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Investing In Sustainable Stocks: How To Assess Your Current Portfolio

Last updated: June 28, 2022

Sustainability inside the financial markets is a relatively new concept. For many years, most of the focus on investing was to either yield a return, or to fund future companies in order to achieve certain purposes, usually with payouts. Investing remains the number one best way to achieve wealth, even for the average person. Putting money away for the future (over the long term of >10 years) has always yielded more than what you started with, provided consistency and behavior were kept in check. In the current time, priorities have shifted - yet a more sustainable path toward wealth has presented itself.

In this article, we will talk about the raging phenomenon that is sustainable investing. We will define sustainable investing so that you can review your current portfolio and make changes accordingly if you wish. Finally, we'll talk about some of the best plant-based and vegan-friendly stocks with the highest market capitalization.

What is Sustainable Investing?

Sustainable investing is a relatively new term, often called ESG (environmental social, and governance).

Being sustainable comes down to this: If we were to act the way we do now for the foreseeable future, would our planet, and future generations, be doomed?

The answer that much research and governments have posed is usually a resounding yes. It is hard to align the interests of those who want to maximize profits and those who wish to have a longer-term caretaking approach to our worldview.

This is where sustainable investing comes in. Companies (and funds) have created products and vehicles to invest in that challenge the old models - that sustainability cannot be profitable. While it is important to teach sustainability to the general public, real change comes when everyone is motivated to do their part. For example, it is difficult to tell an oil baron to cut their profits by 50% in order to stop damaging the environment - as it may cause many layoffs within the company. If that same oil baron was approached by investors to turn the company into an alternative source of energy, such as solar, wind, or nuclear - which made more (or the same) profits as before AND could preserve the environment, they would be all ears.

Plant-Based Meat Companies To Invest In

Best Plant-Based Meat Companies Stock: Beyond Meat (BYND on NASDAQ). Market cap of ~2 billion.  There are few people that haven't heard of beyond meat, whether it is in the food they eat or in the news. Beyond meat has recently gone public a few years ago, after causing headwinds in the media regarding its sustainable practices. This prompted the company to go public and listed on the NASDAQ exchange, garnering interest from many investors that agreed with the message. Beyond meat makes plant-based meat alternatives, and is arguably the largest market capitalization within its space, making it the leader in this category. Beyond meat wants to help humans eat healthily, improve climate change, reduce our destruction of natural resources, and wants to end animal cruelty.

Plant-Based Milk Stocks

Best Plant-Based Milk Stock: Oatly (OTLY on NASDAQ). Market cap of 1.7 billion. Oatly is a widely known brand within grocery stores, mostly known for its alternative to milk. This company claims to have made the first official and original "oat drink", even offering a history of said drink on their website (which is hard to ignore!) For being a company that mainly offers one product, it is hard to believe that they have such a large market cap. Oatly is obsessed with changing the face of milk, trying to end animal cruelty towards the traditional dairy sources such as cows and goats. Their oat milk is fortified with many of the necessary vitamins and minerals that we need and also tastes great.

Plant Based Companies

Best Plant-Based Stock: Tattooed Chef (TTCF on NASDAQ). Market cap of ~600 million. First came rideshare companies like Uber and Lyft. Then came the rise of contact food delivery from the same companies or others, such as DoorDash and SkipTheDishes. Then came grocery delivery. Now, we are in the era of meal delivery on a regular basis, making the act of cooking a delicious home-cooked meal simple, even for those that are on the run 15 hours of the day and only have 90 seconds to heat their food. Although many companies are doing this for a share of the proverbial market pie, Tattooed chef is one of the largest, even as a publicly-traded company, in this category. The tattooed chef is vegan-friendly, all their foods are delivered and ready to eat at your doorstep and is 100% plant-based.

FAQs

Why is sustainable investing important?

Having a profit-oriented view of the world clearly isn't working. With this being said, it is hard to motivate everyone to invest in anything, otherwise, that wouldn't make them the most money. It is hard to deal with both poverty and sustainability at the same time. Sustainable investing is extremely important because of this, as it mixes environmental, social, and economic benefits for its investors that are focused both on profitability and forward-thinking.

Can sustainable investing save the world?

Sustainable investing mixes the interests of those who want to be profitable with those whose mission is to change the way we use the resources available to us. While this may not have any impact now, or even in the near future, over the long term, this union can save many natural resources and the lives of people around the world.

How to get into sustainable investing?

Not everyone has the funds to begin investing in companies with a clear mission plan to "save the world" and you shouldn't feel bad about that. To start, invest in companies that do not waste and have a mission to preserve and treat their resources and capital effectively. It goes beyond the financial markets, always choose cruelty-free foods at the store whenever possible, and supports those companies with a clear vision.


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