Why Invest Green?
December 14th, 2008
Investing Green: Past and Present
In truth, there is a lot to be said on this subject. Probably more than just one article can cover. However, as you’ll find in this article, the whole concept of investing green certainly needs to be talked about, shared, pondered, and in every other way exposed to as many people as possible regardless of nationality, social background, political leaning or financial status, because regardless of any of these, the prospect of investing green is important to you, as you will see below. So let’s look at some reasons for investing green that concern all of us, and not just the social elite or the far left.
Reasons for Investing Green
Direct Financial Benefits of Investing Green
Not too long ago, investing green was quite frankly a not-so-well-known practice usually associated with far left-wing, tree hugging liberal nut jobs that would be chanting “invest green” regardless of the cost green living might have on the individual consumer, and regardless of how poor the return on investment might be for would-be investors. However, today, regardless of which side of the isle you sit on, and regardless of whether or not you believe that mankind’s bad habits are having an effect on the earth’s climate, most everyone agrees that the general subject of green living, including all forms of green technology are here to stay. Most financial analysts agree that investing green is not only the wave of the future, but that the practice of investing green – when done correctly and into the right companies – enjoys a financial stability that doesn’t exist in too many other areas of the financial markets these days. Therefore, even if you don’t really care about the environmental issue at all, and all you are looking for is a stable investment, investing green is still for you. If you do your homework, you’ll find that green companies, green stocks and green consultants can help you earn as much as 1% – 2% per month on average! However, with even the American bond market taking a dive, even a .5% per month average return would be enough to send many investors scrambling for their broker’s phone number!
Another Financial Impact of Investing Green
One atypical (and relatively new) investment green technology has brought us is in the form of carbon credits and offsets. (Very shortly we will have enough information on these two financial vehicles on this site to give any investor a complete education on the subject). Other than providing returns to the discerning investor in terms of a simple and steady increase in value, they also have the net effect of forcing the costs of doing business upward for companies willing to pay to abuse the environment at the long terms expense of the rest of us. In most cases, the primary reason for not operating a business in an environmentally friendly manner has been a financial one. It was simply too costly to make the changes necessary to do the right thing. The creation of carbon credits and offsets, and their impending increase in value as the demand continues to rise is slowly but surely changing this financial truism. In the not too distant future, as a result of investments into companies green in ecology as well as in profits, it will simply no longer be cost effective for companies to attempt making money at the expense of the rest of us by polluting our world.
Social Reasons to Invest Green
To All Investors: Are you the kind of person who feels the need to always be doing the “in” thing? Did you buy that SUV because you really needed one, or was the real reason because it somehow became the “in” thing to drive an SUV? Well, the trend is different now. Investing green has become more and more popular in recent years, and especially in the last few months. Discerning investors who invest green are now perceived as people “in the know”, and on the leading edge of today’s business world. Want the “latest and greatest”? Consider green investments, and let your friends know about it.
Conclusion
If the issue of environment is really a non-issue for you, and you are simply looking for a stable return for your investments, investing green is for you. On the other hand, if you DO care, but your desire to do the right thing for our planet has been overshadowed by your belief that investing green meant settling for poor returns, then it’s time for you to look into this further, because your day has arrived! Truly this is one time when Republicans and Democrats, Liberals and Conservatives can all do the same right thing at the same right time without feeling as though they have to compromise their needs or even their principles to do so. Do your homework on investing green. It’s the right thing to do!
Justin Urquhart Stewart and guests discuss how investors should look at risk and returns as well as Investment Green credentials. If you’re considering investing green, you should already know that (as is the case with all types of investments having all of the facts in front of you before making an investment decision is only prudent. This video – along with others we’ll have on this site – endeavors to shed more light on all of the reasons for investing green.