2023 is the year we need to start taking environmental preservation seriously. This should have happened decades ago, but progress is always slow and we are only now finally realizing the damage we are doing to our planet and the lasting effects it will have.
This is the year individuals need to change their ways and start taking an eco-friendly approach to life. This means every aspect of your life, including food shopping, power usage, carbon emissions, and even managing your finances and investments.
Yes, even things like investing, banking, and trading can invertedly contribute to environmental damage. This is why we need to consider things like ESG investing (environmental, social, and governance investing) and eco-friendly trading. Small changes to your financial habits can make a difference and help change your mindset going forward.
Below, we’ll discuss eco-friendly trading and how you can create a sustainable strategy for the betterment of our planet.
Eco-friendly Trading Strategy Explained
Sustainable investing is something we have seen a boom of in recent years as businesses have become more transparent about their carbon emissions and the impact they are having on the environment. People are becoming more conscious about the companies they invest in, and also the platforms and brokers they use to invest through.
In short, eco-friendly trading is the process of trading in markets like FOREX, Stocks, and Futures in an eco-friendly manner. It is a trading method that allows you to have a minimum environmental impact and not contribute to a huge output of carbon emissions. This includes a variety of factors, including
The hardware and equipment you use
The platforms you use to trade on
The companies you invest in
These are three simple areas that you can radically change to reduce your environmental impact when trading and start your eco-friendly trading strategy. Before you can start this, you must calculate your approximate carbon emissions during a standard trading week¾there are many free carbon calculators available.
You then have a benchmark to work against and can measure your progress as you implement your eco-friendly trading strategy.
How to Make an Eco-friendly Trading Strategy
With the three main areas in mind where you can make changes, and your current carbon emission output roughly calculated, you can start implementing your strategy. Please bear in mind that there are also intangibles that are difficult to measure concerning carbon emissions.
First, start with your hardware and the equipment you use. This is a simple way to reduce your emissions by reducing the power you use to trade. For example, if you trade using a desktop computer, you could invest in more efficient components, such as the PSU, to reduce the electricity you use. Reducing your energy output means that the process of trading isn’t contributing as much to carbon emissions and the build-up of greenhouse gases.
Secondly, look at the platforms you use to trade. For example, this could be a FOREX broker, a trading exchange, or a stocks and shares broker. Ideally, you’ll only use companies and platforms that have a clear sustainability policy and are actively trying to reduce their carbon footprint.
This is a trend we are seeing more and more today, and many companies have a page on their website dedicated to sustainability. Do your research and you should be able to find eco-friendly trading platforms. You can take this one step further and change software, like your web browser, only using platforms like Firefox that promote sustainability.
So, you have taken care of your equipment and the tools you use to trade. Things should be looking better already and the last major thing you can do is consider the things and companies you invest in. This depends on what you trade, and it is easier to do when trading in stocks and shares.
You can’t really make more eco-friendly choices with FOREX because you will be buying currency pairs that aren’t from a specific country. The only thing you could do here is trade currency pairs of countries that have the lowest CO2 output and the best long-term environmental plans.
Become Environmentally Friendly in Every Aspect of Your Life Today
If we really want to make a difference on our planet and protect what we have, then we have to start changing our habits in every aspect of our lives. We can start with simple things like recycling, changing to electric vehicles, and supporting businesses and charities that are sustainable and have eco-friendly practices.
However, that is just a start, and there are so many other things we can do too, like eco-friendly trading and being mindful of what companies we choose when sorting our finances. These might seem like small changes, but everything helps and if everyone makes a concerted effort, we can persevere.
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