If you’re concerned about green issues, have you considered the investments and pension funds you may have, and how they are making you money? It’s worth thinking about, because most standard funds are still heavily invested in fossil fuels and businesses that have a less than glorious track record on environmental issues. Naturally, you want to make an increase on your capital with any investments you hold, and you may be worried about the profitability and risk levels involved in choosing green investment options. How do you ensure that your money is invested in industries that will add to your wealth without compromising your ethics on the planet’s ecology?
The energy industry
However uncomfortable it may make you feel, oil, natural gas, and other fossil fuels are still the major source of energy and therefore the major route to profitable investment used to build up the value of investor holdings. If you check out the latest figures on oil price investing, for example, you’ll see it’s a force to be reckoned with as an investment opportunity. The good news is that alternative and renewable energy sources are becoming increasingly valuable, and are now challenging for the attention of serious investors. Across the world, governments and industries are beginning to take the development of renewable energy seriously, both in terms of its advantages as a source of power, and its potential as a profitable investment. Their motives may not always be centered on the green aspect of renewables, as there are other concerns such as being energy dependant on other countries, and the potential afforded by technological developments that have made green energy capable of supporting whole communities for decreasing expenditure. Regardless of why renewables are taking a bigger share of the market, the effect is the same – cleaner energy that is worth investing in.
Choosing green and ethical investments
As concerns about green issues increase, so too do the range of ethical investments available. Some brokers and advisers will specialize in ethical investments, so you can set up your portfolio through them and be reassured that your money will only go to businesses that conform to your green principles. Other brokers may offer a range of ethical investments alongside their standard portfolio, in which case you will need to select your own investments and make it clear that you wish your money to only go to ethical or ecologically sound businesses. If you aren’t too risk-averse, you might also want to consider investing in green start-ups. New businesses aren’t guaranteed to succeed of course, but if you believe they have a great product and a good business plan, you might want to get in on the ground floor. You could end up making a substantial return on your investment if the business takes off, and green companies that become well-established should continue to increase in value as the world adopts an increasingly green approach.
It may take a little more effort to make sure your investments are as green as possible, but it’s worth it to know you are putting your money where your mouth is – and as the industry is set to keep growing, you could make a healthy profit into the bargain.