Green Investments are Good Stock Options

More companies are now realizing that it’s important to preserve and protect our planet. In fact, Congress already passed an Energy Bill in 2005 which offers subsidies for those companies willing to implement clean energy technologies.

There are a few companies that embraced the change like: GE (General Electric) implemented environmentally-friendly policies; Vestas, the wind turbine company, developed new environmentally-advanced technologies; and Vittell, a French mineral water company, paid farmers to use fewer chemicals in plants.

Therefore, it follows that “green investments” are defined as mutual funds, ETF’s, bonds, stocks, and other investment vehicles of companies implementing energy efficiency or producing environmentally-friendly products. It’s likely that more corporations will fall under the green investments category since President Obama has called for employment opportunities and growth in these kinds of corporations.

These “green” companies are going for socially responsible initiatives (SRI). These include anything from deforestation and protecting parts of rainforests to introducing electric cars or promoting recycling programs.

A national membership association, Social Investment Forum, focuses on environmentally and socially responsible companies. It also keeps track of financial performances of international global foreign funds, medium and small caps, equity large, and bond (fixed income).

Furthermore, the organization also reported 260 mutual fund products with $201.8 billion assets in 2007 compared to only 55 SRI funds with $12 billion assets in 1995. Since there’s tremendous growth in companies adopting green policies, it’s very likely that you’ll see more green investment vehicles in the future.