How sustainable investments benefit the planet

If we are to continue to power the planet, we must get serious about alternative energy sources. Whether it’s installing solar panels on single-family homes or building wind farms to generate clean energy, the companies leading the way are likely to benefit from investment. Especially if we want renewable energy to be affordable enough that it automatically becomes the best option.

That’s where sustainable investing comes in. Sustainable investment not only supports renewable energy, but also new jobs – which in turn can create the kind of economic growth that drives prices down and markets up.

How can you get started with sustainable investing – and how can you choose the type of investment opportunities that are likely to benefit alternative energy? To answer these questions, we contacted sustainability expert Josh Prigge.

Prigge is the founder and CEO of Sustridge, a sustainability consultancy. He works with organizations of all sizes – from large corporations to small, private research schools – to make the kind of lasting changes that can lead to long-term sustainability. With twelve years of experience in sustainable management, Prigge understands how to help organizations make practical, actionable choices that are good for both the environment and the bottom line.

How do you define sustainable investments?

“Sustainable investing is forward-thinking that includes environmental, social and governance (ESG) factors in investment decisions,” explained Prigge. “Its goal is to generate long-term financial returns along with creating positive societal and environmental impacts.”

Like all investments, sustainable investing comes with some risk – which means that before you buy any stocks or index funds, you should ask yourself whether you can afford to lose some of your investment or keep your investments in a long-term bear market. That said, many companies that make good sustainable investments also actively work to reduce risk for their investors.

“Sustainable Investments works to identify companies that actively promote sustainability and responsible business practices,” says Prigge, “which often leads to better long-term performance and risk management.”

How do sustainable investments differ from ESG investments?

“While sustainable investing and ESG investing are often used interchangeably, they differ in their primary focus,” Prigge told us. “ESG investing serves as an important basis for assessing companies based on their environmental, social and governance performance. Sustainable investing takes a broader and more proactive approach.”

If you’re interested in supporting racial justice or equitable leadership opportunities, for example, ESG investing will likely connect you with companies that have met certain metrics that indicate progress in those key values. Many of these companies have also been selected because of their high environmental requirements and may be actively working towards sustainability goals.

Sustainable investments, on the other hand, focus entirely on long-term environmental factors. “Sustainable investing goes beyond ESG investing,” says Prigge, “by actively seeking companies with innovative solutions to global challenges such as climate change, resource scarcity and social inequality.”

How do you define alternative energy sources?

“Alternative energy sources are those that differ from traditional fossil fuels, such as coal, oil and natural gas,” explained Prigge. “They are renewable, cleaner and have a lower environmental impact, which contributes to a more sustainable future.”

Alternative energy sources not only benefit the planet, but the development of these alternative sources also benefits the economy – especially for people seeking jobs in green energy fields. – Among the most common alternative energy sources are sun, wind, hydropower, biomass and geothermal power, says Prigge. “These alternative energy sources reduce greenhouse gas emissions, increase energy security and promote economic development by creating jobs.”

What are some of the most common alternative energy sources and what are their benefits?

“Solar power is becoming increasingly cost-competitive due to advances in solar cell technology and economies of scale,” Prigge told us. “In addition, wind energy has become one of the fastest growing renewable energy sources, with modern wind turbines capable of generating electricity even at low wind speeds.”

The benefits of alternative energy sources, of course, go far beyond cost competition – and the savvy investor will understand that their contribution can provide benefits far beyond annual returns. “By embracing alternative energy sources, we can diversify our energy mix, reduce dependence on fossil fuels and pave the way for a more sustainable and resilient future.”

How do sustainable investments directly benefit alternative energy sources?

– Sustainable investments play a crucial role in supporting alternative energy sources, says Prigge. “As an established energy consultant and owner of a sustainability consulting firm, I can confirm that investing in companies focused on renewable energy solutions helps drive innovation and finance new projects.”

These innovative projects help produce both energy and economic growth – which can prove to benefit both the environment and the investor in the long term. “These investments not only have the potential for strong financial returns,” explains Prigge, “but also contribute to a more sustainable future.”

How do sustainable investments indirectly benefit alternative energy sources?

“Sustainable investments both directly and indirectly support the development and adoption of alternative energy sources,” says Prigge, “because you support companies and initiatives that contribute to creating a more environmentally responsible and sustainable ecosystem.

By investing in a company that promotes permaculture, for example, you are voting for companies that work for renewal – which also favors renewable energy. “Permaculture encourages sustainable land use and resource management,” explains Prigge, “which in turn fosters an environment conducive to the growth of renewable energy projects.”

This is one reason to consider sustainable investment index funds, which allow you to spread your investment dollars across a variety of high-performing companies working for long-term environmental progress.

“Sustainable investment index funds are an excellent option for those who want to indirectly support alternative energy,” Prigge told us. “These funds invest in a diversified portfolio of companies committed to ESG criteria, including those involved in renewable energy. By choosing sustainable investment index funds, investors can contribute to the broader sustainability movement while benefiting from long-term growth of responsible companies.”