\r\n","image":{"@type":"ImageObject","url":"http://g.foolcdn.com/avatar/1666064245/large.ashx","height":"80","width":"80"}},"about":[{"@type":"Corporation","tickerSymbol":"NASDAQ WMT"},{"@type":"Corporation","tickerSymbol":"NYSE NRG"}],"publisher":{"@type":"Organization","@id":"https://www.fool.com/","name":"The Motley Fool","url":"https://www.fool.com/","logo":{"@type":"ImageObject","url":"https://g.foolcdn.com/misc-assets/logo-tmf-primary-7-magenta-royalpurple.svg","width":"157","height":"43"},"brand":"The Motley Fool","contactPoint":{"@type":"ContactPoint","contactType":"Media Inquiries","email":"[email protected]"},"publishingPrinciples":"https://www.fool.com/about/","sameAs":["https://www.fool.com/about/","https://en.wikipedia.org/wiki/The_Motley_Fool","https://www.wikidata.org/wiki/Q7752442","https://www.linkedin.com/company/the-motley-fool","https://www.facebook.com/themotleyfool/","https://x.com/themotleyfool","https://www.instagram.com/themotleyfoolofficial/","https://www.youtube.com/channel/UCpRQuynBX9Qy9tPrcswpPag","https://www.pinterest.com/themotleyfool/","https://www.tiktok.com/@themotleyfoolofficial","https://www.google.com/search?kgmid=/m/0578mk"]},"description":"Investors should look for two traits when considering how businesses are confronting the risk of climate change.","image":{"@type":"ImageObject","height":"630","width":"1200"}}\r\n","image":{"@type":"ImageObject","url":"http://g.foolcdn.com/avatar/1666064245/large.ashx","height":"80","width":"80"}},"inLanguage":"en-US"}

Consider Climate Change When Selecting Stocks

Investors should look for two traits when considering how businesses are confronting the risk of climate change.

By Sara Murphy – Jul 11, 2013 at 11:00AM EST

Our warming planet poses an increasing risk to business operations, and some companies are managing better than others. For instance, NRG Energy (NRG +1.25%) and some other utilities are rethinking the entire electrical grid in the wake of repeated storm destruction. Wal-Mart (WMT +0.11%) is pursuing new efficiency mechanisms to make its supply chain more resilient to shocks.

John Vechey of PopCap Games recently joined The Motley Fool for a climate change summit. His first panel guests were Dr. Rachel Cleetus and Dr. Joe Casola. Dr. Cleetus is a climate economist with the Union of Concerned Scientists, and Dr. Casola is program director for science and impacts at the Center for Climate and Energy Solutions. They both offer insights in this video into what investors should look for when considering how a particular company is coping with climate change and responding to risk in today's changing world.

Read Next

Aug 19, 2024 •By James Brumley

These Were the 5 Biggest Companies in 1994, and Here Are the 5 Biggest Companies Now

Sep 21, 2021 •By Chris Hill

Will the Next Big AI Stocks Be in Deliveries?

Mar 19, 2020 •By Neha Chamaria

Sherwin-Williams Defies Coronavirus Fears, Maintains Q1 2020 Outlook

Aug 23, 2019 •By Beth McKenna

The "Inverted Yield Curve" Is Signaling a Recession; These Stocks Could Weather the Storm

Apr 9, 2019 •By Reuben Gregg Brewer

3 Dividend Stocks Perfect for Retirees

Mar 13, 2019 •By Tyler Crowe

3 Stocks Value Investors Should Love

About the Author

Sara began her career working for NGOs in the international development and disaster response fields. She had an epiphany one day, and thought she had invented the concept of sustainable investing. While initially disappointed that others had thought of this long ago, she was fortunate to be able to enter the humming field of Sustainable and Responsible Investment (SRI). With the exception of a few years as an environmental consultant, she has never looked back. Her first job in the SRI field was with a Washington, DC-based research firm, where she conducted social and environmental analysis of publicly traded companies. From there, Sara moved to Europe to work as a senior sustainability analyst for a large SRI fund management team with 8 billion Euros under management. Now back in Washington, DC, Sara is a freelance writer and analyst primarily covering sustainability issues for investors and consumers. Sara holds a Bachelor of Arts degree from the University of Virginia in French and Spanish, and a Master of Arts degree from George Mason University in Economics. Sara grew up in Asia and Africa, and observed first hand the direct and indirect impact companies' activities have on people and the environment, both positive and negative. She believes that it is entirely possible for all stakeholders to benefit and profit from companies' ingenuity and innovation. Follow @SMurphSmiles

TMFSMurph

Stocks Mentioned

Walmart

NASDAQ: WMT

$123.54

(+0.04%)+$0.05

NRG Energy

NYSE: NRG

$150.48

(+1.25%)+$1.85

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.