With growing awareness on global environment crisis, it’s interesting to see how many businesses have been going green. It is not just limited to industries that give out emissions; the Eco- friendly bug has bitten every sector. At least, in theory, our future should be better.
Green investments are things like stocks, exchange related funds and mutual funds, in which the underlying businesses are somehow involved in operations aimed at improving the environment. This can range from companies that are developing alternative energy technology to companies that have the best environmental practices. Basically, if your green cash goes into a green business, or supplements resources for a green business, you are an eco-investor!
Green industries and business include startups that are developing new methods for creating bio-fuels or solar panels, and traditional market cap heavyweights that are expanding their product lines to include environmentally friendly products.
Green investing can also be achieved through exchange-traded funds (ETFs), which mimic the stock indexes made up of green companies. Another way is to let your professional portfolio manager take over, and choose the greenest assets to invest in based on your company prospectus.
However, since the global belief on what constitutes a “green investment” is different and uncertain, it becomes difficult to determine what investment is actually green. Either ways, the foot is in the door, all that remains to be seen is that the world is able to find a consistent meaning to the whole idea of green investments and that it promises maximum involvement from all other sectors.