Climate change stocks are publicly traded companies with businesses geared towards reducing the impact of climate change on the global economy. Climate change has the potential to have a devastating impact on the economy and stock market. The rise in temperatures from global warming is linked to more natural disasters, coastal flooding, and a range of other issues.
According to a report by Swiss Re, a leading global insurance provider, the effects of climate change could slash global economic output by 11% to 14% by 2050. That could wipe out as much as $23 trillion of global gross domestic product. Such a decline in global economic output would have a significant effect on the stock market.
Dire warnings like that are driving governments and companies to get serious about reducing carbon emissions to lessen the impact of climate change. They're pouring trillions of dollars into renewable energy and electric vehicles (EVs) to reduce fossil fuel use. They're also investing in emerging climate tech to further the fight against climate change.
It will take a global effort to reduce carbon emissions to push back against the effects of climate change. However, clear leaders are emerging in this battle by helping to accelerate the shift toward a cleaner future.
Here's a closer look at a few companies helping to lead the charge against global warming. They stand out as some of the best climate change stocks to consider buying.
Top climate change stocks to watch
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, which could help to reduce the impact of global warming.
Among the top climate change stocks to consider are:
Here's a closer look at these leading climate change stocks.
1. Tesla
NASDAQ: TSLA
Key Data Points
Tesla (TSLA -0.04%) 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.
2. NextEra Energy
NYSE: NEE
Key Data Points
NextEra Energy (NEE -0.31%) 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
NYSE: BEPC
Key Data Points
4. Constellation Energy
NYSE: GEV
Key Data Points
GE Vernova (GEV -0.59%) 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).
Related investing topics
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.
- 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.
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.
- Search for the stock: Enter the ticker or company name 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.
Leading the charge to battle climate change
Dire warnings about the catastrophic impact of climate change are worrisome. However, they've spurred governments and other institutions to get more serious about taking 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 climate change stocks should benefit from continued investment in the sector. That should help make the world a better place over the long term while creating value for shareholders in the process.
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