Gone are the days of choosing between sustainable change and growing your wealth. Turns out, you can do both. Here are 4 types of green investments that can help you grow your wealth while backing the production of goods and services that protect the environment.
Green stocks let you invest directly into businesses that produce goods or services related to protecting the environment. Examples include renewable energy companies and electric vehicle manufacturers.
When you own stocks in a company, you own a small portion of that business. As a stockholder, you don’t take part in day-to-day operations. You may be able to vote in corporate shareholder meetings, but otherwise, you simply buy stock and either hold it or sell it whenever you choose.
Here are some green stocks that may be worth watching:
Stantec provides engineering, architecture and environmental consulting services in the areas of infrastructure and facilities in Canada, the US and other international markets. It has been ranked as one of the most ecofriendly companies in Canada and one of the most sustainable companies in the world.
Brookfield Renewable Partners L.P. owns a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India and China. The company generates electricity through hydroelectric, wind, solar, distributed generation, pumped storage, cogeneration, and biomass sources.
Northland Power is an independent power producer that develops, builds, owns and operates clean and green power projects in North America, Europe, Latin America and Asia. The company produces electricity from renewable resources such as wind, solar or hydropower as well as clean-burning natural gas and biomass.
Boralex develops, constructs and operates renewable energy power facilities primarily in Canada, France and the United States. The company holds interests in many wind power, hydroelectric power and solar power stations as well as a thermal power station.
EverGen Infrastructure acquires, develops, builds, owns and operates a portfolio of renewable natural gas, waste to energy and related infrastructure projects in British Columbia. It operates an anaerobic digestion facility, the Zero Net Waste Abbotsford project, the Sea To Sky Soils project, the GrowTEC project and the Radius project.
Green bonds are just like regular bonds, but funds go toward environmental projects to fight climate change, prevent pollution, protect ecosystems, provide clean water and more.
You can diversify your investments with green ETFs that hold many securities. Some popular green bond ETFs are:
In 2021, the Government of Canada announced the Green Bond Program, a fixed-income debt security issued by governments or companies to fund environmental initiatives. Individuals can invest by buying into ETFs or mutual funds that hold green bonds.
Invest in climate change with exchange traded funds (ETFs) that hold stocks in hundreds of individual companies focused on improving the planet. Popular green ETFs include:
These funds are made up of socially conscious companies looking to promote environmental responsibility. For example, the Aspiration Redwood Fund is a fossil fuel–free fund comprising sustainable businesses focused on people and the planet.
Examples of green mutual funds include:
Investing isn’t the only way to support environmental protection initiatives. You can also take part in crowdfunding campaigns, donate to environmentally-focused organizations and spend on ecofriendly brands.
There are crowdfunding sites for almost everything these days—real estate, peer-to-peer lending, donations and even green businesses. If you’re eager to help a budding business and make an impact on the environment, here are a few platforms to check out:
Sometimes the most effective way to make a change is to donate to the organizations that are already making a difference. There are several environmental charities and groups that have strong, evidence-based track records for actively fighting climate change. Some of those are:
Look at what brands you’re currently spending your money on and see if there are any eco-friendly alternatives. For example, Beyond Meat makes meat alternative products and is available in major grocery stores like Sobeys, Whole Foods, Freshco, Foodland and more.
If you’re looking for ecofriendly clothing, check out Free Label, which focuses on producing Canadian-made clothing using sustainable materials and ethical employment practices. You can also take a look at Thesus (formerly Alice + Whittles), which makes quality women’s footwear using mostly sustainable materials.
To make comparing even easier we came up with the Finder Score. Trading costs, account fees and features across 10+ stock trading platforms and apps are all weighted and scaled to produce a score out of 10. The higher the score the better the platform - simple.
There’s never been a better time to invest for the environment—whether you want to buy green investments, make charitable donations or buy ecofriendly products. Think through your financial goals, then choose the methods that will empower you to put your dollars to good use.
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