Tuesday, June 23, 2009

Green Investments and Stocks

Green Investments are taking center stage for a growing number of investors. Whilst requiring good returns they want to be sure that the companies they invest in are taking a green or ethical approach to business. The strategies that companies or funds use to select their business involvement will vary. Some may look at just environmental issues whilst other may have a wider social agenda at work.
The advent of high energy prices and the need to convert to low emissions of greenhouse gases has made energy stocks one of the primary green investments available. Solar power, wind generators, hydro-electric, geothermal sources are all set to expand and provide a wealth of investment stocks and funds that are good for the environment whilst providing consistent returns.
Smaller companies can be inherently volatile so a diverse portfolio including funds that spread their investment over both large caps and smaller dynamic start-ups will smooth out the risks. As well as the energy producers the major car makers are lining up to show their green credentials. Companies such as Honda and Toyota are developing bio-plastics and hybrid-drive cars and many such cleantech companies are showing their colors.
As part of a green revolution the fair-trade movement provides opportunity to get involved in ethical investments. Food production is inevitably involved in the whole ecological issue. Witness the ongoing debate about bio-fuel production verses food shortage and rising food prices. This has led to a re-evaluation of using prime food growing land for production of bio-fuel crops. What appears a good solution can often have unseen consequences.
Deciding what you will invest in, what is green and ethical and what is not will be a personal decision. The criteria you use to select or dismiss opportunity will vary depending of the level of commitment and understanding of the issues. Discounting a large corporation because of their past activity may mean missing an investment that could have the greatest positive impact on the future. A pragmatic rather than idealistic view will no doubt be the order of the day.
Wind Power
Wind power has become a notable force in green energy generation. With cost per unit of electricity roughly the same as coal fired stations the advantage of reducing greenhouse gases gives a major incentive to the industrialized nations to promote.
Investment in wind farms will be expanding as governments try to reach emission targets giving the opportunity for the small investor to put his money into an environmentally sound investment. Offshore wind farms as well as the naturally windy central plains are set for massive expansion as the legislation catches up with the developers.

No comments: