Want to fight climate change? Don’t invest in Tesla
Climate change is almost unanimously considered one of the gravest threats facing humanity, with the worst-case scenarios representing massive environmental destruction. Investors hoping to combat it with their portfolio allocations can, but one famous environmentally focused company may actually be doing more harm than good.
Morgan Stanley identified 39 stocks that generate at least half their revenue “from the provision of solutions to climate change,” something it said was a central component of investing to make a difference, as opposed to just a making a buck.
“In our view, impact investing needs to begin with companies whose products and services have a notable positive environmental or social impact,” wrote Jessica Alsford, an equity strategist at the investment bank.
Photo courtesy of Christopher Michel.