So if you want your money to work for the triple bottom line then this short article on green stock investing is exactly what you’ve been looking for.
And to be fair…
This isn’t the first time we’ve written about green stock investing and how to invest in responsible companies. But today we’re going to go a little deeper into the specific different ways you can invest in green stocks. It’s actually easier than you think.
So here are the fastest and easiest ways to get started investing in green stocks.
Green Stock Investing Indexes:
The fastest and easiest way to get exposure to green stock ideas is through one of the green stock investing indexes. There are a number of sustainability indexes you can use to guide you on your way to find green stock investing picks.
Financial services industry leader like Dow Jones are realizing that green stock investing is more than just a trend. The Dow Jones Sustainability Index covers 24 industry groups with an industry leader in each. You can get detailed reports on corporate social responsibility for a broad array of companies. So if you’re looking for green stock investing ideas within the publicly traded stock markets this is a great place to get started.
Another leader in the field of green stock investing indexes is a company called Sustainalytics. They offer a number of green stock investing options through sustainability indexes. The Jantzi Social Index is one of the most popular and a great way to start finding green stock investing opportunities.
There are also an increasing number of socially responsible mutual funds. These funds work exactly like regular funds except that they are focused on finding socially responsible companies to invest in. If you’re looking for a broad basket of socially responsible investing opportunities these green mutual funds are probably the way you’ll want to go.
Of course, if there are specific areas of the stock market you want to focus on you can also find green stock investing opportunities by sorting through the relevant industries.
Green Stock Investing by Industry:
Green stock investing is made easier when you focus on only those industries that are by their very nature green. The most prominent example would be renewable energy sources like solar energy and biofuels. You could also look into industries that are trying to actively solve environmental problems like these pollution and treatment control companies.
Use free online stock screeners to drill down on the industries that present the best green stock investing opportunities. And…
By focusing your green stock investing analysis on industries that are inherently green you can really improve the chances of your investment having a positive impact. And once you find an industry you like you can easily drill down to do an intra-industry analysis to compare your best green investing ideas based on more traditional financial metrics like P/E ratio and price to book.
On the other hand, investing in green companies doesn’t have to be limited to the public stock market.
Green Investing Outside The Stock Market:
Since stockideas.org is almost exclusively focused on publicly traded common stocks this isn’t an approach we usually talk about.
But in the case of green investing there are lots of opportunities outside the stock market where you don’t need a lot of money to make a difference and you can get started right away. You can also allocate your money to projects that you think are good investments (based on your potential return and the n
Platforms like Zidisha and Kiva are great in this way because you can pick the exact cause you want your money to go towards. And in the case of Zidisha you can even set your own interest rate so that you get the return you want, while still having a positive social or environmental impact. Just keep in mind that unlike the stock market these are debt investments. So you’ll be paid back plus interest, but you won’t be
In any case, analyzing and investing in green stock opportunities is definitely a positive trend. And there are lots of great tools and online platforms to help you get started both inside and outside the stock market. Just be sure to make the company is financially prudent and not a money-bleeding charity.
And By The Way: If you need any help improving your approach to analyzing stock ideas (green or otherwise) I encourage you to download the free ebook below. You’ll also get weekly email tips, tools and updates to help you make smarter investing and swing trading decisions.