3 green money makers you may have missed out investing in
In the last few years, the world has slowly become aware of the impact human activity has had on the environment. For too long, companies kept on manufacturing their produces without any consideration paid to the impact their products had on the environment. Thankfully, this trend is shifting and more and more corporations are realising that a business model that is gentler on the environment will not only reduce their carbon footprint but also endear their company to a new generation of consumers who are vigilant about the sustainability and eco-friendliness of an enterprise.
Here are some of the most environmentally friendly businesses who have shown that a healthy and positive attitude to our surroundings can be both morally acceptable and extremely profitable. It may be too late to invest in these companies at this stage, but there are nascent enterprises which hold a similar view on the environment which could yet prove to be profitable. An advisory service such as CMC Markets can be a help in steering you towards the next green business giant.
The Swedish furniture behemoth has spread from their Scandinavian home to all corners of Europe and beyond. As of September 2016, IKEA operates 389 stores in 48 countries, and you might think that with such a huge business pollution is inevitable. Not so with IKEA. They source almost 50% of their wood from sustainable forests and 100% of their cotton from farms adhering to the Better Cotton standards which require reductions in the use of water, chemical fertilisers and pesticides. Not only this, but they also have a real focus on green energy when it comes to powering their stores. They already have more than 700,000 solar panels powering their stores and in 2012 announced their aim to be 100% renewable-powered by the year 2020. They have since gone a step further and now hope to become an energy exporter by that year. Clearly, IKEA is a company that values the environment, and eco-friendliness is ingrained in their business model.
Usually, it would be business suicide to tell potential customers that they don’t need to buy things but this is exactly what Patagonia did in an ad campaign in the New York Times in 2011. Their reasoning was that we live in a wasteful society that constantly leeches resources from the planet and buying things that you don’t need is one of the primary ills of our throwaway culture.
Founded in 1973 by environmentalist Yvon Chouinard, Patagonia has grown to be one of the biggest producers of outdoor clothing and accessories, despite their unusual marketing tactics. The founder’s love of nature and the outdoors has meant that Patagonia actively tries to maintain an earth-friendly business model by doing such things as donating a portion of its revenue to environmental causes and using recycled and organic material in their clothing. They also insist on using Fair Trade certified material and are one of the founders of the Sustainable Apparel Coalition, a collective of companies whose aim is to reduce their environmental footprint.
A name that is certainly not as well-known as IKEA or Patagonia, Seventh Generation is nonetheless another shining example of how businesses can maintain equilibrium with the planet and, in some cases, even benefit nature.
Founded in 1988, this company has a wide range of products that can be found in any home or business. Taking their name from a Native American tribal law formulated by the Iroquois which states that “in our every deliberation we must consider the impact of our decisions on the next seven generations”, Seventh Generation go to extreme lengths to ensure that their company has a positive impact on our world. They produce biodegradable, vegetable-based cleaning products as well as environmentally friendly laundry detergent. A quarter of their fleet of the vehicle is comprised of low emission cars and a quarter of their energy needs is met by renewable sources. The company banks more than $150 million annually while managing to maintain a healthy relationship with the environment.
Green is big business, and eco-friendly companies are sprouting up all the time. So, if you are thinking of investing in the future, spare a thought for the future of the planet and lean towards companies like these.