Environmentalist or not, as an investor, you care so much about your surroundings. Hence, you invest in companies that can reduce their negative impact on the environment. When it comes to choosing the firms to invest in, consider the following aspects of its operations: energy, waste, and pollution, treatment of animals, and natural resource conservation.

All companies use energy to run their businesses. Because of that, they generate waste products. Although this reality is most often linked to manufacturers, the smallest operations also use electricity to power their computer systems and lighting.

Most ethical investors venture on firms that do not give off much pollution. Some invest on those who purposefully cut their environmental effect. Others search the worst offenders and attempt to change their ways.

How can companies reduce usage of energy and emission of waste and pollution?

Energy. Corporations can operate out of green buildings. Its features include windows letting in sufficient natural light to cut the usage of ceiling lights and the like, window blinds minimizing heat penetration to reduce the use of air conditioners, and installing solar panels. When delivering goods, firms can reduce the use of gasoline through minimal packaging. Lighter loads require less energy. They may ask their employees to telecommute or commute at off-peak periods to minimize the usage of company vehicles.

Waste. Employ methods like decreasing packaging materials, recycling waste, or implementing corporate recycling programs. They can also create products that will last for years, and have serviceable and replaceable components.

Pollution. Work with waste management entities to dispose their garbage properly. Firms can invest in processes to clean the wastewater before it reenters the natural environment. They can also use nontoxic production processes to reduce the amount of toxic waste they have to process.

All of these alternatives might not be able to reduce the firm’s expenses, but it make a difference on the environment.

Certain investors or vegans do not think it is ethical to use any animal products. Some of them consider corporations engaged in meat products as unethical. Although others consume animal products, they believe it should be done in a humane, sustainable manner. Most investors support any entity that highly denounces animal testing, as well as food companies that create nutritious and safe products to the market. Also, they prefer corporations involved in fair trade practices with international suppliers.

Ethical investors are also concerned with preserving natural resources. Having said that, they invest in companies that can conserve resources in any way they can, including purchasing products made from recycled materials, minimizing paper communications, and maximizing electronic correspondences. Some companies extract natural resources, but they can do it in a responsible way.