You are hereBasics of Responsible Investing: ESG Data: Environment
Basics of Responsible Investing: ESG Data: Environment
Environmental concerns are obvious these days. Whether you believe in global warming or not, it is a generally accepted scientific theory explaining a current phenomena of global environmental degradation. The human component of climate change is mostly found in human activities around products and services created by companies and governments. Therefore, you CAN (and DO) affect the world by owning and profiting from companies that are sustainable.
Environmental sustainability is critical. Does the company do harm to the environment due to:
- manufacturing processes
- supply chain waste
- producing harmful goods
Also, there are quite a few companies which work to produce goods and services which are specifically good for the environment such as solar panel manufacturers, biodegradable packaging, and smart cars, to name only a few.
Lastly, established companies, often with histories of problematic environmental regard, can turn a new leaf. Companies such as Walmart, GE, and BP (and many others) have taken significant steps towards more sustainable environmental practices. Shades of green. Yet BP is responsible for the Gulf of Mexico oilspill, which shows that a company can make socially responsible moves, and still make major mistakes. That's life.