Green Investing - A Complete Guide
What Is Green Investing and How Does It Work?
Green investing aims to support business practices that have a positive environmental impact. Green investments, which are often grouped with socially responsible investing (SRI) or environmental, social, and governance (ESG) criteria, focus on businesses or projects that are committed to natural resource conservation, pollution reduction, or other environmentally conscious business practices. Although green investments fall under the SRI umbrella, they are more specific.
To support green initiatives, some investors purchase green bonds, green ETFs, green index funds, green mutual funds, or stock in environmentally friendly companies. While profit is not the only motivation for these investors, there is some evidence that green investing can match or even outperform traditional assets in terms of returns.
