Why Investors Should Pay Attention to Portfolio 21’s Top 10 Green Companies
Not every investor wants to be a green investor, but every investor – institutional and individual alike – should be prepared to take advantage of a company’s greenness.
According to a recent study sponsored by Environmental Leader, an online publisher, consumers are willing to spend more on products and services that they consider to be environmentally-friendly. That’s why 82% of respondents said they plan to use more green messaging in their marketing.
But how can an investor tell a genuinely green firm from the phony ones that practice “greenwashing?” One place to look is Portfolio 21.
As we note on EnergyTechStocks.com, Portfolio 21 is a well-established mutual fund that looks for environmentally-friendly business practices by companies in a variety of industries. The fund’s shares are up over 37% from a year ago and the other day it announced its list of “Top 10 Green Companies.” While greenness certainly isn’t the only factor that goes into a company’s share price, the following 10 firms have products and services that figure to have a little extra going for them.
Autodesk (Symbol ADSK) made the list because, according to Portfolio 21, the company makes software that supports sustainable building practices. East Japan Railway (Symbol EJPRY) made the list because rail transportation is inherently more energy efficient than trucking, and because the company keeps reducing its own energy consumption.
Henkel (Symbol HENKY) was recognized for its wide range of bio-based detergents and adhesives. Itron (Symbol ITRI), meanwhile, was cited because its core business is metering and software that serve to reduce energy consumption.
Brazil’s Natura Cosmeticos (Symbol NUACF) was recognized for its sustainable use of natural resources. Similarly, Potlatch (Symbol PCH) was recognized for its sustainable forestry practices.
Red Electrica (Symbol RDEIY), Spain’s leading power transmission company, was cited for its role in facilitating Spain’s rapidly-growing alternative power generation business. Japanese consumer products giant Sharp (Symbol SHCAY) made the list for manufacturing products that incorporate energy and resource efficiency and recyclability.
Belgium’s Umicore (Symbol UMI) was recognized for being the world’s leading recycler of precious metals, while Denmark’s Vestas (Symbol VWDRY) was recognized not just for being a wind power manufacturer but for its own sustainable manufacturing practices.
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Bill Paul is Managing Editor of EnergyTechStocks.com.