Current events and the political climate have inspired many people to invest in a way that can make a difference.
Investors can use several different strategies to build and diversify their portfolios to ensure financial success. One uses renewable energy.
Yet, one emerging trend changing the way businesses and investors is a concept known as sustainable investing. With various sustainable methods at the forefront, the future of climate change seems to be looking a bit brighter – well a bit better than before.
Even if it is just a slight mini-facelift of the earth’s surface.
If you are thinking about investing green then going for sustainable investing could be for you. It not only helps shape the world by contributing to positive social change but it’s proven that both individuals and businesses can benefit financially.
The goal is to, whenever possible, use investment dollars to promote positive societal impact, corporate responsibility, and long-term financial return.
However, there is one type of investment that stands out from the rest – renewable energy.
This convenient alternative to fossil fuels or coal is becoming a buzzword more and more these days. But somehow it is still not growing as fast as our planet needs it to.
I mean climate change is a real threat and to preserve our species, we need to shift our fuel sources to renewable alternatives such as wind, solar power, water or bio-oils.
As the technology to make renewable sources is expensive and constantly developing, billions of dollars are being rolled between companies, governments and NGO’s.
Does this mean we need even more wind turbines, water dams, solar panels or ethanol for our cars?
Well, it seems so.
Take Saudi Arabia, for example. They invested $50 billion into renewable energy and their prince, Mohammed bin Salman announced last year that they would generate 50 per cent of their energy from renewables by 2030. Not to mention planting 10 billion trees in coming decades.
The country that controls oil prices and is one of the richest nations planned to invest a ten-year strategy towards green energy a few years back. It is still going strong.
Renewable energy is a modern industry. In 2020, Singapore planned to launch a blockchain market platform for companies that are built and designed in-house. This enabled organizations to trade via online certificates.
These digital pieces of paper represented energy generated from renewable resources. The purpose was to create a platform that could become secure, trustworthy and traceable for each transaction.
The world’s superpowers (the leaders) want to utilise and capitalize on it. Since Asia is so involved in renewable energy, you would expect one of the biggest economies on the continent to help them mediate the process.
According to Forbes, renewable energy investments are delivering massively better returns than fossil fuels in the U.S., the U.K. and Europe.
Just last year Amazon’s Jeff Bezos just named the first recipients of his $10 billion climate fund. It was designed to combat the effects of climate change by issuing grants to scientists, activists and other organizations in their efforts to “preserve and protect the natural world.”
Elon Musk’s electric vehicle and renewable energy company Tesla is poised to become the largest company ever added to the S&P 500 ( the stock market index tracking the performance of 500 large companies listed on stock exchanges in the United States).
At its current market cap, Tesla is bigger than the five largest companies in the S&P 500 energy sub-sector combined.
It seems that renewable energy is one to watch out for because they are a combination of natural sources and intelligent technology.
With them, we can generate enough heat and electricity for all our homes, businesses and production needs.
Essentially renewable energy usage can reduce pollution and minimize the disease rate. Further, it reduces the emission of greenhouse gases like carbon dioxide.
So, why not?