Most environmentally conscious people know that every purchase they make has an impact. The products you buy and the companies you support are a small way to make a difference in the world. That’s why many people opt for more sustainable options, choosing responsibly-sourced goods and recyclable materials whenever possible. Where we put our money matters.
On a larger scale, investing directly in environmentally friendly companies is a powerful way to support the initiatives you believe in. Green investing has always been around but has risen in popularity in recent years as sustainability has become more and more important to the average consumer.
Yet just as it’s not always clear how Eco-friendly a single product is, it can be hard to determine which companies qualify as “green.” There are no broadly-accepted standards for what a green company should be. As such, there is some gray area when it comes to green investing.
Pure-play options are almost always regarded as green, and cover businesses whose mission or main source of revenue is derived from products, technologies, or research that directly benefit the environment. This would include companies that manufacture solar panels or work towards the conservation of the rain forest.
There are also businesses that are in other industries, but whose eco-friendly practices make them a great option for green investing. Companies like clothing manufacturers who source sustainably grown and fair-trade cotton could be on this list.
Since there is some room for gray area, what ultimately makes an investment green enough is up to you. That’s why it’s important to fully research the practices and history of the companies you support, both with investments and everyday purchases.