- 2 Dec 2021
- Reading time
- 4 minutes
Because of the environmental awareness that has been created by government and environmental activists, companies that offer carbon-neutral stocks and products have an edge over others that won't do so in the coming years.
Investors that know what is happening are now going for clean investments since it is expected that will give them profits as this is the new trend. Many people have seen the effects of using non-sustainable products such as wildfires and global warming. Clean investments, therefore, are becoming the best choice of investment according to the advice of financial experts.
What Are Clean Investments?
Clean investments are those investments that are made considering the environmental equities it has to offer first before the financial gain is considered. It is the process of keeping the stocks of socially responsible companies also known as clean energy companies in your portfolio. Any investment that is made having the environment in mind before the money is known as clean investments.
Importance of Clean Investments
Due to the awareness that has been created on the importance of environmental conservation, there are many investors out there that put ethical investing stocks first before any other investment in their portfolios and they do that because of the following reasons:
● Clean energy investments are getting popular because customers prefer socially responsible companies to other products that are not Eco-friendly.
● Its profitability means that investors can still make a profit while still considering environmental equities.
● Other companies that are not Eco-friendly are encouraged to embrace this principle.
Clean Investments to Consider in 2022
If you are an investor who wants to make a profit while investing in stocks that accommodate environmental equities, then these clean investments can be considered for 2022:
1. NextEra Energy - Among the Top 5 Eco-friendly Companies:
NextEra Energy is an eco-friendly company that is based in Florida, USA. It manufactures solar and wind energy in high quantities making it one of the largest producers in that industry. Because of its investments in renewable energy, NextEra has seen its annual earnings grow by 8%. Investing in this socially responsible company will help you make a good profit since it has had a total return of 700% in the last 10 years while still offering sustainable products.
2. Brookfield Renewable - a Clean Energy Investments Company
When it comes to renewable energy, Brookfield Renewable is known internationally to be among the best. Production of hydroelectric power is a major part of the company's products. This company offers ethical investing stocks that have high returns for investors. It generates high returns by selling its products(hydroelectricity) in bulk through long-term PPAs. Since the last ten years, its revenue has grown to about 10%, making it a good investment for those into Eco-investing.
3. Ballard Power Systems - An Environment Conscious Company
Ballard power systems is a Canadian company that provides green hydrogen fuel that is not harmful to the environment. Using diesel as a source of fuel for vehicles has proved to be an aid to global warming due to the carbon emissions. By investing in this company, carbon emissions are relatively reduced thereby promoting environmental equities.
4. CapstoneGreen Energy Corp
This company provides energy solutions that are Eco-friendly. It is primarily focused on reducing carbon usage and thereby providing its customers with microturbine energy that doesn't adversely affect the environment. They hold on to the principle of eco-investing and therefore provide stocks for investors that would like to invest in conscious companies.
5. First Solar - One of The Eco-investing Companies
This company specializes in producing solar products which is an important part of the future in the renewable energy industry. The type of solar panels that they produce are thin-film types that convert sunlight faster. Because they are one of the biggest solar products producers, its shareholders are continually on the increase, partly because it is among environmentally conscious companies and also its annual returns have increased by 9.5% in the last 10 years.
6. Orsted - a New Clean Energy Investments Company
This company made a comeback in the energy industry because before it produced energy that wasn't considerate of environmental equities. They made use of coal to produce their energy and they were formally known as Dong Energy before they changed it to Orsted. It started almost immediately to start making radical improvements which made them become a zero-carbon emission energy company.
7. Clearway Energy
Clearway Energy is located in the United States and they are one of the big guns in the renewable energy sector of the energy industry. Many investors consider this company as a good place to have ethical investing stocks because they offer sustainable products and also their stocks are profitable since its annual dividends are expected to grow by 7-9% in the next 5-10 years.
8. Amyris Inc - an Eco-friendly Company
Companies that produce chemical products are considered as one of those that cause environmental damage because of the end garbage it releases into the environment. But at Amyris, it is a different thing since it creates chemical products that don't pollute the environment. This is the main reason why many investors that like having socially responsible companies always add this company to their portfolio.
Because of the continuous awareness that is now being raised by NGOs and the government, both consumers and producers are now aware of the need to use and produce eco-friendly products. Customers and investors now go for socially responsible companies that offer sustainable products and clean energy investments.