With every passing day, more and more news articles and papers on global warming and its effects are flooding the internet. The climate is in fact changing, and it is indeed too late to stop it. There is certainly something attractive about the world ending, isn’t it? Being able to break free from the vicious cycle of life. 

But what if the effects of climate change do not stop at natural disasters? Experts predict that an economic change is certain with climate change. 

Stock Market and Climate Change

An abandoned oil rig in the U.K. during Covid-19.
An abandoned oil rig in the U.K. during Covid-19.

As more and more countries pledge to bring down their carbon emission rates, it’s certainly the corporations that are going to have to suffer the loss. Corporations produce just about everything we buy, use, and throw away and play an outsized role in driving global climate change.

A study conducted in the year 2017 proved that only 100 companies are responsible for 71% of the pollution on Earth. Imagine what 100% of them could do!

Coca-cola alone was responsible for most of the ocean pollution in the year 2019. And if we have to play the blame game, it’ll go on for eternities.

It is pretty evident that almost all the companies if they do not change their policies, will have to suffer a gigantic loss. 

Every day more and more people are starting to invest in Green Stocks, and studies suggest that the trend is here to stay. Most companies that are into renewable energy witnessed a boom in 2021, in India alone, whereas most “Brown” investments saw a decline. 

Also Read: How Climate Change Is Fuelling Trafficking And Sex Trade

Green Vs. Brown

Conceptual image of profiting through green investments
Conceptual image of profiting through green investments

“Green” stocks are those companies that invest in environmentally friendly alternative energy resources. Brown stocks are just the opposite. Companies investing in oil and coal are known as “Brown” stocks.

Long ago, a prediction was made. That when the concerns of climate change strengthen, it’ll be the brown stocks that will have to suffer. As the carbon emission rates continue to rise, more and more countries have pledged to curb it.

Companies like Coca-cola, PepsiCo, Unilever, and Britannia were claimed to be one of the top pollution-causing companies in the world. Prices of companies like Coca-cola, PepsiCo, and Nestle are witnessing an exponential decline. 

Companies investing in environmentally friendly alternatives are, in fact, witnessing a steady rise in their share prices. As climate change concerns grow more and more in people, it may be said that brown companies will have to shift to more green alternatives.

We The People

Wall Street, New York Stock Exchange
Wall Street, New York Stock Exchange

As human beings, we are gradually realising that the future is going to get even more challenging. Everyone is doing their part to escape the inescapable fate. Some are praying, some are hoping, some are celebrating, some are working towards a change, some are investing in greener alternatives.

If more and more people realise that green is as good as brown, and it helps the climate as well, brown companies can bid their farewell. However, the argument remains. Are green companies green?

Whenever we think of factories, the image of gigantic chimneys producing dark smoke clouds pops up in our minds. Can that be altered? Is it possible to produce something on an industrial scale and not create pollution? Perhaps. 

For now, the future of stocks is also being controlled by climate change. It is not merely climate change anymore. But the change of it all depends on us.

Image Sources: Google Images

Sources: The New York Times, CNBC, Mint

Connect with the Blogger: Debanjan Dasgupta

This post is tagged under: climate change, pollution, stock market, finance, economy, trading, crypto, financial market, global warming, carbon emission,  what is climate change, global climate change, global warming, impact of climate change, climate change and global warming, effects of climate change, climate change news,  Stock Market Fair, Indian stock market crash, Bombay Stock Exchange, Nifty, nifty share price, Sensex, sensex earnings, green investment, brown investment, environment, environmentally friendly

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