The BP catastrophe in the Gulf of Mexico is the most recent in a rapidly expanding list of global wake-up calls. What´s more, the impacts of global warming and climate change are dotting the earth with natural disasters with increasing frequency and intensity.
If there ever was a perfect storm brewing, this is it. Extreme weather patterns are no longer the exception but the rule as recent events have shown with one or more fatal reports of tornados, hurricanes, mudslides, hail storms, wildfires, drought, floods or heat waves.
The encouraging news is that we have a rising tide of imperatives – environmental, economic, and regulatory – that are triggering green solutions activity by all segments of our society. Tackling global warming is no longer an option; it is a necessity. As a result, there are enormous mitigation and adaptation challenges that are inspiring innovative green investment solutions and revitalizing those already established.
Tantalizing big new markets are offering long-term, double-digit growth rates. These new markets inevitably attract entrepreneurs with fresh ideas, followed by capital and larger companies seeking meaningful growth.
The universe of high-growth, well-managed and investable companies offering “bona-fide” green products and services is growing rapidly. Sustainable business models are expanding, especially those addressing climate change and resource scarcity. Green companies are no longer just young start-ups with entrepreneurs struggling to make payroll and spending more time raising money than building their businesses. In fact, in just the last few years, there has been and continues to be a dramatic expansion of green product and service offerings.
For example, during the first issue of the Green Investor guide (early 2005) there were very few green companies with sustainable business models. Today, our research network indicates that the investable global universe of green companies exceeds 1,000, with more on the way.
The challenge of green investing is twofold: To increase personal wealth while avoiding harm to people and the environment.
The prospective investment returns in the green space are compelling and offer double-digit growth potential in sizeable but nonetheless, rapidly expanding markets. Together, socially responsible and Green investing should aim to help make the planet a better place. As we collectively strive towards this goal, one thing is undeniable: Enormous profits are at stake as the World goes Green.
Perhaps, the time has come where we are now witnessing the next social and technological revolution that will change the course of history. The timing could not be more perfect for new investors.