DEFINITION of 'Cleantech'

A shortened form of "clean technologies", a term used to describe an investment philosophy used by investors seeking to profit from environmentally friendly companies. Cleantech firms seek to increase performance, productivity and efficiency by minimizing negative effects on the environment.

BREAKING DOWN 'Cleantech'

Clean technology is generally used to describe companies that deal in energy, water, transportation, agriculture and manufacturing. Investment in "environmental friendly" companies has grown and there are now many funds wholly aimed at investing in these types of securities.

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