Thursday, 25 February 2010

Investing in climate change

Since early industrialisation, there has been a constant struggle between profit and social responsibility; from the early factories polluting the rivers to 1000s of acres of rainforest being chopped down. Moving into the 21st Century, the majority of Scientists are in agreement that the world’s climate is changing and man is directly responsible. As we enter the age of ethical consumerism, the average consumer is more aware of the social and moral implications of their purchases; thus favouring companies with a “green ethos” and carbon neutrality. The climate change funds have identified this social shift towards ethical purchasing and believe that firms that operate a green ethos will have more potential for growth in the future.

Climate change funds have been around for some time but rather than focusing only on renewable energy such as wind farms, solar and nuclear power, they tend to have a bias towards mainstream companies who are environmentally friendly or who will be affected positively by climate change. Climate change funds tend to be wholly invested equities and consequently they experience high levels of volatility, therefore it should only be considered as part of a long-term investment strategy.

Invest in Climate Change now

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