Sustainable finance is all about the investment opportunities directed towards the conservation of the environment. It also relates to investments in clean energy and water projects, production of renewable energy or any business activities that fulfill environmental concerns. The fact that sustainable investment trends are catching up despite the financial crisis, the concept of sustainable finance has become more attractive for investors.

Green investments can be extremely effective in providing stable returns in the long run. Anyone interested in combining ethics with investment can opt for green companies that carry their business activities with environmental issues as the main agenda. According to experts, sustainable investment is a great way to build a better environment. Business organizations need to focus on the protection of environment and eco-friendly living in order to achieve the goal of sustainable development.

In the last few years, demand for green stocks has increased to a great extent. Investors across the globe are looking for companies that are integrating the concept of ‘sustainability’ in their daily business activities. Many such companies are offering diverse investment opportunities to lure investors from all sectors. This certainly doesn’t mean that companies other than green companies are bad. It about choosing a better company that meets your criteria of socially responsible performance. The key to success lies in choosing a responsible company that will turn more sustainable in the coming years and reap higher profits.

So what all is covered under green investment? Traditionally, green investment includes exchange traded funds, mutual funds and stocks. Companies offering green stocks are partially or completely involved in the improvement of environment. From companies developing alternative energy technology to startups involved in the production of solar panels or bio-fuel, different types of businesses offer green investment stocks and funds. However, there can be variations as far as the understanding of “green investment” goes for different investors. Investing in an oil company may be sustainable for some while others may not consider the stocks as green investment because fossil fuel adds to global warming. Therefore it is very important to conduct a thorough research before investing your hard earned money in any green company stock.

Author's Bio: 

Kevin Long is the founder of Global Deaf Connection and the co-founder of Justmeans, a social utility site that helps companies to attract and ignite advocates of better business and good work related to sustainable finance, sustainable development, ethical consumption. Kevin has done significant business development work for both for-profit and non-profit organizations that support good work.