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The Power of Green Investing

Green Investing

The Power of Green Investing

Many of us have likely switched up a product or a company in favor of a greener option. We may choose reusable bags rather than plastic, and pick up organic produce instead of traditionally farmed. These choices allow us to empower companies that are embodying the change we want to see in the world.

Just as how we spend our money makes a difference, so does where we invest it. The practice of green investing is selecting environmentally conscious companies or funds for investments. While these types of investments may have been financially risky at one point, today they make for smart moves. This is because the growing trend towards environmentalism means that money held in green investments is up 37% since 2016.

There are typically two categories of investments when it comes to green investing. Pure-play options are companies whose mission is to benefit the environment in some way. These include renewable energy companies producing solar or wind energy, as well as companies that produce technologies that make batteries more efficient.

There are also companies that aren’t in green industries, but still have eco friendly practices. Some examples of these types of companies may be clothing manufacturers who source responsibly grown cotton, or furniture makers who use eco conscious materials.

Since there is no one definition for what makes a company “green,” some businesses have been able to take advantage of the gray area with greenwashing. This is when a company attempts to appear environmentally friendly, while only changing a label, a misleading ‘seal of approval,’ or by launching a PR campaign. That’s why it’s important to fully research the practices and history of the companies you support, both with investments and everyday purchases.

To learn more about green investing and how you can get involved, check out this infographic below by Turbo: