From Motif Investing (h/t to John Coleman)
Climate change has become more than a hot topic. With carbon dioxide levels at all-time highs and temperatures on the rise, concerns over global warming1 are increasingly leading to government action and policy changes. President Obama announced a ‘Climate Action Plan’ to cut 3 billion tons of carbon pollution by 2025, with an increased emphasis towards clean and efficient energy.2
This can help put the spotlight on the companies that are focused on the mitigation and adaption to challenges brought by climate change, in turn presenting an expanding investment opportunity. We’ve already seen global investments in climate change-linked reform grow 33% to $66.2 billion, between the first and second quarter of 2014.3 This includes companies involved in reducing carbon emissions, increasing energy efficiency, improving water and waste management capabilities and agricultural productivity. How’s that for win-win: the planet cools off, while this sector looks to heat up.
The Index has 25 stocks, spanning energy, agriculture, waste management and green tech like solar and wind. So far, there’s been only a 0.2% ROI since inception and the S&P 500 is outperforming it.