Sustainability is a trend which is here to stay, and even the most conservative long term investors that have built their portfolios on oil stocks and have done remarkably well over the years, recognizing the importance of being ahead of this long term economic shift.
Companies that rely heavily of fossil fuels for growth are likely to be constrained in the long run by governments and individuals interested in reducing the carbon footprint of the world, a long-term threat which confronts the viability of an investment strategy based solely on fossil fuel companies.
To go completely green, there are a number of exchange traded funds (ETFs) offering exposure to companies with no fossil fuel-related operations. One of these ETFs I like the most is the SPDR MSCI EAFE Fossil Fuel Free ETF (EFAX) which tracks a range of non-U.S. companies in sectors not related to the fossil fuel industry.
The companies that are held in this ETF do not have oil, coal, or natural gas reserves and are thus not oil-producers, though many companies within the fund are utilizers of fossil fuel for energy. While the environmental impact of the companies in this ETF is non-zero, the vast majority of carbon footprint caused by "big emitters" is removed from consideration for investors who want to invest sustainably.
New ETFs in this space are always popping up, so if you're an eco-investor, keep your eyes open for new and exciting alternatives in this space.
Invest wisely, my friends.
