Finance can be green too

How to protect our environment and tackle climate change is one of the biggest challenges for everyone around the world. So how does the stock exchange and finance help to make the planet a greener, better place?

We work with lots of companies that are doing amazing things to help the environment. Some are developing and investing in renewable energy like solar and wind power. Others are finding more effective ways to manage and recycle our waste. Others are inventing new technologies that will make our daily lives and activities more environmentally friendly.

More and more investors want to buy shares in these businesses.

They think that these companies will become more successful in the future and, when they do, the investors will receive a share of the profits. But it’s not just about profits, people want to invest in businesses that are helping to make the world a better place.

The extra cash that investors put in to businesses help them to do more of their good work – whether that’s designing new products, hiring new people or selling more of their products around the world to help other countries tackle climate change.

To help these companies to stand out, London Stock Exchange has developed a special badge called the ‘Green Economy Mark’. This badge shows that at least half of the sales by these companies come from helping make the economy greener.

You can find out about some of these companies below.

See more articles and videos for children.

 

Calisen owns millions of ‘smart meters’ which tell you how much electricity and gas your home is using and so how to save energy (and money, too). Over the next few years, their engineers will install smart meters into millions more houses and businesses to help make Britain way more energy efficient.

 

  

 

 

  

 

  

 

 

 

Biffa is helping to change the way people think about waste. It collects 15,000 tonnes of rubbish every day from around 76,000 businesses and 2.2 million households. It doesn’t just collect rubbish; it recycles, treats, and safely disposes of it. It is building facilities that will create energy from waste that can’t be recycled - helping to power our homes.

  

 

  

 

 

  

 

  

 

 

Oxford Instruments may be one of the cleverest companies in Britain. Its knowledge about the performance of materials means that it can help large industrial companies and scientific researchers in many important areas – from finding cures for cancer to improving batteries for electric vehicles.

 

 

 

  

 

 

  

 

  

 

Xeros has developed technologies to reduce the environmental impact of your clothes, cutting the amount of water and chemicals used to make and wash them, reducing energy use and CO2 emissions. It has also developed a device for your washing machine to prevent microplastics polluting the world’s oceans.

 

  

 

 

 

 

DS Smith is a global packaging company, supported by recycling and papermaking divisions. With sustainability and circularity at the heart of its business model, it is the largest collector of paper and cardboard in Europe, which it uses to make cardboard packaging (mainly for food and drink products) which can then be recycled again. To do this, it employs around 30,000 people across 34 countries.

 

 

 

  

 

 

 

 

 

Good Energy supplies homes and businesses around the UK with energy that comes from renewable sources. It makes it easy for people to buy their energy locally, such as from nearby wind farms or gas made from food waste.

 

 

 

  

 

 

  

 

  

 

Johnson Matthey is a global leader in science that makes the world cleaner and healthier. The company invented the first catalytic convertor and today its catalysts prevent around 20 million tonnes of pollutants from entering the atmosphere every year. It uses its scientific expertise to enable cleaner air, improved health and the more efficient use of our planet's natural resources.

 

 

 

 

  

 

 

  

 

  

This is just a small selection of the Green Economy Mark companies on London Stock Exchange – in total there are 86 companies, which collectively are worth 67 billion pounds!

See the full list of Green Economy Mark companies.

See more articles and videos for children.

Watch our film on the Green Economy.