How popular is eco investing? You might be surprised to hear that it has been booming for the past 20 years.
The field has grown. New eco friendly investment funds have been growing rapidly. Calvert International Opportunities has realized a return of 26% between July 2016 and July 2017. Parnassus Endeavor has performed slightly better, with an ROI of 27%. Oakmark International is performing the best. They have an ROI of 36% over the same timeframe.
Taking action to protect the environment is at the forefront of many corporate agendas. Whether its electric cars, solar power or wind energy, there are many renewable energy projects that are being implemented by environmentally-conscious companies.
Benefits of Eco Investing
As an investor, you should pay careful attention to this global movement. Although eco investments tend to fluctuate in value, they are sound investments. Of course, you still need to choose the assets that you invest in carefully, because green companies can be badly managed like any others. Here are 5 reasons eco investing is smart investing.
1. Environmental responsibility has taken center stage across the globe.
Several companies have created global initiatives to support environmental responsibility. These global giants include Walmart, Apple, Panasonic, Kohl’s, Whole Foods and Chipotle. Kohl’s has made a huge commitment to sustainability recently.
As the concern for the environment continues to grow, additional companies will take the lead on environmental issues. This provides a great opportunity for investors to support environmental initiatives and make a profit at the same time.
Harvard Business Review recently conducted a sustainability study. The results of the study concluded that environmentally-conscious companies will benefit from these initiatives within the next 20 years. These companies will be prepared to adapt to new environmental regulations and legislative mandates.
2. Eco Investments aren’t limited to one sector.
It’s essential that investors take a broad view when it comes to eco investing. The interesting point about ecology is that it transcends various sectors.
Here are a few examples of eco friendly corporate initiatives in action. Kohl’s uses solar energy to reduce the amount of electricity used in each of its stores uses. Whole Foods sells minimally-processed foods that are less harmful to the environment than traditional ways of processing food.
When it comes to eco investing, investors must be open-minded. Otherwise, they’ll miss out on prime investment opportunities.
3. Eco Investment growth funds have been created to encourage investing in these initiatives.
Huntington EcoLogical Strategy Shares ETF (HECO) is an investment growth fund that focuses solely on ecological investments. HECO fund managers pay close attention to the following elements when deciding which investments to include in the fund.
Credit worthiness
Valuation
Management quality
Unlike short term loans, HECO provides a way for investors to grow their money with a long-term strategy. This fund is based on solid metrics.
4. Socially-conscious investing has exploded in popularity.
Environmental responsibility isn’t a fad – it’s a movement. As customers begin to appreciate the need for eco friendly practices, they are demanding more from global corporations.
As a result of these increased demands, company leaders are taking their roles as ecological gatekeepers seriously. According to recent data, positive eco friendly actions will increase.
Wall Street has taken notice of these initiatives. Eco friendly investments exceed $3 trillion dollars.
5. Eco Investing ensures that investors are doing their part to protect the environment.
Promoting sustainable business practices is everybody’s responsibility. The condition of the environment is only as good as the care that it has been given.
Eco investing is just one way that investors can support sustainable business practices. Although it may only be a small effort, these investments ensure that the eco friendly corporate initiatives will continue for years to come.
Start Your Eco Investing Portfolio and Watch it Grow
Investing in eco friendly stocks and bonds is a great idea. You can watch your money grow by around 30% a year if you choose the right stocks. You just need to make sure that the companies have a strong reputation and good financial ratios. Financial consultancy could be beneficial in this case and If you’re looking for business advice contact Cooper Parry.
Conclusion: Eco Investing Is More Powerful Than Ever
In today’s era, with climate change impacting all of us and new investment opportunities growing all the time, eco investing is especially important. It’s a way to put your faith in a more sustainable future and to encourage companies to create more sustainable options. It’s also a way to contribute to a better future for our planet and for generations to come.