Investing in companies with environmental credentials

So how do investors decide which companies to invest in? Is it through the product, service, potential profit, shareholders or environmental credentials? Well it’s through all of these. However, environmental credentials are being brought more and more into focus when considering decision making from investors.

Investors look at all size of companies and it’s not just the multinationals who want to be custodians of the environment. Smaller companies are also at the front and are building rapport and trust with their customers, and the communities in which they operate.

Although early moves towards environmental considerations were mainly driven by legislation/regulations and less so by consumer demands, individuals and companies are pushing to ensure that everyone up-and-down the corporate chain of command is committed to the cause.  One of the reasons is because increasingly investors are starting to ask questions about non-financial issues and more about the environment.

Investors generally use a positive selection process to identify companies with strong environmental credentials but equally look at companies which are considering change through developing solutions to environmental challenges.  This week a member of the BBC’s Dragons Den television programme posed the environmental question to two entrepreneurs regarding investment opportunities around the company’s credentials. The Dragons investment strategies vary significantly as approaches, requirements and needs are very diverse.  In this particular case one of the Dragons posed the question what do you do with the left over material – is this recycled? So even in Broadcasting the environmental message is brought into focus when considering decision making from investors.

It is likely that this will be strengthened as the worlds trading environment becomes smaller, natural resources are fought over, consumption increases, the wealth gap widens, energy security is common place and the environment is a core concern. With these concerns in mind investors will be looking to benefit from the opportunities presented by the ever increasing global uncertainty around environmental matters, and looking to support companies with a strong environmental policy which is embedded into company operations and the supply chain where applicable.

So whether your environmental credentials need developing or you’re considering change through developing solutions to environmental challenges we at Credibly Green can help you identify and quantify the areas of greatest impact. This environmental reporting process will provide an independent measure of your business operations with a plan for improvements and initiatives to achieve better environmental performance and overall greater environmental management. Remember investors, shareholders, stakeholders and more importantly clients and consumers may only procure from companies going forward with green credentials.

For advice and low cost carbon reports for your organisation see www.crediblygreen.com or contact info@crediblygreen.com, 01746 552423

 

 

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s