Select a Green Investing Sector
Green investing encompasses a variety of sections such as natural and organic foods, environmental cleanup, renewable energy and pollution controls. These sectors are then broken down further into subgroups and in some cases, sub-subgroups. Let your social, personal and environmental interests help you zero in on which green investing sector is most suitable for you. Once you decide this, then you need to find out how much financial growth potential the sector has.
Green Investing Screening
Screen each green investment prospect by creating specific guidelines and boundaries for what is most important to you. If you decide to invest in mutual funds as a form of green investing for example, figure out if you wish to use a positive screen or a negative screen in relation to the companies you are considering.
When it comes to perusing green investing opportunities, greenwashing must be kept in mind. You must do your homework to guarantee that a company’s claim that it is green is able to be easily verified. Greenwashing involves making sure that what a company claims to be true is really true. Find out what technology the company uses and if what they do supports your own values and beliefs. Ask yourself this pertinent question- “What really makes a product or service green?” Greenwashing is when a company makes something appear to be green when really it is something else. Steer clear of these so-called green investing opportunities as they are bad news.
Green Investment Strategy
Green investing can be as tricky and as problematic as any other type of investing and that is why you need a plan. Create a strategy for your green investment that will help provide you with the information you need to make a wise and informed decision that is in line with your belief system and will be also prove to be financially lucrative.
Your green investment strategy should include:
· Asking a lot of relevant questions
· Looking over Sustainability Indexes
· Reading Annual Reports as well as CSR Reports
· Talking with a Green Investment Analyst