Green Investment Tips
Investing for a green future? You might start with a look at this year’s Sustainable Business 20, an international review that provides examples of the types of firms that might make solid, environmentally responsible investment.
Note: This is not a “buy” list of recommended stocks. Always thoroughly research any “green” company or mutual fund to make sure it is a good investment for you and genuinely committed to conservation or the environment. If you want to align your social and environmental values with long-term financial goals, you may want to consult a professional financial advisor with expertise in green investing.
Energy Efficiency
Standouts: Comverge (Nasdaq: COMV) and Fuel Tech (Nasdaq: FTEK) in the United States; Royal Philips Electronics NV (NYSE: PHG) based in Netherlands; and Novozymes (Copenhagen: NZYM.CO) of Denmark.
Comverge sells energy-management technologies. Philips leads market share in LED lighting to replace incandescents. Fuel Tech technology cleans up the dirtiest fossil fuel plants. Novozymes replaces synthetic ingredients in a host of industries with biological enzymes.
Renewable energy
Standouts: First Solar (Nasdaq: FSLR) and Ormat Technologies (NYSE: ORA), United States; Renewable Energy Corp - REC (Oslo: REC.OL), Norway; Schmack Biogas AG (Germany: SB1B.DE), Germany; and Vestas (Copenhagen: VWS.CO) Denmark.
REC is one of the top solar companies in the world. First Solar is the first public company to get thin-film technology into low cost production. Vestas remains the world’s premier wind power company despite growing competition. Ormat is a world leader in geothermal energy. Schmack Biogas is a world leader in turning organic wastes into electricity, heat and fuel.
Natural Resources
Standouts: Best Water Technology (Vienna: BWT.VI), Austria; Precious Woods (Geneva: SWX: PRWN), Switzerland.
BWT Water Technology produces a water filter for households that uses magnetic fields instead of chemicals. Precious Woods is the world’s only publicly traded sustainable forestry company, operating in the Brazilian and Congo rainforests.
Green building
Standouts: Herman Miller (Nasdaq: MLHR) and Interface (Nasdaq: IFSIA), United States; Land Securities (London: Land.L), Britain.
Land Securities, the UK’s largest property developer and owner, meets all green building standards in its properties. Interface uses sustainable materials and processes to make carpet tiles. Herman Miller is two-thirds of the way to achieving a zero ecological footprint in its furniture making.
Consumer products
Standouts: Canon (NYSE: CAJ), Japan; NIKE, Inc. (NYSE: NKE), United States.
Camera maker Canon plans to cut C02 emissions by half by 2010 and is redesigning products accordingly. Nike is transforming products using green design principles, rooting out waste and toxics, and planning for carbon neutrality by 2015.
Natural foods
Standouts: Chipotle Mexican Grill (NYSE: CMG), Green Mountain Coffee Roasters (Nasdaq: GMCR), Whole Foods Market (Nasdaq: WFMI), United States; Groupe Danone (DANO.PA) Netherlands.
Groupe Danone, the world’s largest dairy company, is converting to organic dairy and sustainable agriculture. in Bangladesh and India. Whole Foods, and Green Mountain Coffee Roasters, are both “climate neutral” operations and are credited for broadly popularizing natural foods and sustainable coffee across the United States. Chipotle Mexican Grill, with more than 600 restaurants, leads in integrating organic ingredients into fast-foot menus.
About the survey
Who compiled the list? Progressive Investor newsletter, published by SustainableBusiness.com, which tracks sustainable stocks, and KLD Research & Analytics.
What’s the criteria? Companies are evaluated based on how well they conduct their business in keeping with green principles. Some companies are featured because they are working to solve environmental or social problems.
More on the Web:
SustainableBusiness.com, now in its 12th year, provides global news and networking services to help green businesses grow: Daily Sustainable Business and Investor news, Green Dream Jobs, and Progressive Investor.
Phil Hands is an editorial intern for Lee Enterprises.
