Green investments refer to investment activities focused on environmentally sound business practices and the conservation of natural resources.
Investors can support green initiatives by buying green mutual funds, green index funds, green exchange-traded funds (ETFs), green bonds, or by holding shares in green companies.
Purely green investments are investments in which most or all of the income comes from green activities.
While profit is not the only motive, there is evidence that green investments can compete with returns from more traditional assets.
Since branding is not enough to confirm commitment to environmental initiatives, investors must conduct thorough research to ensure that the company is up to the desired standards.