Environmental investing is about philosophies and portfolios. What green investors seek to do is put their money into organizations with some environmentally-friendly goal in mind. Whether investors reward companies that actively minimize their environmental impact or use their money to put pressure on those that need to improve depends on the investor, but the fact remains that their investment is helping the planet.
If this sounds like something you want to do, Falcons Rock Impact Investments has portfolios for you to choose from. However, if you are unsure about green investing here are five things you should know.
1. You Don’t Have to Choose between Your Portfolio and the Environment
When you focus on investments that put a priority on sustainability, it doesn’t mean you are sacrificing performance. It’s possible to invest in moral organizations, and it’s likely as profitable as investing in the traditional way.
2. It’s Not a Fad: It’s a Trend
Having a long-term perspective on both the world and your investments is a good idea. Sustainability is essential to any business, and with environmental investing, there’s pressure on businesses to engage with what their customers want. Those organizations that keep the environment in mind when they do their business can see rewards, both in their longevity in the marketplace and in investments.
3. The Environment is on Everyone’s Mind
Even if you’re not an environmentalist, you should care about the world you live in. Increasingly, organizations are starting to as well. Being conscious of the environment is good for the public image, and a lack of care could lead to fines that cut into shareholder profits.
Furthermore, all industries have environmental concerns, and there are always ways to reduce energy usage and carbon footprints. Whether it’s an office that wants to clean up its workers’ commutes, a manufacturer that’s working toward using alternate energy, or a farm looking to produce humane, organic food for a local market, everyone can do something.
4. Anyone Can Do It
You might be thinking that you’re not wealthy enough to invest like this. The good news is that sustainable investing is not limited by the size of your portfolio or how cautious you are. There are plenty of options out there for you. In fact, getting started early when you’re not wealthy is a great way to learn more about businesses and investments, while putting money toward good causes.
5. This Isn’t New, and it’s Not Just for the Young
Investing in causes you believe in has been around for a while, but you might be thinking that environmental investing as it exists today is the purview of startups and younger businesses. This isn’t true: there are companies that have been environmentally-friendly for a long time, and they might surprise you. Sure, Whole Foods can immediately come to mind, but you might not think about companies like eBay, which is a business based around reselling old things rather than producing new ones. There is diversity in how to be kind to the environment, organizations, and the types of investments that are out there if you look hard enough.
Falcons Rock Impact Investments has portfolios that keep the environment as a focal point. Learn more today.