In the great world of investing, it can be tumultuous at best when trying to find the right stocks that align with your passions while also providing adequate returns when armed with limited knowledge. However, the task of locating eco-friendly stocks are not as hard you might think.
Thanks to the world of robo-investing, apps like Stash and Grow allow you to invest specifically in environmentally friendly funds with minimal costs. However, if you’d like to dig a little deeper on why a company is eco-friendly, the list below provides some good qualifications on who’s a good prospect versus who isn’t.
- Is the company being considered green certified – LEED Certified – or have they started the process of getting certified?
- Is the company environmentally knowledgeable, and do they use that knowledge in planning their company’s physical site?
- Are they efficient in their overall energy use?
- Do they produce goods sustainably, while reducing waste creation by using materials available locally?
- Do they consciously avoid damaging the environment, and are conscious of the possible pollutants expelled with the use of non-environmentally friendly machinery and vehicles, and serve to limit this?
- Are they aware of and working towards employing and maintaining fair employment practices?
With that said should you stumble upon a company that answers yes to most of these questions, then you can most definitely be assured they’re good prospects for the environmentally conscious investors. Just to be clear though, this list is not exhaustive as you can go ahead and add other criteria as you see fit.
One thing that’s done fairly quickly and requires you to have no prior training or knowledge is to search for your prospective company’s news feeds. Chances are if they’re aboard the environmental campaign, they’ll want to make this public knowledge and through your research you’ll see exactly what they’ve implemented, and plan to implement in the future.
Just keep in mind the best eco-friendly stocks to consider are those typically from companies that manufacture electronic and hybrid vehicles, wind and solar technology as well as produce organic products.
In addition to your own research, it might be helpful to seek professional help when it comes to deciding which companies to invest in. The robo-advisor Betterment has introduced Socially Responsible Investing (SRI) Portfolios that allow you to invest in funds that match your interests. They also allow you to chat with financial advisors via their app for extra guidance.
We all know Financial Advisors are paid well to help clients select appropriate stocks that will produce acceptable returns. However, Betterment provides their streamlined investing process with this extra guidance at no extra cost.
With their help and analysis, you’re more likely to be investing in funds that will align with your specific financial goals. This is a great way to feel good about where your money is invested.