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The concept of corporate social responsibility (CSR) is well known in the modern business world, with firms increasingly keen on using sustainable materials and waste disposal practices.
A similar principle can be applied to the contemporary generation of investors, many of whom are now in the market for profitable investments that can also benefit the natural environment. These assets often form part of a diverse and comprehensive portfolio, and one which requires investors to carefully research sustainable options alongside share prices and FX news.
In this article, we’ll look at three modern investments and stock options that can truly benefit the environment while also delivering a viable return:
For beginners, investing in managed and fully-established exchange-traded funds is probably the best way of leveraging sustainable assets. Take the PowerShares Water Resources Portfolio (PHO), for example, which is comprised of 28 small and mid-cap company stocks that deliver clean water to homes and businesses.
This fund ticks many of the boxes associated ethical and sustainable investments, as it is targeted and includes companies that deliver clearly-defined services. It also has long-term growth potential in terms of gains, so it’s ideal for investors who are looking to accumulate profit over a sustained period of time.
So, while the stock’s value has fluctuated and fell flat at around $26 per share back in 2015, it supports local communities across the globe and is likely to deliver a profit over time.
2. The Azzad Ethical Fund (ADJEX)
Based in Virginia in the U.S., the Azzad Ethical Fund is centred on mid-cap growth companies that have a clear focus on impact investing.
It’s certainly a well-regulated and targeted fund, and one that actively avoids any company that has previously failed to comply with the United Nations code of global conduct. Similarly, it is vehemently opposed to brands that deal in gambling, tobacco and alcohol, as well as those that engage in hydraulic fracturing.
The businesses represented in this fund also make direct investments in ethical and sustainable concerns, so your capital have a huge impact across the globe. It can also deliver viable returns, particularly given the shift towards sustainable and ethical practices in some parts of the world.
3. Panera Bread (PNRA)
If you want to invest in specific stocks as part of your trading portfolio, the Panera Bread company represents an excellent choice. Not only does this firm deliver sweet bakery treats and free Wi-Fi to customers, but it also has an extensive history of transparency, product sustainability and leadership in the field of environmentally-friendly operations.
From the use of antibiotic-free chicken and meat products to the elimination of more than 150 artificial ingredients from its menus, the brand has been making incremental changes to the environment for years now. It also continues to seek improvement in terms of its sustainability measures and the use of ingredients, while enjoying consistent price growth in the marketplace.
This makes for a compelling proposition to investors, particularly those who are keen to have a sustained impact on the natural environment.