Concerned about Climate Change? Invest in Companies Taking Climate Action
Bold, large-scale efforts are needed to make a significant and measurable impact on climate change. That’s where conscious investing comes in.
Last fall, we saw new reports from both the UN and NOAA urging immediate climate action. The timing was unfortunately appropriate, as the reports made headlines while Hurricane Michael battered Florida and the Camp Fire raged in California. The perils of climate change, today and in the future, are abundantly clear.
Beyond the headlines, the impact in our own backyards has been a rallying call to action from coast to coast. We have a short window remaining to change how we preserve and protect our environment, from how we consume energy to how we handle pollution and waste.
In response, many of us have made lifestyle changes to minimize our carbon footprint, such as taking public transportation instead of driving or ensuring our appliances are energy efficient. While these efforts can make a difference at the household level, the UN and NOAA climate reports show that bold, large-scale efforts are needed to make a significant and measurable impact.
That’s where conscious investing comes in.
One of the most influential ways we can make a difference is to invest in organizations taking real steps toward building sustainable climate solutions. When you invest your dollars with carbon neutral companies, for example, they can directly connect their environmentally friendly practices with a positive bottom line.
Conversely, if you divest your money from companies that pollute, you send the message that toxic practices lose money. Think of it as a simple formula: concerned consumers + conscious investments = corporate responsibility.
Now, compound this message with the pooled effect of many like-minded investors alongside you, and you can see how impact investments can meaningfully communicate your values. To check out a few real-world examples of how companies are answering shareholder demands to combat climate change, look no further than:
- Best Buy: A two-time CDP Climate A-list Company, Best Buy transitioned its Geek Squad cars to hybrid vehicles, made store energy use more efficient, and committed to reducing its carbon output by 60% by 2020.
- Microsoft: The tech behemoth launched AI for Earth, a climate change program, in July 2017, then expanded its efforts in October. To date, Microsoft has allocated $50 million over five years to provide cloud-computing services and related technology to universities, companies, and NGOs conducting sustainability research, with the intent of transforming that research into marketable products and actionable policy.
- Salesforce: A major sponsor of the Climate Action Summit, Salesforce recently announced that its three San Francisco office buildings source 100% renewable energy and use on-site water recycling. Globally, they achieved net-zero greenhouse gas emissions, as well as a carbon-neutral cloud.
Interested in seeing what this could look like with your own investments? Check out the COIN Climate Action Impact Area, which contains companies committed to affordable and clean energy. Because if recent climate news is any indication, it’s more important than ever to invest in companies that are forward-thinking and committed to sustainable practices. By investing with your values, your money becomes a proactive part of the solution.