Investing Sustainably to Tackle Climate Change
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Investing Sustainably to Tackle Climate Change
After the events on Tuesday, it is clear to see that global warming is having a significant impact on the climate - can you invest more sustainably?
Counter Cut’s content this month is sponsored by The New Talbot
We saw a plethora of fires scattered around London leaving the fire service stunned when they lacked the resources to cope.
Fire seasons are common in many regions around the world and it’s scary to think this could be a common occurrence in the UK.
As an individual it’s difficult to make changes that have a significant impact on the climate. The little things like recycling and car-sharing seem pointless when you see China pumping out 10 billion metric tons of CO2 every year.
Green investing is a good start for individuals to hold companies accountable.
Your investments may be leaving a carbon footprint and by choosing to invest in companies with net zero commitments you are rewarding sustainable practices at a larger scale.
This will incentivise companies to go green as there is a financial benefit too, this has already been seen in many FTSE 100 companies that have adopted eco-friendly habits.
With lots of ‘greenwashing’ by companies trying to improve their public image, how does an investor choose a truly sustainable stock?
Well, it comes down to the ethics of the individual and what they believe in. Before investing in companies, you should be researching the stock and drawing up your own boundaries.
If you want to start investing green and you don’t like doing extensive research into individual stocks, then a fund that specialises in sustainable investments might be the solution.
The popularity of sustainable investing has gone up and thus the number of sustainable funds available to meet this demand.
Impax Environmental Markets is the largest environmental investment trust in the UK. It focuses on clean energy, energy efficiency, pollution control and sustainable food. The portfolio is quite broad consisting of stocks you probably have never heard of.
Listed below is Impax Environmental Markets' top 10 holding’s list.
The benefit of investing in a fund like this allows you to diversify and globalise your investment whilst still only investing in companies with strong sustainable beliefs.
Obviously like most investors the goal is to make money, so let’s have a look at this fund’s financial situation.
Well, it hasn’t been performing recently, but then again nothing has right now. If we look at the 5-year chart however, it has gone up nearly 90%, the FTSE 100 went down -1% in the same period.
5 years ago, if you invested in green companies and not the general UK stock index then you would be 90% wealthier. A surprising statistic.
It’s clear now to see that maybe keeping your investments green is not only the right thing to do but also the most profitable. Not only that but investing just becomes way more enjoyable when you involve your own passions and ethics.
Written By: Nial Dixon
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