Guest Post
Ethical investment is a huge talking point in the modern age, with an estimated 47% of Brits now likely to include sustainable and Eco-friendly assets over traditional vehicles.
If you are going to make such investments profitable as well as sustainable, however, you will need to adopt a strategic and informed mindset. Here are some key asset types that enable you to benefit financially while aiding the long-term future of the planet:
i) Green bonds
In many respects, there’s very little difference between green and traditional bonds. The core differentiator is that green bonds can mobilize resources from domestic and international capital markets for climate change adaptation, as well as environmentally-friendly building projects and renewables.
In its most simple form, a bond issuer (usually a government body) will raise a fixed amount of capital, repaying this and any accrued interest over time.
This is considered to be a relatively safe and low-risk investment option, while targeting bonds with green credentials can provide a significant financial boost to the environment.
Curious about green Investing. Read here.
ii) Invest in green stocks and shares
The notion of corporate social responsibility (CSR) is extremely popular in the commercial world, with companies increasingly motivated to minimise their carbon emissions, leverage sustainable process and dispose of waste ethically.
This offers a considerable opportunity to green investors, who can target brands that have strong environmental credentials and invest their money in fixed stocks and shares. The key here is to identify successful companies that have a key focus on their processes and materials that they use, while also prioritizing those that are simultaneously achieving growth and profitability.
If you need help with this, you could consider partnering with expert services through providers such as Bestinvest. Companies of this type allow you to target a range of available green options through a self-invested personal pension (SIPP), making it easier to strike the balance between saving the planet and generating a desired return.
iii) Carbon Emission units
The carbon emissions market is a relatively recent entity and one that offers genuine liquidity to investors. Here, both corporate and individual investors can trade carbon credits, usually under cap-and-trade schemes that help to offset GHG reductions.
One permit or certificate equates to one metric ton of carbon dioxide, while it’s important to note that the most reputable and profitable credits must be issued government bodies. This has proven to be an exceptional way of regulating carbon emissions in Europe and other areas of the world, particularly as credits can be sold for a fixed financial value.
Although this can be a complex market to master, its high level of liquidity and low investment costs make it exceptionally appealing to knowledgeable or experienced traders. Similarly, it’s a market that enables you to add value to the environment by helping to minimise carbon emissions across the globe.
About the Author: Andre Jackson is a freelance writer working in the property market and a green industry enthusiast. You can reach him on andre.jackson11755@gmail.com
