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Corrie Johnson
Corrie Johnson

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What’s the best way to buy environmentally friendly stocks to support companies that do good?

Discussion (5)

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Ben Halpern • Edited on

There are a number of sustainable index funds (ETF)... some of which will bundle holdings in a certain area like green energy, and maybe some that are broader. You'll likely want to do a bit of research before getting going, but once you get in you can probably just let it sit.

Overly "green" ETFs are not exactly low risk because, while somewhat diversified, they are still typically betting on certain sectors. You likely want to check out some general index funds that exclude fossil fuels. These are funds that will basically do stuff like track the S&P 500, but avoid oil. This is a cleaner way to buy index funds vs some of the more "generic" ones, and lower risk than green energy ETFs. Here is a resource.

Along with that, one way to make individual sustainable stock picks is to track IPOs... As you can imagine a lot of the more sustainability-focused companies popped up in the past decade or so, so they are generally newer companies just going public.

Plenty of ways to debate the prospects of these companies or where they fit on the sustainability curve, but Beyond Meat is still reasonably priced relative to what it cost at IPO. Allbirds IPOs tomorrow, and if you want to take a flyer on a USA EV company that still isn't at scale and may be flying under the radar, check out Arcimoto. Rivian, probably a safer EV bet than Arcimoto, is also going public soon.

I am some rando on the Internet, so please don't put too much value on my picks. And all of these companies mentioned are absolutely high risk. You should balance this with sustainable index funds!

Hope this helps.

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Corrie Johnson Author

🙏 thank you for this.

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Julie Wong

Take a look at Acorns it’s a great investment app that makes it easy. For only cost $1 a month the app automatically invests your spare change for you. The best part is that it offers the option to choose a green/sustainable portfolio that only invest in green companies.

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Corrie Johnson Author

Thank you 👍

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Emilie Scofield

As Ben mentioned there lots of apps that offer green ETFs and various investment strategies. But there’s a lot of greenwashing happening too. I’ve compiled a short list for different countries:

US/Canada - Carbon Collective, Betterment, Acorns
UK - Nutmeg, Circa5000 and Clim8 Invest
NZ - sharesies
Spain - Triodos bank
France - La Nouvelle Economie Fraternelle NEF

FYI this is not financial advice. Please, please do some personal research before investing in anything.