Climate change is so often characterized as a social, environmental and political issue. While that rings true, the well-being of the global environment concerns money, too. In fact, advocates of The International Energy Agency estimate that fixing climate change will require $53tn in investment by 2050. It’s the nature of these recommended investments, and how they square with accumulating wealth, that’s most interesting.
Quite apart from being wholesale donations to environmental causes, these investments have a sizable ROI and will be of benefit to the investor. The public and political appetite for improved environmental measures means that looking to save money through recycling and making stock choices on green buys will be profitable. Simply put, you can make money and be good to the planet at the same time.
Big business investments
Investing in the big institutions of the country is usually a good bet. The likes of Microsoft, T-Mobile and Viper Energy have been cited by Forbes as affordable big company stocks that continue to grow, offering a decent ROI. Increasingly, this is becoming a sound way to invest while also benefiting the climate change cause. Up to half of Fortune 500 companies have implemented sustainability measures, including moving to renewable power, reducing paper waste and recycling to a greater degree. With a little research, you can quickly establish if a big corporation is going green, and pick your investment from there.
Favoring business sustainability
Going for green-tailored measures is not only mutually beneficial with making a profit, but it improves the livelihood of the business, too. A study by Kellogg School of Management, Northwestern University, established that sustainably minded firms will survive change better than the alternative. The bottom line of the report found that businesses who have a strong focus on environmental, social and governance (ESG) issues have a stronger stock price than those focusing solely on profit without a nod towards sustainability. For your business, or for your stock investment options, look to these businesses for a lower level of volatility.
Measures taken at home
Many of the everyday people with a good chunk of wealth are frugal spenders. Taking an environmentally friendly edge to your everyday activities will enhance any such behavior further. It’s already well established that refurbished items will save you money; they will reduce waste, too, otherwise produced by a brand new item. Tactics as simple as taking bags to receive groceries will reduce costs for you and help the environment.
You can also take it a step further by looking at your household waste management. Composting can save 277 lbs of waste yearly, and will save you money with trash collection. This will further reduce emissions from city vehicles, a double benefit for the environment.
Conventional wisdom would have you believe that you cannot invest and be environmentally positive. However, research has shown that stock prices reflect well on environmentally conscious companies, and, regardless of this, many large institutions are taking measures to become better for the planet. Paired with your own efforts, you can be safe in the knowledge that accumulating wealth can be simultaneously beneficial for the planet.