Why Protecting the Planet Also Means Protecting the Market
Despite experiencing the same crisis points as other markets, sustainable and green energy stocks have displayed promising signs of recovery throughout even the most unpredictable times over the last three years. As society edges towards a more universal understanding of why investment in sustainable infrastructure matters, opportunities to capitalize on the innovation of green technology are once again diversifying.
What started out as a bubble that many believed would soon burst has now developed into one of the fastest-growing industries for innovation, research, and new technologies. While some nonrenewable energy and fossil-fuel shares still refuse to go down without a fight, there has been an unmistakable shift in the global mindset towards more socially responsible investing.
Investors are now stepping away from the major stock exchanges and diversifying their portfolios with the steady promise of green energy. Even investors who have never considered investing their money this way before are now seeing an opportunity to benefit financially, while also contributing to a better future for the entire planet.
Of course, there will always be the investors who remain distracted by oil, gas and coal companies who continue to vie for their attention — but isn’t time running out for these mega-corporations to squeeze everything they can out of a market that is actively seeking alternatives?
We’re here to help you evaluate green investment opportunities and determine which ones are the most likely to offer the best rewards (both financial and environmental) now and in the future.
Why are “green investing” opportunities worth considering?
As everything from consumer attitudes to government policies shift towards a more eco-friendly future, the influence on the stock market has been undeniable. With global awareness of how the climate crisis is being accelerated, prominent market players are now scrambling to offer sustainable workarounds for the problems they’re visibly contributing to. As those who resorted to greenwashing have already learned, empty promises are sure to be uncovered eventually.
Society is now educated to a point where sustainability isn’t just a trend; it’s a way of life — and for companies genuinely trying to make a difference to the current environmental crisis, the ability to grow to market level will depend on the gut instinct of savvy investors who know when to get in early.
Sustainable investing — a wealth of opportunities
If you’re an investor looking to strategically expand your portfolio while also doing something good for the planet, there’s a multitude of big and small-time opportunities available.
As the market now pays attention to the social responsibility of the companies they invest in, large conglomerates will be the first to spin tales of investments in wind farms and renewable energy to boost their engagement with ‘green PR’. However, we believe that it’s also worth seeking out some of the smaller companies on the ground who might be making more of a difference than you think.
For investors who want to free their conscience from previous investments in fuel-heavy industries, targeting areas in need of immediate funding is an excellent place to start. For example, heavy investment in water infrastructure is currently required to ensure that the earth doesn’t run out of drinkable freshwater. With countries already experiencing severe water scarcity, there’s an immediate opportunity for your money to save lives.
If the climate crisis is so severe, why are so many renewable energy and water investment opportunities so undervalued?
What was previously viewed as an almost corporate trend has now become its own market, but unfortunately, fossil-fuel shares are somehow still managing to dominate the major stock exchanges. This makes it difficult for up-and-coming clean energy and green technology companies to edge their way to the top of the table, despite trends continuing to move in their favor. With so many new faces trying to take advantage of early positioning in the green sector, many investors are failing to see the true potential of green investing.
Additionally, renewable energy producers (who are currently putting up a good fight amongst the stock giants) tend to have a much higher level of debt than fossil-fuel generators — unsurprisingly, putting investors off. Due to financial policy still favoring the stability that fossil fuels offer, it’s easy to believe that fossil fuel generators will continue to flourish. In reality, the signs point towards an upcoming change that has the potential to shake up the entire stock market as we now know it.
Even though SRI and renewable energy stocks have shown significant growth in recent years despite their challenges, they’re also still a relatively new concept. Even when it appears that everyone wants a piece of the eco-friendly action, there are still investors who believe the hype will fade.
Luckily for you, the best investments are still the ones that are made before these types of investors come to realize how wrong they are — so now is the perfect time to act.
To invest in already-established green companies or take a risk on an up-and-coming opportunity?
For the companies that have been around for a while, the importance of environmental, social, and governance (ESG) criteria means that investors can now do their research to find out which companies are actively delivering on their environmental promises. Even for newer companies that operate under umbrella brands, a history of failing to deliver on environmental commitments can prove to be a PR nightmare for even the most secure companies.
For a large and already-established green stock consistently showing signs of growth, the ship for a dramatic ROI has likely already sailed. For example, Vestas Wind Systems is a stock that is already considered to be significantly overvalued, with a poor outlook for future ROI. In this case, it might be better to look towards the smaller start-ups offering new technology and innovation at a level that’s not only exciting for new investors — it’s also likely to provide the best chance of significant profit.
As many green technology companies are young and rarely offer concrete ways to mitigate the risk of investment, investors can be reluctant to get involved — but there are ways to help secure your investment.
How to know the difference between a good green investment and a bad one
To ease your concerns about investing in unfamiliar companies, it’s important to look at who is already involved and examine any endorsements that bigger players in the industry have made. Not every company will tell their full story to investors, but who they are associated with (or who they attempt to associate with!) will often tell the story for them. Is the company you’re looking at actually putting in the work to become recognized by valuable environmental organizations, or are they just trying to make it seem that way?
A good way to know if a green company cares about the cause is to consider whether its short-term or long-term goals are what matter most. If you’re unsure whether a company is focusing on short-term or long-term goals, look at the level of attention being given to their expansion and the concentration of their marketing materials. Are they cramming everything into one growth phase or are they attempting to sustain themselves long-term?
Even though in an ideal world, all green technology companies would like to achieve their desired results as soon as possible — there’s a clear difference between green technology companies who are focused on making money as quickly as possible so that they can jump ship to another industry, and the ones who are actually committed to providing solutions long-term.
Where there’s good technology, there’s a patent
Following on from the previous point, with so many new green start-ups, it can be challenging to differentiate between low-risk and high-risk investments. Something worth noting in the green energy field is that new and innovative technology is emerging faster than ever. If you’re the type of investor who gets excited by new technology, the green sector is definitely where you’ll find it!
But which green technology is worth your investment? The truth is, it’s difficult to know. Something that looks and sounds great on paper might never come to fruition and your investment will have only served to prolong the inevitable. However, there are signs to look out for that a new type of green technology is likely to be worthwhile.
Firstly, if the company you’re looking into offers a new technology that looks and sounds impressive — is their technology patented? So often, new technology is everything the company says it is, but it can get swiped by a competitor who was faster at raising funds or who had friends in higher places. A patent for new technology will provide at least some security for your investment — and if you genuinely believe in the technology, at least you know that your money has a fair chance at helping it be developed.
Secondly, if a patent has been secured, what other measures is the company taking to ensure that their concept comes to the market with good positioning? As an investor, these are the areas you can enquire about and any green company with true intentions will be more than happy to keep potential investors up to speed through PR materials and investor announcements.
What Oxydus can offer to investors
Oxydus has focused on developing innovative technology that aims to significantly aid the climate crisis and make a real difference to peoples’ lives. Oxydus’s latest technology is the patented Teva7 system, a machine that solves all of the previous issues associated with Atmospheric Water Generator (AWG) machines — while also being cost-effective and faster than its competitors.
AWG machines are known for extracting moisture from the earth’s atmosphere and attempting to turn it into drinkable water. However, as the earth is so urgently in need of a new source of freshwater, the current technology is sadly not viable. This is why Oxydus knew that the only solution was to not just advance the current AWG technology, but to completely reinvent it.
Utilizing advanced AI software, Oxydus has designed the only remotely managed atmospheric water production system, with all functions controllable from anywhere in the world. The Teva7 machine also contains new filtration systems that ensure all harmful contaminants are automatically removed from the water produced by the machine. Instantly drinkable water that can be positioned anywhere.
Even small investments can make a big difference to the right green technology company, so find out how your investment can help Oxydus save lives now via our Wefunder campaign: