How to Make Money by Going Green

Save Money, Make Money and Help the Environment

So what actions and initiatives can you take to make money by going green?

This page is jammed full of green business investment ideas for eco-minded entrepreneurs. It also includes forty simple actions to do now to make money by going green.

Many of us are leaning towards using eco-friendly alternatives to everyday products. The words 'sustainable' and 'green' are more popular than ever in the workplace, at home and in the corporate world.

In 2020, Global Data recorded that 45% of UK shoppers actively buy environmentally and animal-friendly products. There is an increasing demand for greener options and earth-friendly alternatives. If you want to make money by going green, combine your passion for business with your desire to save the planet.

Discover TopEco's Top Forty Ways to Make Money By Going Green

Going green is easy when you know what to do. Making money by going green is good for your purse and the environment! Make small changes every day and vote for the environment with your actions and your buying choices.

1. Start an Environmental Blog and Build Ethical Affiliate Relationships
2. Manufacture or Sell Eco-Friendly Fashion
3. Fix and Sell Second Hand Bicycles
4. Grow Your Own Garden Produce
5. Create Handmade Crafts from Recycled Materials
6. Make and Sell Eco-Friendly Kids Toys
7. Recycle e-Waste for Rewards
8. Recycle Plastic Bottles and Cans for Rewards
9. Recycle Paper to Earn Cashback
10. Sell Old Furniture to Restoration Workshops
11. Apply for Energy Efficiency Tax Breaks
12. Work for an Eco-Conscious Company
13. Work from Home or Begin Your Own Sustainable Living Start-up
14. Start a Green Gift Shop
15. Make Your Own Cleaning Products & Sell Them to Friends & Family
16. Start a Green Cleaning Business
17. Start a Composting Business
18. Start an Eco-Friendly Gardening Business
19. Build a Plant Delivery Business
20. Start a Freelance Business as a Green Fundraiser
21. Become a Freelance Green Grant Writer
22. Start a Green Remodelling Business
23. Start a Green Architecture Business
24. Start a Cooperative
25. Become an Eco-Friendly Food Supplier
26. Open an Eco-Restaurant
27. Become an Organic, Vegan Nutritionist
28. Become an Eco-Travel Planner
29. Become a Sustainable Events Planner
30. Open an Organic, Chemical-Free Spa
31. Build a Wind Farm
32. Be a Geothermal Developer
33. Build a Solar Panel Manufacturing Business
34. Build Green Software
35. Develop Green Apps
36. Sell Energy-Efficient Cars
37. Provide Legal Services on Environmental Law
38. Invest Your Money in Companies Embracing ESG Factors
39. Become a Green Venture Capitalist
40. Become a Green Financial Advisor

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And, if you think that our top forty sounds like hard work and you want to make money by going green by SAVE money, then check out:

16 Eco-Friendly Ways to Save Money With Easy Everyday Actions

Becoming eco-friendly is easier than you think. Many green choices are also budget-friendly. Here are some of the top ways you can live a greener way of life and save money in the process.

1. Drive an Electric Car
2. Ride an Electric Bike
3. Use a Heated Rail/Airer to Dry Clothes
4. Get Good Property Insulation
5. Buy in High-Quality, Sustainable Furniture
6. Turn Electrical Appliances Off
7. Use Rechargeable Batteries
8. Compost Food Scraps
9. Save Trees & Go Digital
10. Wash Clothes on the Cold Cycle
11. Eat Less Meat
12. Eat Less Dairy
13. Buy Seasonal Fruits & Vegetables
14. Use Your Own Bag
15. Fix-It, Don't Ditch It
16. Think Before You Buy - Anything

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Start an Eco-Friendly Business and Make Money By Going Green

Gain an Advantage and Make Money By Going Green in Business - Whether you are a small company, a large corporation, self-employed or work from home, every business, enterprise and endeavour needs a remarkable advantage. Raising your profile above the standard puts you past the average and gets you noticed.

Both lists above, 16 Eco-Friendly Ways to Save Money and the Top Forty Ways to Make Money By Going Green, contain actions to make money by going green when starting as an individual. But what happens when you've embraced creating an eco-friendly business? 

Number 38 of 'TopEco's Top Forty Ways to Make Money By Going Green', ESG is mentioned. This blog explains how to leverage ESG and make money by going green in today's economy. 

Sustainable Values and Objectives to Make Money by Going Green

Research shows that companies that skilfully address their environmental and social impact have better governance practices (ESG) and are more profitable in the medium to long term. In other words, you can make money by going green by attracting the right investors to your cause.

Make Money By Going Green in Two Main Ways

There is a two-pronged approach to making money by going green. There are businesses or entrepreneurs that don't want to attract investment or sell shares and there are those that do. 

However, financial success comes from the ability to attract attention and sell services or stock. Business success is the same, and an assessment of victory is growth. 

According to Science Direct green investments are not just a luxury good deed but a necessity for improved financial stability and performance.

According to many financial gurus, something is dying if your company is not growing. Business owners lose profit, employees, equity, or all three. It's the same with independent entrepreneurs. If you're not growing, you're dying.

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Make Money By Going Green & Stay Ahead of Your Competition

Here are three ways you can make money by going green to help your bottom line and the planet:

1. Revenue and Tax Incentives

By incorporating sustainable practices into your decision-making, you can satisfy any future laws on time and under budget. A sustainable approach wins contracts and earns extra tax credits, rebates and savings. There is also a medley of subsidies and funding schemes available to entrepreneurs that want to be more environmentally friendly. 

You may get tax relief or be exempt from some taxes, for example if:

• You use a lot of energy because of the nature of your business.
• You’re a small business that does not use much energy.
• You buy energy-efficient technology for your business.

You can also pay less tax by applying for schemes to help demonstrate that you’re operating more efficiently and producing waste that’s less damaging.

Environmental taxes encourage your business to operate in a more eco-friendly way. There are taxes and schemes for different types and sizes of businesses.

2. Enhance Brand Loyalty

Being ecologically conscious is somewhat of a prestige symbol. Modern-day consumers frown upon companies actively melting glaciers and clearing vast areas of the earth's forests to plump their already bulging profits. Clever consumers are voting for change with their buying choices, and if companies miss the insight, they will fall. Greenwashing aside, if you run your business with a sustainable eco-friendly approach you can attract attention in your marketing messages and gain a substantial competitive edge over your less 'green' competitors. If you do the opposite then beware the consequences. For example, one of the largest oil companies in the world, Halliburton, was accused of several serious offences. They conducted trade with banned countries and overcharged the US army for supplies during the Iraq War. They mismanaged waste on a large scale, were charged with sexual assault and rape, and exposed employees to hazardous chemicals. So, not a brand that consumers like any longer!

Managing your business environmentally responsibly allows you to include a sustainable slant into your marketing approach and gain a substantial competitive edge over your less engaged competitors.

3. Reduce Costs & Overheads

Contrary to old-school, big business thinking where sustainability may interfere with profitability; it is indeed true that you can make money by going green. For example, you can reduce costs by utilising energy-efficient lighting or creatively repurposing existing resources, such as using greywater (kitchen sink water and shower water) for irrigation. In other words, the more sustainable your company gets, the fewer outside resources it will consume. With growing energy costs, everyone must reconsider how they obtain resources. According to a leading research company, in contrast to conventional approaches, a sustainability strategy can significantly diminish operating budgets by up to sixty per cent. Or, put another way, strong ESG propositions relate to higher financial returns and lower downside risk. 

Going green may cost less than you think. Many business costs of going green are more accurately viewed as investments and will save you money in the long term. The opportunity to grow sales by going green can vastly outweigh the initial expenditure.

We have mentioned ESG a lot throughout the subject of making money by going green, which is because it is the fundamental backbone of the issue.

Let's take a closer look at ESG.

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What Are ESG Practices? 

Today, ethical considerations and alignment with higher values remain common motivations of many ESG investors. Still, the field has expanded to consider economic relevance too. Many investors now look to incorporate ESG factors into the investment process alongside the traditional financial analysis.

How Can You Make Money by Going Green and Be Socially Responsible?

ESG stands for environmental, social, and governance and is a set of standards and criteria for a company's operations that socially aware investors use to screen potential investments.

It's a very mixed bag for ESG investing and making money by going green. Investors may follow various methods for socially responsible investing (SRI). There are many new global risk and sustainability factors for savvy investors to consider, including:

• Rising sea levels and flood risk
• Privacy and data security
• Demographic shifts and regulatory pressures
• Alignment with ethical considerations

Make Money By Going Green & Avoiding Non-Ethical Business Activities

ESG investing is increasing exponentially as more investors utilise ESG data and tools to support their investment decision-making. SRI began in the 1960s, and investors excluded specific trades and industries from their portfolios based on non-ethical business activities. They also avoided 'sin stocks' of companies that engage in activities that can be harmful, such as tobacco, alcohol, firearms and industries that pollute the environment.

Keep an eye on those sin stocks that 'ethical' fund managers may run. They can't embrace the right mindset if they deal in shares of companies involved in activities that are considered unethical, such as alcohol, tobacco, gambling, adult entertainment or weapons. Ethical investors tend to exclude sin stocks, as the companies involved are thought to be making money from exploiting human weaknesses and vices.

With ESG taking an essential role in how to make money by going green, let's break down each element of ESG and take a closer look at the intricacies of financial reward due to environmental, social and governance factors.

Environmental is the 'E' in ESG and assesses how a company uses natural resources and considers its environmental effect, both in direct operations and across supply chains.

• Climate change ideologies embrace: issues with lower carbon emission outputs, lower product carbon footprints, financing of environmental impact and the sector of climate change vulnerability.
• Natural resources include solutions that cover: water stress, biodiversity & land use, and raw material sourcing.
• Pollution & waste contain principles that include: toxic emissions & waste, packaging material and electronic waste management.
• Ecological opportunities include the development of clean technologies, green buildings and renewable energy prospects. 

Social is the 'S' in ESG and assesses how a company treats and manages its people and how these attitudes filter into the broader culture.

• Human capital ideologies embrace labour management, human capital development, health and safety and supply chain labour standards.
• Product liability solutions that cover: product safety and quality, chemical safety, financial product safety, privacy and data security, responsible investment and health and demographic risk.
• Stakeholder opposition contains principles that include: controversial sourcing.
• Social opportunities include access to communications, finance, access to healthcare and opportunities in health and nutrition.

Governance is the 'G' in ESG and is an assessment of how a company makes its decisions and operates, manages its risks, and deals with the rights of shareholders.

• Corporate governance includes board diversity, executive pay, ownership and control, and accounting.
• Corporate behaviour includes solutions that cover: business ethics, anti-competitive practices, tax transparency, corruption and financial system instability. 

So, the conclusion is that if you want to make money by going green, embrace the factors above. The attention you get if you apply the assessments above will get the growth you seek. With the right awareness comes sales and investors. Consumers use many of the factors above to influence their buying choices and investors use many ESG factors to control their asset analysis.

In other words, if you are in business you would be wise to appeal to those using ESG factors when it comes to investment choices. Be seen where it matters most and it will be easy to make money by going green.

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What It Means to Make Money By Going Green

Becoming a 'sustainable' or 'ethical' investor is more complex than switching to e-billing or washing your hemp sweater on a cold cycle. 

Many investment funds assert themselves to be 'sustainable' or 'ethical', but at the moment, there is no official depiction of what that signifies. This lackadaisical approach means 'greenwashing' is rife.

Greenwashing describes deceptive marketing claims to falsely suggest the environmental usefulness of a product or service or promote a false image of caring for the climate. Click the image for more on this...

If you are looking at ethical investments, there are three category badges to be aware of:

• Exclude – portfolio funds that exclude specific types of businesses such as tobacco or oil.
• Consider – funds that gently take into consideration ethical practices.
• Embrace – funds that actively invest in companies that deliver positive environmental and social results.

Make Money By Going Green With Your Investment Portfolio

The options are far more varied if you can choose funds that positively contribute to the planet rather than settle for funds that try to do no harm. For example, avoiding companies that engage in fossil fuel use will yield a weaker return than an investment into innovation that looks to utilise green, sustainable energy.

Make Money By Going Green With Stocks and Shares 

Investing in individual stocks and shares that set out to help the planet can be tricky as one person's 'ethical' is another investor's 'no-go'. There is a specific stock market index called the FTSE4Good, which claims only to track the performance of ethical companies. However, its main constituents in the UK are HSBC, Shell, GlaxoSmithKline and AstraZeneca. Somewhat of a contradiction, we can all see that. If it's ethical you want, then avoid that bunch with a bamboo bargepole.

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Top Green Investing Opportunities that Make Money by Going Green

Eco-friendly investments can provide profits as well as environmental benefits. As the world adjusts to climate change, older technologies such as fossil fuels and polluting industries will likely face higher costs and regulatory barriers, providing a market opportunity for alternatives. 

There are several ethical investing sectors that you can dive into today. Go with a cause that is close to your heart or target a green investment opportunity you think has the chance to succeed.

Good Green Funds Include:

• Impax Asian Environmental Markets Fund
• Montenaro Better World Fund
• M&G's Positive Impact Fund
• Pioneer Impact Fund
• Global Equities Impact Fund

The following are some of the major avenues for green investing:

• Renewable Energy - Hydroelectricity, Wind Power, Solar Energy & Geothermal Energy
• Pollution Controls - Greenhouse Gas Emission Control, Air Pollution Control, Fuel Chem Technologies, Process Optimisation, Water Treatment and Advanced Engineering Services.
• Green Transportation - Fully Electric Vehicles, Fuel-Cell Technology, Energy Generation and Storage Systems. 
• Waste Reduction - Paper, Metal and Glass Recycling, Reprocessing/Reusing Waste Oil, Batteries, Mobile Phones, Computers and Car Parts.
• Alternative Agriculture - Organic Farming and Aquaculture
• Water Investments - Purification and Distribution

As there are a variety of individual shares, it shows that it can be hard to devise a portfolio on your own. So, of course, it will be easier to get broad exposure to companies with sustainable characteristics via a fund that diversifies your money across several different stocks and shares.

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Are Sustainable Investments Slow to Get Going?

While we are happy to switch our light bulbs to LEDs, brush our teeth with bamboo toothbrushes, add our signature to save the local oak and repeatedly buy a bag for life because all the others are dying in a cupboard under the stairs, the ethical investment revolution is sluggish to get going. 

Why are we happy to live in a sea of bamboo consumables in our bathrooms but the train of thought on green investing is slow to get to the superhighway of action?

At the time of writing this article, the Investment Association puts the sustainable sector in less than 2% of total funds in the UK. Yet research suggests that 11 out of 16 UK-focused ethical funds outperformed the average return delivered by other fund investments in the UK stock market.

John Ditchfield, the head of the Ethical Investment Association, accuses the financial services industry of apparent indifference towards the sector. The evidence shows itself in the number of financial advisers operating in the UK that are part of the Ethical Investment Association - only 80 out of 26,000!

However, the figures are unmistakable. Over the last five years, the average UK fund rose 37 per cent, but the ethical UK funds went up by 47 per cent. 

Over the last twelve months, the average UK fund fell 1 per cent while ethical funds were up nearly 3 per cent.

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An Eco-Friendly Tick-Sheet

So, what are we waiting for, we should ask ourselves? The first thing on your to-do list this week should be to speak to your fund manager, if you have one, and get your investment ducks in an eco-friendly row.   

Ask us to create an eco-friendly checklist for your to-do actions.

Or ask us to create an eco-friendly tick-sheet. If enough of you ask, we shall make it happen!

And if you need more evidence, there's always our monthly newsletter to keep you informed.

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