Businesses around the world often get a bad rap for wasting the environment, and many deserve that reputation. However, there are a plethora of companies that make environmentally friendly products. And while eco-friendly businesses were once on the fringes of traditional investments, they are now at the center of the scene.
Thanks to both a general trend towards renewables and the determination of the Biden administration, clean energy companies are finally gaining ground. Auxiliary businesses, such as those supplying materials to such businesses or operating in related fields such as recycling, also benefit. As with all investments, consult a financial advisor to make sure that the companies you buy match your personal risk profile and your investment goals. Here’s a look at some of the best eco-friendly companies you can invest in right now.
Last updated: September 20, 2021
American Water Works (AWK)
Water is often taken for granted, but the truth is that for much of the earth, access to clean, fresh water is scarce. And while America has been blessed with an abundance of cheap and safe water, many analysts believe that water is a commodity that may become scarce in the future, even in America. Climate change, including increasing drought levels, as well as poor water infrastructure make U.S. cities from Los Angeles to Miami vulnerable to future water shortages. This makes a company like American Water Works a potential option for a long term investment. Founded in 1886, American Water Works is the largest public water and wastewater company in the country.
NextEra Energy (NEE)
Your home might not be powered by wind power yet, but this change can happen sooner than you think. Over the past two decades, wind power production has increased 75-fold, and this is expected to continue as costs continue to fall. Companies like NextEra Energy are poised to take advantage of this, as they are the world’s largest producer of renewable energy from sources like wind and sun. The Biden administration has made it a priority to double the amount of offshore wind power produced by 2030. With these types of tailwinds, NextEra Energy could be a good investment choice.
Premier Solar (FSLR)
First Solar is another company that appears likely to benefit both from renewable energy trends around the world and the political goals of the Biden administration. First Solar, as the name suggests, is a solar energy company. However, First Solar is not just an auxiliary player in space; instead, it is involved in everything from financing and developing solar energy to building and managing solar power plants. This helps to diversify the company’s exposure to various elements of the PV supply chain. For a solar business, First Solar has stable finances and it is perfectly positioned to benefit from the Biden administration’s focus on renewable energy.
Enphase Energy (ENPH)
Enphase Energy is a consumer-focused solar energy company. Although not a household name, the company has installed over 36 million microinverters in over 1.5 million homes. The Enphase Energy system stands out because it uses individual microinverters on each solar panel installed in a residential home, while most businesses tie all of the panels into a single inverter. This means that each panel can operate individually, keeping the system running even if one of the panels fails. With the costs of solar energy falling and government support for clean energy increasing, Enphase Energy could be in the right place at the right time. Many analysts agree, giving the company’s stock a consensus rating of “strong buy.”
Mowi ASA (MHGVY)
Mowi ASA is a name that is generally under the radar in the United States. The company, formerly known as Marine Harvest ASA, is a Norwegian seafood company that primarily focuses on farmed salmon in a number of countries around the world. In fact, the company bills itself as the world’s leading seafood company, producing more Atlantic salmon than any other company. Although it is not involved in the production of clean energy, the company is still classified as environmentally friendly because its main product is sustainable seafood. While maybe not as exciting as some of the emerging energy producers, Mowi ASA is also much less volatile. With the exception of the sale of the coronavirus in 2020, the company’s 10-year stock chart showed a decade solid wins.
Ormat Technologies (ORA)
Geothermal energy is not yet a major source of energy in the United States, but it is a global winner and growing in popularity in the United States Ormat Technologies is one of the world’s leading geothermal energy companies, with operations in Central America, Southeast Asia, Africa and even the United States Still, the company’s global headquarters are based in Reno, Nevada. While solar and wind power seems to be making headlines, geothermal energy is another big part of the clean energy revolution, and US company Ormat Technologies can give US investors a foothold in space.
TPI Composites (TPIC)
TPI Composites is one of the many companies that are not directly related to the production of green energy, but are closely linked to it. TPI Composites is one of the world’s largest manufacturers of wind turbine blades, without which wind power producers cannot survive. Based in Scottsdale, Arizona, the company has three additional domestic production facilities and eight international facilities, in regions as far away as China, Denmark, Mexico and Turkey. For the full year 2020, the company achieved sales of $ 1.67 billion, ad it is set to grow alongside the wind energy industry as a whole.
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Sunrun is another solar energy company that will benefit from the same trends by helping companies like First Solar. Sunrun is currently the largest solar roofing company in the United States, responsible for 20% of all such installations in the country. The company was myKing exciting initiatives, such as the acquisition of competitor Vivint Solar, and government legislation providing grants and subsidies for green energy continue to grow. Sunrun also leverages the value of so-called “virtual power plants,” where it sells excess energy stored in customers’ batteries to local utilities on demand. In August 2021, the company raised its annual growth target to 30% year-on-year. If you believe in the future of solar power, Sunrun may be a good option when diversify your clean energy portfolio.
Services of the Republic (RSG)
Republic Services might not be the first company that comes to mind when you think of a “green” business. However, the services provided by Republic are an integral part of the clean energy pantheon. Republic Services is a waste management company, and recycling is a big part of the company’s mission. In fact, the company calls its employees “stewards of the environment,” with a force of 36,000 focused on increasing recycling and producing renewable energy. Recycling is likely to play a big role in the growing clean energy movement in the future, and Republic Services is poised to ride that wave higher.
Avangrid is a sustainable energy company that is part of the Iberdrola group. However, it is its own separate company and trades on the New York Stock Exchange under the symbol AGR. Although the company operates electricity and natural gas utilities, it also has a renewable energy division primarily focused on wind power, with a presence in the US states. With the recent approval of its acquisition of PNM Resources, Avangrid will become the third largest renewable energy company in the United States, with operations now in 24 states.. In September 2021, the company closed a $ 2.3 billion financing for Vineyard Wind, an 800 megawatt offshore wind project it is developing in collaboration with Copenhagen Infrastructure Partners. It is one of the largest investments in a renewable energy project in the history of the United States.
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