What are cleantech stocks?

By Investopedia Staff AAA
A:

Clean technology, commonly referred to as cleantech, is a term used to describe environmentally-friendly technologies that work to improve a company's operations, performance, productivity and efficiency while lowering their costs, energy consumption, inputs, waste or pollution. Stocks issued by cleantech companies typically attract investors interested in socially conscious efforts and sustainability, while also appealing to investors seeking to gain a competitive return. Cleantech includes six types of industries: energy, water and waste water, advanced materials, energy efficiency and manufacturing, and transportation and agriculture. Energy is the largest of the six, with companies focused on solar power, wind power, hydro power, biofuels and geothermal energy.



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