Why Eco-investing: Funding into cleantech startups is smart investing now?
As we all know, investing in environment-related initiatives are crucial to preserve and support life on the planet. But before we get into the details of investing in such initiatives, let’s understand what is eco-investing. Eco-investing or green investing is socially responsible investing where investors invest their resources into companies that support or provide environment-friendly products or services or both. These investors encourage the latest tech to support the transition from carbon dependence to sustainable alternatives.
Now, why is Eco-investing considered smart investing? Here are the top 5 reasons.
- Environmental responsibility has gained the spotlight all over the globe
Did you know that global giants such as Walmart, Apple, Panasonic, Kohl’s, Whole Foods, and Chipotle have taken the initiative to support environmental responsibility?
Yes, it’s true! Several other companies are predicted to take leads on environmental issues as the concern for the environment grows. This serves to be an excellent opportunity for investors to gain profits by taking part in environmental initiatives. As per a study conducted by Harvard Business Review, environment conscious companies are the future of the market.
If you invest in an eco-conscious company, you can take advantage of the Huntington EcoLogical Strategy Shares ETF (HECO), an investment growth fund that solely focuses on ecological investments. HECO fund managers take into account three elements to determine the eco-investment strategy
- Credit Worthiness
- Management Quality
HECO is a long term strategy for investors to grow their money by doing right by nature. This fund is based on robust metrics.
- Socially conscious investing is gaining popularity
‘Socially Conscious Investing’ is the new buzz that is not confined to large-scale companies only. It’s a movement in which the consumers appreciate the eco-friendly practices, demanding more from the enterprises. So much so that the company leaders have taken on their role as ‘ecological gate-keeper’ seriously. Socially conscious investing is gaining so much popularity that it has already crossed 3 trillion dollars.
- Eco Investments aren’t confined to one particular sector
The times have changed. No longer are ecology and environment issues limited to the renewable sector. Eco-investments are omnipresent and a part of every sector. Hence, investors need to broaden their horizons and have a greater foresight to make smart eco-investments into mature industries & startups. They need to take a step back from a narrow focus and think about investment strategies with a long term perspective having environmental responsibility as its center of attraction.
- It is your way to take part in protecting the environment.
We all have studied that to enjoy good environmental condition and we need to take good care of it. Hence, promoting sustainable business practices is everyone’s responsibility. Eco investing is just a small practice that can support sustainable startups practices making sure that eco-friendly corporate initiatives will continue in the years to come.
In conclusion, we can say that with the rapidly changing climatic conditions there is a huge need for such investments and efforts to help young and innovative startups in Cleantech space. Incidentally, this stands to offer a lucrative investment opportunity as well as impact potential. With innovative business models and technologies, eco-investing can help in promoting a better future for our planet and sustainable environment as a gift to upcoming generations.