Green Investments look set to be the must-have stocks in the environmentally conscious and moral minded investor’s portfolio.
What Are Green Investments?
Green investments can be broadly defined as investments in which the companies/funds involved somehow look to improve the environment.
Of course what constitutes a true “green” company can be open to interpretation. Individual investors’ opinions will differ on what they believe is a “green” investment to them. Therefore, like all investments, it is wise to gain as much information as possible about a potential company before making any deals.
Examples of Green Investments
- Alternative Energy
- Husbanding Services
- Pollution Reduction
Alternative energy businesses might include wind farms, solar power companies and other producers of renewable energy sources.
Husbanding services include carbon offsetting through reforestation, organic farming and rain water harvesting in construction. Other green investments might be companies who might not be actively involved with improving the environment but operate their business in a highly eco friendly manner.
Why Invest in Environmental Business?
In an increasingly environment conscious world, eco business looks set to be the next hot stock market investment. Moreover eco-friendly / green investments have the advantage that they have a positive moral cause.
Green Investment Funds
Instead of investing in individual companies or businesses; there are numerous eco friendly/green fund options that consumers may wish to put their money into. As environmental funds are a still in their infancy and are a constantly developing investment avenue is impossible to state whether their potential might be.
How to Trade and Invest in Eco Friendly Companies
Investing and trading in Green/Eco Friendly Companies is exactly the same as investing in any other company.
Risks of Green Investment
Like all new investment opportunities and supposed “hot” stock market trends eco friendly/green investment should be classed “high risk” at this point. This is not only because it’s a constantly evolving industry but also because certain aspect of green business are still under dispute.
For example trading in reforestation to offset company carbon footprints could potentially be incredibly lucrative but its success depends on many factors such as a the agreement to worldwide consensus on the reforestation trade; consumer trust and implementation issues.
Furthermore the state of the environment is a subject that consistently divides scientific opinion and it’s hard to be sure of facts and what is simply media scare mongering.