by Deborah Reid –
Earth Day reminds us of the responsibility we all have to be thoughtful stewards of the air we breathe, the water we drink, and the land that we occupy.
After many decades of misuse and abuse, we are now seeing countries holding businesses and citizens responsible and accountable for actions that bring harm to the environment. Last year Canada joined 131 countries to sign the Paris Climate Change Agreement in an effort to reduce greenhouse gas emissions.
As awareness to protect our environment continues to grow, businesses around the world are taking steps to become better corporate citizens. Here at home, utility companies are using solar and wind as alternative energy sources. We also have responsible resource companies that have added wind power to their operations, are switching to lower-carbon fuels such as natural gas, increasing usage of recycled waste water and planting trees, shrubs and aquatic plants on their sites. A French oil company purchased a solar-panel manufacturer and last year added a battery company in order to use the battery packs for energy storage. As well, a Norwegian oil giant has invested in several offshore wind farms and is currently testing a floating wind turbine. Both energy companies are committed to branching out beyond fossil fuels and have installed electric-car charging stations at some fuel stations in the U.K. and Europe.
Canadian investors have many opportunities to invest in environmentally responsible companies. Some corporate changes have been monumental, such as the ones we have seen in our resource and utility sectors, whereas other changes may be less noticeable. For example, a Swedish furniture-maker sources close to 50% of its wood from sustainable foresters; a global manufacturing company ensures that its nonhazardous waste stays out of landfills; a large corporation relocates its company so the majority of its employees can walk to work; and even less obvious is the use of technology for creation and storage of information, thereby decreasing the use of paper, or using video-conferencing to reduce travel.
As individuals we can take responsibility for our own actions. Whether it is driving an electric car, cycling to work, recycling, composting, using less electricity, or limiting water consumption, we can all do our part. As investors, we can reward those companies who are making a commitment to keep our planet healthy by simply investing in their companies. Whether you invest in an ETF comprised of solar energy companies, a specialty mutual fund, or buy shares in eco-friendly businesses, you have the ability to select investments that reflect your beliefs and values.
Deborah Reid is a Financial Advisor with Raymond James Ltd. Information provided is not a solicitation and although obtained from sources considered reliable, is not guaranteed. The view and opinions contained in the article are those of Deborah Reid, not Raymond James Ltd. Raymond James Ltd. member of Canadian Investor Protection Fund.
