Are climate change stocks risky investments?

Climate change stocks can be risky investments. Some companies focus on still-unproven technologies or on those that aren't commercially viable without government assistance. Others don't have the financial capacity to make the heavy investments needed to build sustainable businesses that combat 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, including Tesla, NextEra Energy, GE Vernova, Brookfield Renewable, and Constellation Energy. They are among the leaders in supporting renewable energy, electric vehicles, energy efficiency, and other lower-carbon energy sources, all of which aim to make money while helping reduce the potential future impact of climate change.

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 that aim to reduce 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 for 2026 and How to Invest

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

By Matthew DiLallo – Updated Sep 15, 2026 at 1:16 PM EST | Fact-checked by Frank Bass

Key Points

Swiss Re projects climate change may slash global GDP by up to 14% by 2050, risking $23 trillion of economic output.
That's driving governments and businesses to boost their investments in renewable energy and climate tech.
Investing in climate change stocks offers potential gains from companies leading this essential transition in energy use.

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5 top climate change stocks for 2026

Many companies are taking their social responsibility seriously by working to offset their carbon emissions to reduce the long-term impacts of climate change. Several are emerging as ESG investing leaders by spearheading efforts to increase renewable energy production and reduce fossil fuel use. Meanwhile, others are investing in emerging climate tech that could help reduce the impact of global warming.

Among the top climate change stocks to consider are:

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield	Industry
Tesla (NASDAQ:TSLA)	$1.4 trillion	0.00%	Automobiles
Brookfield Renewable (NYSE:BEPC)	$5.4 billion	5.33%	Independent Power and Renewable Electricity Producers
NextEra Energy (NYSE:NEE)	$169.1 billion	3.00%	Electric Utilities
Constellation Energy (NASDAQ:CEG)	$92.1 billion	0.64%	Electric Utilities
GE Vernova (NYSE:GEV)	$235.1 billion	0.20%	Electrical Equipment

Data as of Sep 16, 2026. Showing 5 of 5 total entries.

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Here's a closer look at these leading climate change stocks.

1. Tesla

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NASDAQ: TSLA

Tesla

Premium Feature

Moneyball Superscore

65/100

Today's Change

(1.92%) $6.83

Current Price

$363.41

Key Data Points

Market Cap

$1.4T

Day's Range

$354.89 - $364.44

52wk Range

$297.38 - $498.83

Volume

10.5M

Avg Vol

40.1M

Gross Margin

18.85%

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Tesla (TSLA +1.92%) 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 the use of renewable energy. It aims to make climate tech products more accessible and affordable to more people, thereby accelerating 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

Premium Feature

Moneyball Superscore

79/100

Today's Change

(-0.12%) $-0.10

Current Price

$80.97

Key Data Points

Market Cap

$169B

Day's Range

$80.80 - $81.97

52wk Range

$69.37 - $98.75

Volume

1.2M

Avg Vol

11.1M

Gross Margin

35.80%

Dividend Yield

3.00%

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In mid-2026, NextEra Energy (NEE -0.11%) agreed to buy fellow electric utility Dominion Energy (D +0.38%) in a $67 billion deal. It will create the world's largest operator of renewable power and battery storage, the top U.S. gas-fired power generator, and the second-largest U.S. nuclear fleet. The deal builds on a business that has already scaled into the country's largest electric utility and leading clean energy infrastructure development business. It has a decade-long track record of growing earnings per share at a 10% compound annual rate, which is three times faster than its rivals'.

NextEra isn't slowing down. 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 43 GW of operating capacity in mid-2026. 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. NextEra expects to grow its adjusted earnings per share at a compound annual rate of more than 9% through 2032 post-acquisition, an acceleration from its current expectation of over 8% compound annual earnings growth.

3. Brookfield Renewable

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NYSE: BEPC

Brookfield Renewable

Premium Feature

Moneyball Superscore

61/100

Today's Change

(0.21%) $0.06

Current Price

$29.11

Key Data Points

Market Cap

$5.4B

Day's Range

$29.05 - $29.51

52wk Range

$29.02 - $45.18

Volume

226.6K

Avg Vol

1.7M

Gross Margin

25.53%

Dividend Yield

5.33%

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Brookfield Renewable (BEPC +0.17%) is a global leader in decarbonization. It 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 250 GW of renewable power assets currently operating or under development.

The company also has a growing sustainable solutions platform. It has investments spanning carbon capture and storage, biofuels production, materials recycling, global nuclear services, 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 funds from operations (FFO) per share by more than 10% annually through 2031. That should support its plan to increase its dividend by 5% to 9% per year.

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4. Constellation Energy

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NASDAQ: CEG

Constellation Energy

Premium Feature

Moneyball Superscore

80/100

Today's Change

(-1.29%) $-3.37

Current Price

$256.53

Key Data Points

Market Cap

$92B

Day's Range

$254.71 - $263.26

52wk Range

$228.63 - $412.70

Volume

658.7K

Avg Vol

Gross Margin

17.37%

Dividend Yield

0.64%

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Constellation Energy (CEG -1.34%) is helping power the AI build-out with a source most investors completely overlooked until a few years ago: nuclear energy. Microsoft (MSFT -0.96%) signed a 20-year power purchase agreement for the full 835-megawatt output of its Mile Island Unit 1 -- which it's restarting after shutting it down for economic reasons several years ago -- to help power its cloud and AI operations. Meta Platforms (META +1.38%) followed with its own 20-year deal for 1.1 GW of capacity at Constellation's Clinton Clean Energy Center, starting in mid-2027.

These nuclear power contracts sit atop its already dominant position: Constellation is the nation's largest producer of carbon-free energy. It has 55 GW of power-generating capacity from nuclear, natural gas, geothermal, hydro, wind, and solar facilities. The company provides its carbon-free energy to more than 27 million homes and businesses. Between new AI demand and its existing large-scale operations, the company expects to deliver more than 20% compound annual earnings-per-share growth through 2029.

5. GE Vernova

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NYSE: GEV

GE Vernova

Premium Feature

Moneyball Superscore

81/100

Today's Change

(2.98%) $26.36

Current Price

$909.17

Key Data Points

Market Cap

$235B

Day's Range

$890.99 - $915.00

52wk Range

$530.16 - $1195.94

Volume

621.7K

Avg Vol

2.6M

Gross Margin

20.16%

Dividend Yield

0.20%

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GE Vernova (GEV +2.97%) 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 wind turbine manufacturing and service.
Electrification: The company's technology modernizes and digitizes 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. GE Vernova expects its revenue to grow at a low double-digit rate, reaching $52 billion by 2028, with expanding margins and free cash flow.

How to invest in climate change stocks

Here's a step-by-step guide on how to add one to your portfolio:

Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in climate change stocks

Investing in climate change stocks has pros and cons. Some of the benefits include:

Robust long-term growth prospects.
Passive income potential from dividend income.
The feeling of making a difference by investing in companies that are investing in fighting climate change.

Meanwhile, some risk factors are:

Changing government policies.
Varying year-to-year demand for solar panels and wind turbines due to changes in the economy, interest rates, or other factors.
The potential for underperformance by an individual climate change company due to mismanagement, excessive debt, or competition.

Methodology: How these stocks were chosen

To build this list, I screened publicly traded companies with meaningful exposure to the decarbonization trend (i.e., renewable power generation, electric vehicles, grid infrastructure, and renewable energy). From that group, I prioritized three things: holding a top-five position in their industry, a well-defined, above-average multi-year growth target (i.e., 5%+ earnings-per-share growth), and a track record of creating shareholder value (10%+ average annualized total returns). I drew companies from across industries, including utilities, industrials, and automakers, to give investors broad options to capitalize on the energy transition. This group scored well across these quality characteristics.

Should you invest in climate change stocks?

Dire warnings about the catastrophic impact of climate change are worrisome. However, they've spurred governments and other institutions to take steps to blunt its effects by reducing carbon emissions as quickly as possible.

Several companies have stepped up to lead the charge to a more sustainable world. These companies are in strong positions to cash in on the shift towards lower-carbon energy, regardless of government policy changes, corporate demand, or falling costs. Owning their shares enables you to participate in their growth, which will benefit the climate as they grow their businesses and help reduce global emissions.

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Investing in climate change stocks: FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, 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 for 2026 and How to Invest

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

Key Points

5 top climate change stocks for 2026

1. Tesla

Key Data Points

2. NextEra Energy

Key Data Points

3. Brookfield Renewable

Key Data Points

4. Constellation Energy

Key Data Points

5. GE Vernova

Key Data Points

How to invest in climate change stocks

Benefits and risks of investing in climate change stocks

Methodology: How these stocks were chosen

Should you invest in climate change stocks?

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Investing in climate change stocks: FAQ

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Investing in climate change stocks: FAQ

Are climate change stocks risky investments?

Can climate change stocks provide dividends?

What companies are profiting from climate change?

What types of companies are considered climate change stocks?

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

How can I diversify my climate stock portfolio?

1. Tesla

2. NextEra Energy

4. Constellation Energy

Benefits and risks of investing in climate change stocks

Methodology: How these stocks were chosen

Should you invest in climate change stocks?

Related investing topics

5 top climate change stocks for 2026

Key Data Points

3. Brookfield Renewable

5. GE Vernova

How to invest in climate change stocks

Key Data Points

Key Data Points

Key Data Points

Key Data Points