Eco-investing or green investing is an environmental investment is a form of socially responsible investing (SRI) where investors focus on choosing investments in companies that support or provide environmentally friendly products and/or services. It is a form of socially responsible investing where investments are made in companies that support or provide environmentally friendly products and practices. The world is going green, from recycling and power generation to organic groceries and sustainable fisheries. These companies encourage new technologies that support the transition from carbon dependence to more sustainable alternatives. Everyone, it seems—including climate change scientists, businesses, consumers, and politicians—is interested in easing the burden humanity places on the environment.

Eco-investing is a hot topic in a world concerned about climate change. As industries’ environmental impacts become more apparent, green topics have not only taken center stage in pop culture but the financial world as well. Eco-investing refers to investing activities aligned with a commitment to the promotion of environmentally friendly business practices and the conservation of natural resources. In the 1990s many investors “began to look for those companies that were better than their competitors in terms of managing their environmental impact.” Investing in “green” companies can be riskier than other equity strategies as many companies in this arena are in the development stage, with low revenues and high earnings valuations. While some investors still focus their funds to avoid only “the most egregious polluters,” the emphasis for many investors has switched to changing “the way money is used,” and using “it in a positive, transformative way to get us from where we are now ultimately to a truly sustainable society.” All investors should be wary of companies that simply bill themselves as green for branding purposes without following through with their pledges.

The eco-Investing strategy combines the firm’s fundamental quality approach with investing in global businesses that aim to positively impact the environment through good stewardship and sustainable practices. While this type of investment offers the benefit of helping out a cause you believe in, it’s still important to consider all the risks and rewards associated with investing your money. The Global Climate Prosperity Scoreboard – launched by Ethical Markets Media and The Climate Prosperity Alliance to monitor private investments in green companies – estimated that over $1.248 trillion has been invested in solar, wind, geothermal, ocean/hydro and other green sectors since 2007. These socially responsible investment platforms are easy, automated, transparent, and customizable so you can invest your money in green tech, renewable energy, clean water, and more. This number represents investments from North America, China, India, and Brazil, as well as other developing countries.