Are climate change stocks risky investments?

Climate change stocks can be risky investments. Some companies focus on still unproven technologies or those that aren't commercially viable without government assistance. Others don't have the financial capacity to fund their heavy investments to build out sustainable businesses to battle climate change. However, not all climate change stocks are risky. Many have matured to the point where they can fund their operations and growth through internally generated profits.

Can climate change stocks provide dividends?

Yes, some climate change stocks can provide dividends. For example, several companies operate business models that generate stable cash flow through the sale of renewable power or other services under long-term contracts and government-regulated rate structures. That provides them with the money to invest in their businesses and pay dividends.

What companies are profiting from climate change?

Many companies are profiting from climate change. For example, those supporting renewable energy, electric vehicles, energy efficiency, and other forms of lower-carbon energy are all trying to make money while helping reduce the potential future impact of climate change.

What are the top five contributors to climate change?

The top five contributors to climate change are:Electricity and heat generation: Burning fossil fuels to produce power or to heat homes and businesses.Transportation: Cars, trucks, buses, and planes fueled by fossil fuels.Industry: Manufacturing and construction processes like making cement and steel.Agriculture: Farming and raising livestock release greenhouse gases such as methane.Deforestation: Trees remove carbon dioxide from the air, so cutting them down results in less carbon being removed from the atmosphere.

What types of companies are considered climate change stocks?

Climate change stocks include companies involved in lower-carbon energy (e.g., solar, wind, battery storage), electric vehicles, sustainable agriculture, and other businesses aimed at reducing the potential future impact of climate change.

Where can I find resources and information on climate stock investing?

You can find resources on climate stock investing from research and data providers such as Sustainalytics, financial platforms like the BlackRock Investment Institute, financial news sites like The Motley Fool, and government agencies such as the EPA.

How can I diversify my climate stock portfolio?

You can diversify your climate stock portfolio by taking a basket approach (investing in a mini-portfolio of companies focused on combating climate change) or investing in a clean energy ETF.

5 Best Climate Change Stocks to Buy in 2026

A look at some of the companies leading the fight against climate change.

By Matthew DiLallo – Updated Feb 13, 2026 at 3:24 PM EST | Fact-checked by Frank Bass

Key Points

Climate change could reduce global economic output by up to 14% by 2050, which could have a sizeable impact on the stock market.
Governments and companies are investing heavily in renewable resources and EVs to mitigate climate change.
Leading companies like Tesla and NextEra Energy are pivotal in driving the transition to sustainable energy.

Climate change stocks are companies focused on reducing the economic and environmental impact of global warming. Rising temperatures are linked to more natural disasters, flooding, and other costly disruptions that can weigh on the global economy and markets.

Swiss Re estimates climate change could reduce global economic output by 11% to 14% by 2050, potentially wiping out up to $23 trillion in GDP. Risks like these are pushing governments and businesses to invest heavily in renewable energy, electric vehicles, and emerging climate technologies.

While tackling climate change requires a global effort, some companies are already leading the shift toward a cleaner economy. Here’s a closer look at several climate change stocks positioned to benefit from that transition.

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Tesla (NASDAQ:TSLA)	$1.4 trillion	0.00%	Automobiles
Brookfield Renewable (NYSE:BEPC)	$7.0 billion	3.92%	Independent Power and Renewable Electricity Producers
NextEra Energy (NYSE:NEE)	$186.5 billion	2.60%	Electric Utilities
Constellation Energy (NASDAQ:CEG)	$102.1 billion	0.56%	Electric Utilities
GE Vernova (NYSE:GEV)	$229.4 billion	0.21%	Electrical Equipment

Data as of Mar 22, 2026. Showing 5 of 5 tickers.

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NASDAQ: TSLA

Tesla

Today's Change

(-3.33%) $-12.67

Current Price

$367.63

Key Data Points

Market Cap

$1.4T

Day's Range

$364.48 - $379.87

52wk Range

$214.25 - $498.83

Volume

3.8M

Avg Vol

61M

Gross Margin

18.03%

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Tesla (TSLA -3.33%) is on a mission to accelerate the global transition to sustainable energy. It has almost single-handedly driven the adoption of electric vehicles. The company is a leader in the sector, producing both luxury vehicles and more affordable cars. It also produces zero-emission semis, mid-sized SUVs, and trucks.

EVs are only part of Tesla's sustainable energy ecosystem. The company also manufactures an array of solar energy and battery storage products to increase renewable energy usage. It aims to make climate tech products more accessible and affordable to more people, helping to accelerate the adoption of clean transportation and energy production. One way it has done that is by bringing EV battery production in-house to reduce costs.

Tesla is also driving towards autonomy. It's investing heavily in autonomous driving technology to support its plans to launch a robotaxi. The company is also developing a humanoid robot (Optimus). These initiatives will help increase efficiency and reduce carbon emissions.

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2. NextEra Energy

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NYSE: NEE

NextEra Energy

Today's Change

(-2.86%) $-2.65

Current Price

$89.77

Key Data Points

Market Cap

$186B

Day's Range

$89.17 - $94.20

52wk Range

$61.72 - $95.91

Volume

565K

Avg Vol

9.5M

Gross Margin

36.20%

Dividend Yield

2.60%

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NextEra Energy (NEE -3.15%) is a global leader in producing energy from the wind and sun. It's also a world leader in battery storage. The electric utility is among the biggest in the U.S. and has a large-scale energy infrastructure business that operates clean energy generating assets, natural gas pipelines, and electricity transmission lines.

The company's focus on renewable energy has paid big dividends over the years. NextEra has increased its earnings per share at a 10% compound annual growth rate over the past decade, which is three times faster than its rivals. That's helped power above-average dividend growth and market-beating total returns.

NextEra Energy has a vast pipeline of lower-carbon energy development opportunities as it continues to lead in decarbonizing the power grid. The company's energy resources segment alone sees the potential to deploy between 76.6 gigawatts (GW) and 107.6 GW of new clean energy capacity from 2026 through 2032. That compares to its 39 GW of operating capacity in mid-2025. It's also investing in emerging climate tech, such as green hydrogen, which uses renewable energy to electrolyze water and produce emissions-free hydrogen. The fuel has a range of potential uses in the energy, industrial, and transportation sectors and could help further reduce emissions.

3. Brookfield Renewable

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NYSE: BEPC

Brookfield Renewable

Today's Change

(-4.21%) $-1.70

Current Price

$38.67

Key Data Points

Market Cap

$7.0B

Day's Range

$38.23 - $40.59

52wk Range

$23.73 - $45.18

Volume

73K

Avg Vol

1.1M

Gross Margin

26.62%

Dividend Yield

3.92%

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Brookfield Renewable (BEPC -4.43%) is a global leader in decarbonization. Its operations enable companies to avoid more than 250 million tonnes of carbon each year.

Brookfield operates one of the world's largest renewable energy platforms. It owns hydroelectric, wind (onshore and offshore), solar (utility-scale and distributed generation), and energy storage facilities across five continents. It primarily sells the power it produces under long-term contracts to users such as electric utilities and large corporate power buyers. The company is also a leading developer of renewable energy assets. It has over 270 GW of renewable power assets currently operating or in its development pipeline.

The company also has a growing sustainable solutions platform. It has investments spanning carbon capture and storage, biofuels production, materials recycling, global nuclear services, solar panel manufacturing, and e-fuels.

Brookfield's global scale has made it a partner of choice for companies and governments seeking to achieve their carbon reduction goals. That's helping power above-average earnings growth. It expects to grow its funds from operations (FFO) by more than 10% per share annually through 2030. That should support its plan to increase its dividend by 5% to 9% per year.

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NASDAQ: CEG

Constellation Energy

Today's Change

(-11.18%) $-35.38

Current Price

$281.09

Key Data Points

Market Cap

$102B

Day's Range

$277.87 - $316.47

52wk Range

$161.35 - $412.70

Volume

257K

Avg Vol

3.6M

Gross Margin

17.35%

Dividend Yield

0.56%

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Constellation Energy (CEG -11.18%) is the nation's largest producer of carbon-free energy. It has more than 32.4 GW of power-generating capacity, 90% of which is carbon-free energy. It has the nation's largest nuclear power fleet, which complements its hydro, wind, and solar energy resources. The company provides its carbon-free energy to more than 20 million homes and businesses.

Constellation Energy agreed to buy Calpine to create the country's leading producer of clean and reliable energy. The combined company will operate almost 60 GW of zero- and low-emissions power sources, including nuclear, natural gas, geothermal, hydro, wind, solar, cogeneration, and battery storage.

Constellation Energy is also helping jump-start the country's nuclear power renaissance. It's working to restart Three Mile Island Unit 1, which it shut down for economic reasons several years ago. However, technology giant Microsoft (MSFT -1.92%) signed a 20-year power purchase agreement for all 835 megawatts of the unit's capacity to support its cloud and AI power needs. Constellation also signed a 20-year nuclear power deal with Meta Platforms (META -2.15%) for 1.1 GW of power from its Clinton Clean Energy Center starting in mid-2027.

5. GE Vernova

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NYSE: GEV

GE Vernova

Today's Change

(-3.00%) $-26.32

Current Price

$851.07

Key Data Points

Market Cap

$229B

Day's Range

$844.25 - $891.99

52wk Range

$252.25 - $894.93

Volume

4.4M

Avg Vol

2.8M

Gross Margin

20.28%

Dividend Yield

0.21%

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GE Vernova (GEV -2.90%) was formed in 2024 following the merger and spin-off of General Electric's former energy businesses: GE Power, GE Renewable Energy, GE Digital, and GE Energy Financial Services. The company has three operating segments:

Power: The company provides gas-fired electricity generation solutions to utilities and other power producers.
Wind: GE Vernova is an industry leader in manufacturing and servicing wind turbines.
Electrification: The company's technology helps modernize and digitize the electricity grid.

The company's wind and gas turbines produce about 25% of the world's electricity. It has a significant backlog of projects that support the growing demand for lower-carbon electricity. That should power growing revenue and profitability for GE Vernova in the coming years.

Types of Climate Stocks

There are several different climate stocks:

Clean energy component manufacturing companies: These companies build the components needed to produce lower-carbon energy, such as wind turbines and solar panels.
Clean power producers: These companies develop and operate wind farms and solar energy generating facilities, typically backed by long-term PPAs.
EV companies: These companies build EVs or components needed for EVs (e.g., lithium and batteries).

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FAQs on climate change stocks

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About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in Brookfield Renewable, Meta Platforms, NextEra Energy, and Tesla. The Motley Fool has positions in and recommends Constellation Energy, GE Vernova, Meta Platforms, Microsoft, NextEra Energy, and Tesla. The Motley Fool recommends Brookfield Renewable. The Motley Fool has a disclosure policy.

5 Best Climate Change Stocks to Buy in 2026

A look at some of the companies leading the fight against climate change.

Key Points

Key Data Points

2. NextEra Energy

Key Data Points

3. Brookfield Renewable

Key Data Points

Key Data Points

5. GE Vernova

Key Data Points

Types of Climate Stocks

Related investing topics

Best Growth Stocks to Buy in 2026

Best ESG ETFs to Buy in 2026

When to Sell Stocks: 5 Reasons to Sell a Stock

Best Liquefied Natural Gas Stocks of 2026 and How to Invest in Them

FAQs on climate change stocks

Are climate change stocks risky investments?

Are climate change stocks risky investments?

Can climate change stocks provide dividends?

Can climate change stocks provide dividends?

What companies are profiting from climate change?

What companies are profiting from climate change?

What are the top five contributors to climate change?

What are the top five contributors to climate change?

What types of companies are considered climate change stocks?

What types of companies are considered climate change stocks?

Where can I find resources and information on climate stock investing?

Where can I find resources and information on climate stock investing?

How can I diversify my climate stock portfolio?

How can I diversify my climate stock portfolio?

About the Author

Stocks Mentioned

Our Guides

Premium Investing Services

FAQs on climate change stocks

Are climate change stocks risky investments?

Are climate change stocks risky investments?

Can climate change stocks provide dividends?

Can climate change stocks provide dividends?

What companies are profiting from climate change?

What companies are profiting from climate change?

What are the top five contributors to climate change?

What are the top five contributors to climate change?

What types of companies are considered climate change stocks?

What types of companies are considered climate change stocks?

Where can I find resources and information on climate stock investing?

Where can I find resources and information on climate stock investing?

How can I diversify my climate stock portfolio?

How can I diversify my climate stock portfolio?

Best Growth Stocks to Buy in 2026

Best ESG ETFs to Buy in 2026

When to Sell Stocks: 5 Reasons to Sell a Stock

Best Liquefied Natural Gas Stocks of 2026 and How to Invest in Them

Key Data Points

Top climate change stocks to consider

1. Tesla

2. NextEra Energy

4. Constellation Energy

Benefits and risks of investing in climate change stocks

How to invest in climate change stocks

The bottom line

Related investing topics

FAQ

Key Data Points

Key Data Points

Key Data Points

Key Data Points

3. Brookfield Renewable

5. GE Vernova

Types of Climate Stocks