If you want to invest in companies that are both profitable and healthy for the planet, you should look no further than green stocks. These are companies that lead the charge in sustainable practices, from renewable energy and clean technology to ethical sourcing and responsible corporate governance.
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Ethical and green stocks come in many forms. Their different profiles mean that some offer higher risk-return than others, and some offer a degree of stability. The below five stocks selected by AskTraders not only tick the box in terms of providing potential returns with an ethical twist but would also complement each other if held in the same portfolio. Read on as we consider the top stocks to boost your portfolio’s eco-friendly and ethical status.
| Company | Market Cap | Dividend Yield | Revenue |
|---|---|---|---|
| First Solar | 0% | $5.2bn (FY2025) | |
| Greencoat UK Wind | 9.3% | £221.6m net cash generation (H1 2026) | |
| Clean Harbors | 0% | $6.03bn (FY2025) | |
| Brookfield Renewable Partners | 5.44% | $6.4bn (FY2025) | |
| Bloom Energy | 0% | $2.02bn (FY2025) |
How We Chose These Stocks
The companies listed above were chosen as our top environmentally friendly and ethical stocks primarily due to the fact they lead the way when it comes to green policies, products, and services. The companies contribute to promoting responsible resource utilisation, and creating a healthier planet. However, investing in ethical and green stocks should also come with the potential for profit, and each company has a solid financial performance, bringing in strong revenues.
Table of contents
First Solar (FSLR)
First Solar (NASDAQ: FSLR), the US-based solar panel manufacturer, takes a different approach to solar’s ethical case than most of its rivals. Rather than the crystalline silicon technology used across most of the industry, First Solar builds cadmium telluride (CdTe) thin-film panels, which do not rely on polysilicon. That matters because polysilicon supply chains have faced sustained scrutiny over forced labour in China’s Xinjiang region. First Solar also runs one of the industry’s longest-established module recycling programmes and manufactures the bulk of its panels in the US.
The company’s scale sets it apart from smaller green energy names. Net income for the second quarter of 2026 rose 24% to $423 million, with gross margin of 57%. First Solar’s contracted backlog stood at 45.1 gigawatts, worth $13.6 billion, with deliveries running through to 2030. Full-year 2025 net sales came in at $5.2 billion, up from $4.2 billion in 2024.
| Pros | Cons |
|---|---|
| Ethical credentials: CdTe thin-film technology avoids the polysilicon supply chain that has drawn forced-labour scrutiny elsewhere in the solar industry, and First Solar’s manufacturing base and recycling programme reinforce that positioning. | No dividend: First Solar does not pay a dividend, so any return depends entirely on the share price. |
| Contracted revenue: A 45.1 gigawatt backlog worth $13.6 billion, running to 2030, gives First Solar a degree of revenue visibility that is unusual in the sector. | Policy dependence: 2026 guidance assumes between $2.10 billion and $2.19 billion of Section 45X manufacturing tax credits, so a change to US tax policy would hit profitability directly. |
Greencoat UK Wind (UKW)
Greencoat UK Wind (LON: UKW) is the largest listed renewable infrastructure fund in the UK, holding a portfolio of British wind farms. As a London-listed investment trust, it is also the only stock on this list that UK investors can hold inside an ISA, filling a gap the rest of this list leaves for that audience.
The trust targets a 2026 dividend of 10.7p per share, up 3.4% on 2025 in line with UK inflation, its thirteenth consecutive inflation-linked increase. That represents a forward yield of 9.3%. In the first half of 2026, net cash generation reached £221.6 million, 4.9% ahead of budget on stronger wind output, giving dividend cover of 1.9 times.
| Pros | Cons |
|---|---|
| High income: A forward yield of 9.3%, underpinned by an inflation-linked dividend policy with thirteen consecutive annual increases. | Persistent discount: The shares have traded below net asset value for an extended period, and that discount has not narrowed despite an active share buyback programme. |
| Operational track record: Generation ran 4.9% ahead of budget in the first half of 2026, supporting dividend cover of 1.9 times. | Subsidy change: The Renewables Obligation, a key source of the trust’s income, moved from RPI to CPI indexation from 1 April 2026, which will slow the growth of that income going forward. |
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Clean Harbors (CLH)
This company is not only dedicated to social responsibility within its core operations but is also the organisation frequently called in to clean up other organisation’s messes. Emergency spill response and end-to-end hazardous waste management are two services it offers. Founded in 1980, Clean Harbors has a market cap of more than $8 billion and is one of the highest-profile firms in its sector. Its client base is primarily made up of Fortune 500 companies, and its track record dates back to its role in leading the clean-up effort after events such as the Deepwater Horizon explosion and the Gulf of Mexico Oil Spill of 2010.
This Massachusetts-based company operates throughout the US, Canada, Mexico, and Puerto Rico. Operating through its subsidiary, Safety-Kleen, Clean Harbors is also North America’s largest re-refiner and recycler of used oil.
| Pros | Cons |
|---|---|
| Sustainability: The company has a comprehensive sustainability program revolving around energy usage, health and safety, customer solutions, and engagement. | Insider selling: One thing for shareholders to watch is founder Alan McKim’s pattern of periodically selling shares, including a sale in 2025. Each sale has been small relative to his overall holding, but it’s worth tracking via the company’s insider-trading filings. |
| Client base: As mentioned, Clean Harbors has customers in the Fortune 500 category. However, it also has midsize and small clients that are public and private entities. Its diversified client base provides it with stable recurring sources of revenue. | |
| Scalability: The opportunity for Clean Harbors investors is all about scalability. The services the firm offers are increasingly in demand as the world’s big corporations turn green. |
Brookfield Renewable Partners (BEP)
Brookfield is a US-based renewable energy company with a global presence. Its focus, as the name implies, is on clean, green, renewable energy sources, and each year, it is responsible for 11 million metric tonnes of emissions being avoided. Brookfield has diversified its energy sources with hydroelectric dams (making up around 75% of its generating capacity), wind power (20% of capacity), and solar power (the remaining 5%).
The company is one of the largest investors in renewable energy worldwide, with over 31,000 megawatts of generating capacity – 7,830 megawatts of that capacity being US-based. The company owns 940 power-generating facilities worldwide, including 219 hydroelectric facilities.
| Pros | Cons |
|---|---|
| Diversified: Unlike many other clean energy firms, Brookfield has diversified its energy sources, reducing its potential risk. In addition, it is in a position not only to generate clean energy but also to solve the challenge facing renewables by doing so on a 24/7 basis. | Increasing competition: While BEP is a leader in its sector, competition is fierce and becoming fiercer as governments globally continue to push green policies. Competition is not a significant headwind, but it is always something to be aware of in a rapidly rising industry. |
| CSR commitment: Brookfield’s commitment to corporate social responsibility goes beyond its core business activities as well. It has a strong focus on employee well-being, health & safety, community engagement, philanthropy, transparency, and ethical governance. | |
| Dividend yield: BEP boasts a generous dividend yield. This translates to a steady stream of income for investors, particularly appealing to income-seeking individuals and retirees. |
Bloom Energy (BE)
San Jose-based renewable energy firm, Bloom Energy, delivers reliable, clean, sustainable electricity to organisations worldwide. The firm was founded in 1960 by Jim McElroy, who was working on developing hydrogen fuel cells for NASA’s Gemini project, and links to ground-breaking technologies have been maintained ever since.
The company develops, produces, and installs Bloom Energy Servers. These are power generators that use fuels from biological sources such as methane – a gas produced as a by-product of various types of waste – but recycled by Bloom into a usable energy source. Bloom servers let organisations customise energy solutions to reduce their carbon footprint and meet sustainability goals.
| Pros | Cons |
|---|---|
| Green benefits: As well as reducing carbon emissions, its technology facilitates reduced water consumption and results in lower levels of air pollution. | A long-term hold: Buyers of Bloom Energy would do well to apply some patience to their strategy to optimise trade entry points. It’s a high-risk-return proposition, but the stock offers investors the chance to make a significant financial return while investing in a green stock with an ethical edge. |
| Well-managed: Bloom is a well-run and long-established company that has a track record of being able to monetise its research and development projects. It also continues to be attractively cutting-edge in its approach. |
How to Invest in the Environmentally Friendly and Green Stocks
If you are ready to add some ethical stocks to your portfolio, you’ll need a brokerage account. Ensure it is regulated, has low fees, and is a user-friendly platform. Finding one can be a daunting task, so we’ve selected some of our favourites that tick all of these boxes to help you get started.
Best Brokers to buy Ethical Stocks:
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Take a lookIG: FCA Regulated
Take a lookIf you are ready to add some ethical stocks to your portfolio you’ll need a broker that is regulated, has low fees and a user-friendly platform. Finding one can be a daunting task, which is why we’ve selected some of our favourites that tick all of these boxes to help you get started.
Why Invest in Environmentally Friendly Stocks
Green stocks and ethical investments might take some time to realise their full potential. Some of the firms are engaged in projects that involve restructuring entire infrastructure networks or investing in long-term research projects.
However, given the long-term potential of the sector and the investment and effort being made to push environmentally friendly policies worldwide, investing in these types of stocks means you are putting cash into a sector with strong growth potential. Consumer sentiment has also moved, which means demand for cleaner energy should continue to grow. The long-term potential of environmentally friendly stocks means they are best suited for buy-and-hold investors who have a longer investment timeframe.
What to Know Before Investing in Ethical Stocks
Selecting the best green stock is made more difficult by the fact that big and small corporations around the world are getting on board with the ethical investment program. That means investment decisions need to factor in the relative appeal of new start-up operations compared to established firms, which are embracing the need for change.
Ethical investing can be risky: Investing in green stocks does involve something of a ‘feel good’ element. But as with all investments, any decision needs to factor in likely risk-return, and there are reasons why ethical investing might be a bumpy ride at times.
Financial performance: Don’t neglect traditional financial analysis. Make sure to research companies with solid financials, strong growth potential, and competitive advantages.
Government subsidies and tax incentives: The main threat to the sector is that government subsidies and tax incentives that are being used to prime the sector will, over time, be phased out. Assess how that will impact the financials of the company you are researching.
Macroeconomic factors: There are also macro factors such as recessions, inflation, and energy prices that can throw off even the best-made plans, and investors should assess the current economic climate before parting with their hard-earned cash.
With all of the factors above in mind, our shortlist of environmentally friendly stocks and ethical investments has been created to include stocks with profiles that might smooth out returns and boost the environmental and ethical nature of your portfolio.
