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Kevin Walenta, who manages Fidelity's portfolio of selective and alternative energy environments, said he follows energy-saving companies in a more traditional way. These companies, such as Ingersoll Rand, Lennox International, Honeywell and Johnson Controls, install efficient lighting or heating and cooling systems in commercial buildings. This results in significantly lower energy consumption, higher ecological indices for a building and a yield in just two or three years.
Mr Walenta said he examined both aspects of investment, environmental impact and total return.
"I'm looking for companies that are driving environmental change but have a sustainable business model, good returns, positive cash flow and strong balance sheets," he said. "In the context of environmental change, I want them to generate profits over long periods of time."
Public utilities are another area for investors, he said. In areas like Southern California and Arizona, the cost of solar energy makes it competitive with traditional energy. The same thing, he says, is valid for wind energy in Midwestern areas such as Oklahoma.
"Ten years ago, they were not the best investments because you had a big premium for a wind turbine or solar panel compared to other options like natural gas and coal," Walenta said. "Today, this difference is non-existent."
These strategies seek to refute the common belief that an environmentally focused investment reduces returns. There are examples of lower investments made to achieve social good, but some companies are focusing on green initiatives that are profitable and could be more as climate change intensifies.
"There are three main misperceptions I am talking about with all investors: you give up the performance to become responsible investors, responsible investing is not common, and you can not have a good time. impact on government securities, "said Liberatore.
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