Green Tech

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DEFINITION of 'Green Tech'

1. Technology that is considered environmentally friendly based on its production process or supply chain.

2. A means of energy production that is less harmful to the environment than more traditional ways of generating energy, such as burning fossil fuels.

Green technology is a relatively young marketplace but investor interest runs very high in response to global warming fears and the increasing scarcity of many natural resources.

BREAKING DOWN 'Green Tech'

Green tech may be a stated goal of a business segment within a large company, or the focused mission statement of a smaller startup firm. It can cover anything from recycled product packaging to longer-lasting light bulbs and alternative energy production.

Specialized investment funds known as "green funds" seek out publicly traded leaders in the green tech movement for their investment dollars. In addition, many socially conscious investors may choose to only invest in companies that are environmentally friendly or have pledged to become so.

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RELATED FAQS
  1. What are green investments?

    Green investments are traditional investment vehicles (such as stocks, exchange-traded funds and mutual funds) in which the ... Read Full Answer >>
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    The carbon trade came about in response to the Kyoto Protocol. Signed in Kyoto, Japan, by some 180 countries in December ... Read Full Answer >>
  3. What are cleantech stocks?

    Clean technology, commonly referred to as cleantech, is a term used to describe environmentally-friendly technologies that ... Read Full Answer >>
  4. What is the utility function and how is it calculated?

    In economics, utility function is an important concept that measures preferences over a set of goods and services. Utility ... Read Full Answer >>
  5. Which socially responsible retailers appeal most to ethical investors?

    Ethical investors have many reasons to consider companies in the retail sector. The sector is broad and features an abundance ... Read Full Answer >>
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