March 3, 2021 | AtoZ Markets – Green chip stocks are working towards the common good of the people and the environment. These companies focus on lessening pollution, innovating to reduce carbon footprint, and alternative resources like energy and fuel, recycling, and upcycling. In other terms, they are environmental-friendly companies that entice socially responsible investors.
Blue chips are well-known companies that portray stability and a strong foundation. We are talking about company giants such as McDonald’s, Burger King, Apple Inc., PepsiCo, Coca Cola, and the likes. In short, these are the companies that investors usually say are safer options since they’ve proven themselves profitable. They surpassed all of the economic downfalls and challenges while and remained standing still. The green chip acquired such a name from blue chip as a basis.
Socially responsible investing
Socially conscious people practice socially responsible investing. Their revenue and social impact goal are an unusual combination that anyone may find strange since they don’t always go hand in hand. They usually prioritize companies that work for good deeds for people and the environment.
The green industry
Solar energy, from the word solar, collects sunlight then converts it to electricity. The most useful advantage of using solar energy products such as solar panels is a noticeably decreased electricity bill. Commercial and utility buildings usually use them since they are not suitable for homes with complex roof shapes like gable, valley, or dormer. The installation is typically on the roof since it’s adjacent to the sun.
Wind power is also an alternative energy source. In the past 20 years, it has proved itself to be a fast-growing sector, especially with its decrease in production cost.
Organic agriculture aims to create biological diversity and soil improvement by eliminating pesticides, fertilizers, antibiotics and giving better food on the table for families.
This mode of transportation requires no fossil fuels. It uses renewal energy for its models. An existing example is the use of E-jeepneys
or Electrical jeepneys in the Philippines to replace the traditional public transportation.
Green architecture is also called green design. It aims to create buildings that maximize nature’s essential elements such as light and ventilation and use eco-friendly, indigenous, or upcycled items. Sustainable architecture is an excellent example since it is a design that aims to lessen the harmful impacts of traditional buildings through efficient planning that can provide essentials of the building such as energy, water, ventilation, and the like without outside sources.
Green chip stocks behavior
Green chips tend to have a more volatile behavior, especially in bull markets. The bull market is a rise in the financial market. Let’s consider what happened back in 2003 when crude oil was costly, so it was natural to look for alternatives that green industries produce. This bull market suddenly turned into a bear market when the conventional energy suddenly dropped in price again. A bear market is a decline in stocks. Just like any finance market behavior, green chip stocks are very unpredictable.