10 Best Green Companies to Invest in 2024

What are the best green companies to invest in this year? And, how do I choose among the numerous companies purporting to be green? If you are searching for a good green company to entrust your money with, this article offers just that.

Green companies are the new investment frontier after the tech industry. Savvy investors are now putting their money into green energy companies like solar, geothermal, and waste management. These companies focus on making a profit and care about the environment and social well-being.

The mission of most green companies is social responsibility, fair trade, and making a profit for investors. Investors have recently discovered that investing in sustainability is an excellent way to use their money towards a positive cause and still make money.

However, before you invest in a green company, make sure that you vet them accordingly to make sure that they meet all the qualifications.

So, here are some of the best green companies to invest in today. We’ll see that in a bit. But first!

How to Identify the Best Green Companies to Invest In

Here are the key points that qualify a green company;

1. The Focus is on Reusing or Renewing

The first thing to look for when searching for the best green companies to invest in is if they focus on operations. A good green company should focus on reusing or renewing natural resources. The goal is to encourage sustainability by using our natural resources wisely.

Before you consider a company green, consider its mode of operation and how it produces its products. If it uses renewable power like solar, geothermal, or wind, it qualifies as green. Waste management and renewable energy companies are good examples of green companies where you can invest.

2. Encourage Fair Trade

The best green companies are not just about environmental sustainability. These companies also care about other issues like human rights, employee welfare, and local community promotion.

When choosing a green company to invest in, make sure that they encourage fair trade. This could be through job empowerment, income sustainability, and community well-being.

Their business should not oppress the community by taking away jobs or negatively impacting the environment. Instead, they should be focused on making positive changes that make the community a better place. A green company should also adhere to the local government and community regulations.

3. Safety

Every green company’s top priority should be encouraging employee, environmental, and consumer safety. This means producing safe products that meet quality standards.

A green company should encourage safety in the manufacturing process by providing safe working conditions for the employees. If the company exposes the employees, environment, or consumers to toxins or harm, it is not a good company to invest in.

3. Sustainable Capitalism

Sustainable capitalism is about giving value to consumers without exploiting them. It aims to reduce consumerism by ensuring that the product is affordable and still offers the desired value.

Promoting social good by promoting the lives of the local community while making profits for the investors should be the goal of every green company.

If the company can make profits while being socially and environmentally responsible, then that is a green company. And it can be an ideal company to invest in.

4. Environmental Focus

Every green business should focus on protecting the environment. For instance, some companies focus on waste management to reduce environmental pollution. Solar energy companies save the environment by providing alternative sources of power to destructive fossil fuels.

If a company depletes the environment by causing environmental waste or harm, it is not a green company. Green companies are all about creative ways to protect the environment. They should have a net positive environmental impact.

The Best Green Companies to Invest In

1. Sunrun (RUN)

Sunrun has revolutionized the solar energy business. After installing around 20% of the country’s solar panels, it is one of the leading clean energy companies in the United States.

The company is not just about helping more homes install solar panels. It is taking the solar business to a new level through “virtual power plants.” With virtual power plants, customers can sell the excess solar power stored in batteries.

In the last few years, the company has made remarkable strides, one of which was the acquisition of its biggest competitor, Vivint Solar. Sunrun has also been at the forefront of campaigning for government legislation that encourages the growth of green energy. This way, it’s encouraging positive changes in the renewable energy sector to benefit the planet.

Average stock price: $21.06

See Related: How to Store Solar Energy for Later Use

2. Ormat Technologies (ORA)

ORA is a leader in geothermal energy, with operations in Central America, the United States, Southeast Asia, and Africa. Geothermal power may not be as popular as solar energy, but it’s quickly gaining momentum globally.

The company operates 25 power plants worldwide and is responsible for activities like site construction and management. As part of its business setup, it is also involved in administration, energy storage, electricity, and other business segments.

ORA is known for its innovation in design development, building, and operating recovered geothermal power plants. In the last few years, it has expanded its portfolio in Kenya, Honduras, and the United States.

See Related: Best Green Apps for Sustainable Living

3. Republic Services (RSG)

Republic Services (RSG) is all about waste management and recycling. It is the second-largest waste management company in the United States, with close to 200 landfills. RSG’s mission is to create renewable energy through recycling.

The company focuses on non-hazardous domestic waste in households and considers itself an environmentally friendly company. RSG is a big company with over 30,000 employees. Although the company might not be global yet, it is a great one to invest in, with 14 million customers across the United States.

4. Mowi ASA (MHGVY)

Mowi ASA (MHGVY) is an environmentally friendly company that aims to provide consumers with sustainable seafood. Investors consider Mowi ASA a safe and stable company because it has been around for years with less volatility.

It might not be as vibrant as other modern green energy investment companies, but it is a safe option for beginner investors. As revealed in the 2021 report, the company is on its way up due to an increasing demand for salmon.

The company focuses on farm-raised salmon and is involved in the products’ harvesting, processing, and marketing.

5. Enphase Energy (ENPH)

Our list would be incomplete without mentioning Enphase Energy. ENPH is a unique solar energy company known for using individual micro investors rather than a single investor in its solar panels.

This unique solar manufacturing technology creates consistency in solar power production. It enables solar panels to work individually, so users can continue getting solar energy even when one solar panel stops working.

ENPH might not be a big and popular company, but its work makes it one of the top clean technology companies around. The company focuses on residential users, and currently, it has connected 1.5 million households with 36 million microinverters.

ENPH is only in the United States, so international investors might hesitate. But it’s one of the green companies that are worthy of investment.

6. NextEra Energy (NEE)

NEE focuses on wind and solar energy in North America. The company has sites in Wisconsin, New Hampshire, Iowa, and Florida. It has powered 5 million households, making it one of the best green energy companies to invest in.

Generally, it is an all-rounded company involved in the generation, transmission, and sale of power in Florida. Its mission is to develop, construct, and manage power facilities for the distribution of wholesale energy.

Apart from running the renewable energy part of the business, they are also involved in other activities. These include creating physical contracts, trading activities, and marketing. Their main source of income is distributing gas and electricity to Florida residents.

7. Ford

Who doesn’t know Ford? The company has been there for over a century now! And its products can speak for themselves. For years, Ford has been known as an automaker giant.

But, it can now be considered a green company. In recent years, the company has been focused on producing electric cars, thus saving the world from toxic greenhouse gas emissions.

Ford is committed to the transition to renewable energy and is currently setting up structures. Their goal is to use 100% local renewable energy in their plants by 2035.

In 2022, the company started the construction of its first e-transit van to move away from cars that use fossil fuels. The company is also working with local dealerships worldwide to help them reduce their carbon footprint and save the environment.

8. Nio

Nio is a China-based company known for innovating smart vehicle features. Some of their products include sensors, soft-opening doors, and floating car displays. Recently, they invented a solid-state battery that can travel 620 miles.

In recent years, they have been expanding their operations outside China and have plants in Norway and other parts of Europe. The company’s main focus is encouraging autonomous driving and reducing the need to export cars from Europe.

The recent expansion to Europe is a bold move since the auto market is already established there, but there is a need for strong electric cars, so we expect positive results. The company advocates for a greener, sustainable future.

If you are looking for some of the best green technology companies to invest in, Nio certainly fits the description.

9. Canadian Solar

Canadian Solar is a global leader in the manufacturing of everything related to solar energy. Founded in 2001, it has expanded to over 20 countries.

Apart from being a leader in solar equipment manufacturing, the company also manages solar plants. This global energy provider is known for competitive prices and high-quality products.

Unlike other solar companies that work directly with consumers, Canadian Solar’s main customers are distributors, installers, and project developers. And although its renewable energy stocks recently took a deep dive, it is still considered a strong buy for investors.

10. Beyond Meat

Beyond Meat is a sustainable food company that promotes vegan foods. It was founded in 2001 in California, United States, but supplies meat alternatives globally.

The company seeks to create meat alternatives for sustainable food options. One of their popular foods is the plant-based burger, which is a good option for vegans. If you want to reduce or avoid meat consumption but still enjoy normal foods, this food is for you.

Its goal is to help people switch to vegan options since factory meat farming is responsible for 90% of the emissions.

See Related: How to Buy Green Bonds

Reasons to Invest in Green Companies

Three hands holding eco-friendly reusable bags with nature-inspired designs.

Finding the best green companies to invest in isn’t enough. First, it’s important to understand why these companies are the best places to put your money.

Here are the top reasons why:

Green Energy New Investment Frontier

Renewable energy is the new investment frontier, as almost all sectors have already been exploited. Tech, fashion, and finance have been there for some time and might not be as exciting anymore.

Investors who want to try something new now consider green energy the new investment frontier. These companies have been around for less than 50 years, so they have huge growth potential.

Green companies can also be considered the future, as the need to care for the environment and create sustainable companies grows.

Fossil Fuels are Becoming Unstable

The crude oil market has been unstable for the past few years due to the pandemic and political instability. The instability in the fossil fuels market has forced investors to look elsewhere. Now, everyone is thinking about solar, geothermal, or wind energy.

These companies are now being recognized and plan to expand. In the next decade, we will likely see an increased shift from fossil fuels to renewable energy sources.

The only way to prepare for this move is to invest in some of the green energy companies producing solar and other alternative energy sources.

Encourage Sustainability

The best way to encourage sustainability is to invest in green companies. We live in a world with limited resources, meaning we must take care of what little we have left. Using fossil fuels harms the environment, and in the future, we might end up destroying this place we call home.

If you want to encourage sustainability, you can do that using your money. The only way to care for the environment is to support green companies through funding. Green companies need money to make the world a better place.

Encourage Innovation

Green companies are some of the most innovative companies today. They have innovated in technologies like solar, geothermal, and other alternative energy sources.

One of the best ways to encourage sustainability is through environmental innovation. You can encourage innovation by investing in companies looking for creative ways to make the world more sustainable.

Most green companies have invented energy storage solutions using technology. Innovation in tech and alternative energy sources will always be the only way to be sustainable.

Create New Job Opportunities

Creating new job opportunities after the pandemic is the way to go! Green companies are offering new job opportunities that were not available before. The best thing about such companies is that they encourage jobs in the local communities.

Solar plants employ people in the community, and we also have installers in the communities. Investing in green energy companies in your community is advisable if you want to create job opportunities.

FAQs

What is a good green investment?

A good green investment is made in companies or projects that promote environmentally sustainable practices and positively impact the planet. These investments can include renewable energy sources such as wind and solar power, as well as eco-friendly technologies like electric cars. Investing in green companies can provide a financial return and contribute to a more sustainable future for the planet.

What are the best green stocks to buy right now?

One important fact to consider when looking for green stocks is the increasing demand for renewable energy sources due to the growing concern over climate change. Another important factor is the potential for government regulations and incentives that could benefit green companies and impact their stock prices.

What are the best environmental stocks to invest in?

Investing in environmental stocks can be a great way to support companies prioritizing sustainability and environmental responsibility while potentially earning a return on investment. Some of the best environmental stocks to invest in include companies focusing on renewable energy, waste reduction, and sustainable agriculture. It is important to research and carefully consider the companies you invest in to ensure they align with your values and financial goals.

What are the best clean energy stocks to buy now?

Investing in clean energy stocks can be smart for investors looking to diversify their portfolios and support sustainable energy solutions. Some of the top-performing clean energy stocks in recent years include Tesla, NextEra Energy, and Enphase Energy. However, it is important to conduct thorough research and consider factors such as financial stability, market trends, and company management before making investment decisions.

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