The 10 Best Green Industries for your Ethical Investments Portfolio

Ethical investing is concerned with industries that promote affirmative environmental programs, social justice, sustainable growth, and good corporate governance. Many people still think that investors on green industries may lose their money in the long run because it is difficult to maximise financial return when taking social ethics into perspective.

However, there have been significant players in the green industries in recent years. These companies offer investors a diverse portfolio that gives them reasonable financial return and market growth potential. Here are the 10 best green industries for your ethical investments portfolio:

1. Solar Energy
There is a growing solar energy industry that includes solar cell panel and component manufacturers and solar energy providers. Prominent solar power stations are scattered throughout New South Wales, Victoria and Northern Territory.

2. Wind Power
The wind power sector not only specialised in the generation and sale of power, but also in the design and construction of wind turbines. This high-growth industry has spawned windmill farms across South Australia, Western Australia and Queensland.

3. Water Utility
There has been a growing need for alternative sources of water in Australia because many states are facing desertification and drought. Ethical investments have supported companies that operate water purification and desalination plants.

4. Waste Reduction
Ethical investments in the waste reduction and recycling sectors have led to the establishment of various recycling centres throughout Australia. The number of recycling facilities that recycle plastic, metal, and organic waste have increased after the establishment of a national voluntary recycling plan by the Australian and New Zealand Environment and Conservation Council.

5. Green Retailing
The green retailing sector sells products that are either made of reused, recycled, or environmentally friendly material. Most green shops even provide recycled paper or fabric bags to their customers.

6. Organic Farming
Venturing in organic farming and sustainable agriculture are sound ethical investments because these eco-friendly methods don’t utilise harmful pesticides and chemicals but apply sustainable farming and animal management practices. Agricultural produce, livestock, and dairy products are sold fresh from the farm without the aid of preservatives and chemicals.

7. Fuel Cell and Biodiesel
Many investors are supporting ethical investments in the effort to find fuel alternatives. In this case, fuel cell technology and biofuel companies have become prime movers in the advancement of clean but reliable fuel that are now used in electric vehicles and hybrid cars.

8. Green Chemistry
In an effort to reduce the dependence of hazardous substances, the chemical industry has developed new chemical products that are safe to use and environmentally friendly.

9. Pollution Control
The pollution control industry is on the rise following the growth of companies that specialise in reducing greenhouse gas emissions. Ethical investing in this industry is still a big challenge to investors because very few companies have developed cheap pollution control technologies.

10. Energy Efficiency
Few companies specialise in this field so you have to choose those who have relative success in their line of business. They help individuals and businesses become energy efficient and comply with local energy regulations.

Green industries have created a new niche market with consumers who are concerned about the environment and are willing to spend more on eco-friendly products and services. Ethical investments are encouraged by local and national government policies, non-governmental organisation initiatives, and corporate plans.

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