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9 Best Climate Change Stocks To Invest In 2022

Jimmy Khan

Aug 16, 2022 16:57


Do you want additional details before investing in the climate change economy? The top climate change stocks are listed here and won't let you down.

The reality of climate change is no longer a mystery. And it has severe effects on the environment.

Because of this, everyone is trying to counteract it, including people, businesses, and governments.

Even investors have increased their emphasis on businesses that offer a cleaner future as part of efforts to reverse climate change. For instance, many investors are becoming interested in the several businesses that promote renewable energy.

Green stocks have subsequently gained a lot of popularity among environmentally aware investors.

Even when the world economy is improving, you shouldn't just start investing in any business.

You must choose businesses that guarantee a solid return on your investment.

We've gone out of our way to assist you in choosing the greatest businesses to invest in because of this. Here is a list of the top climate change stocks to help you achieve your financial and environmental development objectives.

It's important to note that some of the top climate change equities for investors come from the solar subsector.

best stocks for climate change 

NextEra Energy

The world's largest producer of solar and wind energy is NextEra Energy. Florida is where its power plants are located. However, it also manages other power resource sectors. NextEra sells to end customers in addition to trading through PPAs.

Since the firm has had consistent growth throughout the years, its track record in shareholder value is unquestionably outstanding.

NextEra increased its yearly dividend rate for more than 25 years to get the Aristocrat Distinction.

The firm forecasts an even better future based on its consistent investment in climate change, which is undoubtedly what investors want. Due to the company's consistent development, its stock is at the top of the world's greatest green stocks list.

Enphase Energy

Power generating, storage, control, and communication activities are all integrated by Enphase, an energy technology business.

Its semiconductor-based microinverter controls this and transforms energy without needing a separate inverter. The client may access sophisticated monitoring and control thanks to this seamlessness.

Unusually, it introduced the all-in-one Enphase Energy System with IQ8TM solar microinverters for its North American market at the end of October 2021.

IQ8 can use just sunshine to build a microgrid during an electric outage.

The business claims to have the most cutting-edge microinverter on the planet. There is undoubtedly some truth to this. Millions of solar microinverters have been supplied by the firm, mostly to markets in Europe, Australia, and North America.

You can practically be assured that its stocks will continue to bring in more money for the investors, given its expertise in the industry, high income, and the ongoing demand for a greener world.


Brookfield Renewable Partners

Leading the way in green energy globally is Brookfield Renewable. It is one of the major hydroelectric power producers, an excellent alternative to fossil fuels.

In addition to hydropower, Brookfield also owns wind farms, enhancing its reputation for wind generation and energy storage. It generates constant revenue by selling a bigger percentage of its electricity under long-term PPAs and the remaining to end consumers.

Its annual returns have increased since it was established, building an excellent track record. Furthermore, the foundation of its constant portfolio development has been its acquisitions and forward-thinking ventures.

Future positive developments like rising energy prices and infrastructure upgrading will probably make annual cash flow increases possible, which will be fantastic for investors.


A US solar startup called First Solar creates cost-effective solar panels. With less silicon and carbon panels, it has upped the ante in the battle against global warming.

It's photovoltaic (PV) panels, which are very thin yet strong, are a true representation of solar technology in the future.

First Solar has significantly improved its standing among climate change energy stocks, taking one of the top spots among its rivals. Additionally, the increasing demand for its cadmium telluride technology has improved its chances.

The business has created some of the biggest PV power plants on the whole globe. Additionally, its extensive expertise gives the investors a better chance of a lucrative future. The company's future looks increasingly greener as solar power overtakes numerous other energy sources in popularity.

Incorporated SolarEdge Technologies 

SolarEdge, established in 2006, is the undisputed industry leader in solar inverters for addressing climate change. It produces solar system conductors and sells them.

Its products include StorEdge Solutions, SolarEdge Inverter, SolarEdge Power Optimizer, and SolarEdge Monitoring Software. The value of the company's stocks has increased over time due to these items, and this trend is expected to continue.

The company's income potential is still definite since more US homes are utilizing SolarEdge inverters daily. Additionally, the company's introduction of "SolarEdge Home" in North America will strengthen its position in the industry.

With that knowledge in the rearview mirror, there should be no question that SolarEdge Technologies has one of the top climate change stocks in the world. Due to its increasing stock trajectory, it is undoubtedly the best alternative for investing in climate change stocks.


Sunrun is an authority on residential solar, and it develops, manufactures, installs, markets, and provides maintenance for household solar energy systems in the US. The business is also a well-known manufacturer of battery storage solutions.

According to a press release from Sunrun, the company's clientele is growing daily, and its net yearly turnover also increases. You may invest in Sunrun as a profitable alternative to other climate change stocks.

Intriguingly, Sunrun's decision to work with SPAN is undoubtedly a significant one that ensures mutual progress. Just a little introduction: SPAN is the firm that created solar panels that are small enough to be used at home and paved the way for the electric vehicle revolution.

The biggest direct installer of residential solar energy systems in the US is Sunrun. The second-largest solar installer, Vivint Energy, was formally acquired in July 2020, further boosting its market dominance.


Clearway Energy

One of the US's largest producers of sustainable energy, Clearway Energy provides investors with some of the top climate change equities. In addition to its wind and solar energy portfolio, it also manages regional power assets and highly lucrative natural gas facilities. Like Brookfield, Clearway trades its energy via PPAs, guaranteeing a steady revenue stream.

It has significantly increased its market reputation and market share since its founding, making it a wonderful option for profitable climate change stocks.

It's important to remember that Clearway's yearly revenue more than quadrupled after ceding control to the private equity firm Global Infrastructure Partners. That relationship also offered a lot of investment options.

The company forecasts continuous growth for its dividend, income, and portfolio. Without sacrificing its financial profile, it plans to boost its yearly dividend in the future.

Canada Solar Inc.

The company Canadian Solar, Inc. is renowned for creating and marketing solar panels. And it manages huge solar projects all around the world.

One of the most prosperous worldwide green energy enterprises, the corporation has multiple subsidiaries on practically every continent.

The sale of this publicly listed company's Japanese factory in Yamaguchi Prefecture netted it around $64 million. The business also said it would profit from rent and plant maintenance costs since it had acquired ownership of the site.

Canadian Solar is undoubtedly a great option if you're seeking the top stocks for climate change.

Ballard Power Systems, Inc.

Another business whose goods strive to achieve net-zero emissions for a better environment is this one. For various industries, including heavy-duty motive, material handling, engineering, and portable power services, it develops and produces PEM (proton exchange membrane) fuel cell devices.

Ballard is one of the firms with significant growth potential, even though its stock has not performed well recently.

Ballard's equities are now outstanding holdings, according to numerous experts.


The Benefits and Drawbacks of Purchasing Climate Change Stocks

Are equities related to climate change a wise investment or a dangerous bet? Is a reliable guarantee of a return on investment available? Is the profit worth the investment?

In my unbiased evaluation of the benefits and drawbacks of this kind of investment, I addressed these and other recurrent queries.


Let's quickly review the benefits of buying sustainable stocks. Will we?

It Is Long-Term

Except the one-time manufacturing and equipment installation, there are no ongoing raw material costs with natural energy. There are no supply issues since it is naturally renewable.

People, governments, and the global economy are becoming more and more drawn to sustainable energy.

It's tidy

Sustainable energy does not produce greenhouse gases and does not harm the environment as quickly as fossil fuels (coal and oil). Environmental degradation of the air, land, and sea has been greatly exacerbated by coal mining and oil drilling. In stark contrast to renewable options, this.

Causes Environmental Impact is minimal.

Alternative energy sources like oil have significant carbon footprints from production to use. On the other hand, energy sources combat climate change are secure and considerably less expensive to produce and store. Manufacturing green energy, supply, and storage components has an environmental impact; however, it cannot be compared to the effects of burning fossil fuels.

It is Long-Term and Less Expensive

Equipment for renewable energy is undoubtedly expensive, and the cost of buying and installing sustainable energy systems will eventually be outweighed by the total amount spent on monthly energy bills.

Furthermore, even though costs are down daily, demand is unquestionably rising. As a result, prices continue to rise.

It's moral

It allows you to enjoy contributing to the growth of the principles you uphold.

Drawbacks of Buying Green Stocks

However, the green economy has certain distinct disadvantages, just like any other investment. We'll examine a few now.

Energy Supply Interruption

On a quiet day, windmills come to a complete stop. On overcast days, solar battery controllers flash and stop working. A power outage would undoubtedly leave homes and businesses in the dark if the storage batteries cannot provide electricity for extended periods.

It Creates Dangerous Waste

The majority of nations still lack comprehensive disposal rules for natural energy equipment. Even merchants and manufacturers do not provide instructions on how to get rid of an old battery or solar panel.

Most of the time, you are unaware of which parts are disposable and which ones may be recycled. Additionally, metals and plastics are a certain cause of pollution as long as they are buried in the earth.


Will Need Too Much Room

Your rooftop solar panel currently inconveniences no one. But consider the enormous solar panels spread over the landscape or the massive offshore wind farms built to provide power for hundreds or thousands of homes, companies, and industries. They often occupy vast parcels of land that might have been used better.

Buying Climate Change Stocks

You now know which climate change equities are doing the best. The benefits and drawbacks of this investment are known to you.

It's time to look at the finest resources for genuine guidance and real investing possibilities.

Your Stock Agent

The majority of brokers work in the conventional bonds and securities industry. They could also have a portfolio related to climate change, however. As an alternative, they can suggest you contact the top company in the sustainable investing area.

Therefore, first, speak with your present conventional investing agent. Dealing with an all-in-one broker will also enable you to save a little money on administrative costs. In addition, you already have a solid rapport and trust with them.

Additionally, search a stock screener's Environment, Social, and Governance section for appropriate investing prospects.


A trustworthy Robo adviser for investments is Betterment. In addition to your chosen initiatives, you have the option to pick from a variety of exchange-traded funds.

However, it continues to choose among your available climate change investment options.

Additionally, it won't let you focus just on climate change for your whole portfolio. The least viable of your present assets will be chosen, and they will be exchanged for substitutes that better address climate change.


Motif analyzes businesses' carbon footprints before presenting you with a themed investment portfolio. But you can also use it to create your portfolio from the beginning by picking which businesses to invest in.

You may gather enough knowledge to make wise investment decisions that are both financially rewarding and ecologically responsible with the help of a hierarchical list of firms' environmental impact data.


EarthFolio is another automated investment adviser for climate change. Regarding your investing and environmental goals, it poses direct questions to you.

TD Ameritrade holds the money while Blue Marble Investments, a registered investment adviser, manages your capital.

Even while their fee is a bit more than that of the majority of market participants, it is still less expensive than the price of directly investing in mutual funds that deal with climate change.

Additional Investment Opportunities Related to Climate Change

In addition to the options mentioned above, you may purchase ETFs that follow international indexes, such as:

S&P Global Clean Energy Index, a collection of international renewable energy equities.

Tesla is a firm that is part of the publicly listed Nasdaq Clean Edge Green Energy Index.

Investment Guidelines for Climate Change Stocks

The planet is becoming green, and the economy will follow suit. Investment possibilities are thus plentiful. But are these chances available to everyone?

Here are some things to think about when you begin this prospective business.

Technology is unpredictable; therefore, only invest money you can afford to lose.

Diversify your holdings while also selling things from different markets.

Be clear about your reasons for investing in the climate change industry, and strike a balance between sustainability and profit goals.

Exercise due diligence by researching real business performance online. For genuine facts, go to websites like Real Impact, FossilFuelFunds, and Morningstar.

Above all, buying the top climate change stocks is the same as defending the environment.

Yes, you will pursue the money while making the necessary efforts to reduce carbon emissions.


How do hedge funds work?

Hedge funds, in a nutshell, are pools of money that are managed and invested in risky projects and assets to generate higher returns than are possible with standard exchange-traded funds (ETFs) and equities like mutual funds and securities.

However, these alternatives are considered riskier than the conventional investing options.

Often known as a portfolio manager, a fund manager, is responsible for managing the funds. On behalf of the investors, he decides on all options and investment strategies. Additionally, hedge funds and earnings finance his salary.

The sources of this money are accredited, investors. These investors are permitted to transact in securities that are not under the Securities and Exchange Commission's tight control (SEC). At least one of the following conditions must be met by an accredited investor:

The individual, spouse, or group must each have a net worth of at least $1 million.

The individual, their spouse, or both of them taken together must have earned more than $200,000 during the previous two years. They need to show that they'll keep making this money this year.

Now that you understand it let's reveal the outstanding publicly listed renewable energy firms that this year have the greatest climate change stocks to offer. This is a list that ranks the businesses according to their merit.