As the years go by, ethical and eco-friendly investments become easier to make and funds that specialize in them have become more widely known. Investors have allocated over $30 trillion to sustainable funds and financial assets. This figure is likely to keep rising in years to come.
The increase in ESG funds has also made eco-friendly investments much more accessible for new and old investors. It has played a huge role in helping drive demand for eco-friendly investments.
You can promote the conservation of resources, clean air and water projects by investing in eco-friendly companies. In this article, you’ll learn about this exciting new sector, as well as some ways in which you can get involved in it.
What are Ethical and Eco-friendly Investments?
Ethical investments are investments which are in accordance with social morals, values, or standards. In ethical investments, your ethics (as well as others) act as the compass that navigates you to a venue or company to identify with.
Eco-friendly investments can be described as a subcategory of ethical investments. The main value here is to promote a green lifestyle while still making profit. Eco-friendly investment has its benefits, and they are not purely economic.
This field has also started to become a lot more popular in the wake of the pandemic. People have started to realize how vulnerable our world is due to the pandemic and decided to invest in preserving it.
Best Ways to Learn How to Invest Smartly
Ethical and eco-friendly investing can be a whole lot easier if you take some time to get to know the field first. There is no need to be worried, especially if you are new to the investment world. Here are a few tips and tricks that can help you come prepared.
1. Buy and Read Investing Books
Books can be a good guide on how to invest wisely and ethically. It is advised that you buy and read different investing books before making eco-friendly investments, so as to get different opinions. Examples of such books are:
- The Only Investment Guide You Will Ever Need by Andrew Tobias
- I Will Teach You to Be Rich by Ramit Sethi
- The Bogleheads Guide to Investing by Mel Lindauer, Taylor Larimore and Michael LeBoeuf
2. Take an Investing Course Online
Signing up for an online course can help you know the intricacies of investments. Websites like Webacademyst can offer you a variety of online courses, including investment and finance, which also include an emphasis on ethical investments. This type of learning is becoming more popular over the past few years.
3. Follow Investing Forums
Following investing forums open for discussions with different opinions from investors can also help you know your way around investments, and to figure out which ones are more morally suitable to you. You might want to follow forums like Reddit or Bogleheads.org for updates on index funds and investing.
Trending Sustainable and Green Investment Companies to Identify With
When it comes to eco-friendly investments, there are many options these days. Here are three of the most prominent ones.
- NextEra Energy (NEE): NextEra Energy is the world’s largest generator of renewable energy from the sun and wind. Other companies under this category are Energy Partners LP and Vestas Wind System
- American Water Works (AWK): This eco-friendly company is the largest publicly traded water and wastewater utility company in America. Other water investment companies are Calvert Global Water Fund and AllianzGI Global Water Fund
- Enphase Energy (ENPH): This company uses micro-inverters during solar panel installations and has installed over 36 million microinverters in over 1.5 million homes.
- First Solar (FSLR): A solar power company that develops solar energy and builds solar plants. Other renewable energy companies are JinkoSolar Holding Co. Ltd. (JKS) and Sunpower Corp (SPWR).
Ethical and eco-friendly investments have been made easy in recent years. With various online sites like Webacademyst, gaining relevant information at your convenience and from any location is possible. You also have the privilege of helping the planet and humanity, and that should not be underestimated.