We are destroying without building.
Nature and the environment are now reclaiming what humans have taken away. If today you realize the responsibility you have for the environment, you can start by supporting green investments, which are not just about planting trees, but also about stopping being a danger to the environment and helping restore lost natural resources to their full potential.
“Green investment is just profit from environmental responsibility awareness. But profit from green investment is not only you get money back, you also get the world back.”
Reference:
What Does It Mean to Be Green?
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