The Growth of Green Business and Investment
By Michael Schweibinz
Over the past two decades, First Affirmative has witnessed the sustainable investing space transform from a niche market into an increasingly popular and profitable market segment. Today, businesses large and small are racing to go green and, as they implement more enlightened practices, their business only continue to flourish.
Green America recently highlighted the impressive growth of small green businesses. We believe the growth of natural and organic food, green building, renewable energy, and responsible investing is being fueled by the same progressive, health-living, forward-looking consumer base.
Growth rates of “green” market segments are outperforming conventional ones in every data point, according to the groundbreaking report on small businesses, The Big Green Opportunity.
Over the years, many small businesses and investors have often hesitated about going green because of perceived lack of profitability. However, business owners reported that their “green offerings tend to be profitable, often more profitable than their less environmentally beneficial offerings.”
These findings are not only promising for small businesses, but for investors as well. From an investment standpoint, two statistics stand out:
- 75% of survey respondents plan to expand their portfolios of green product and service offerings.
- 62% of all respondents offer green products or services because it’s a “competitive requirement” in their industry
Bottom line: Green businesses are not fads. Businesses with a higher purpose than simply making money are here to stay—and growing fast!
First Affirmative understands that the ways we save, spend, and invest can dramatically influence both the fabric and consciousness of society. We believe that in addition to the benefits of ownership, investors bear responsibility for the impact our money has in the world. Are you making conscious decisions about the impact of your consumer purchase and investment decisions?
Mention of specific companies or securities should not be considered a recommendation to buy or sell that security. Past performance is no guarantee of future results.
Posted: January 27, 2014