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New financial report highlights major sector that 'continue[s] to fall behind': 'Investors should take note'

Global policy and market trends are shifting.

Global policy and market trends are shifting.

Photo Credit: iStock

When it comes to saving the planet, it turns out one of our most powerful tools isn't a gadget or a government policy — it's our money. More specifically, it's how we choose to invest it. 

A new financial report is shedding light on just how much influence everyday investors can have and how weak some sectors are. Dirty fuel companies continue to fall behind, and clean energy ones are gaining ground.

According to a new analysis from the Institute for Energy Economics and Financial Analysis, dirty fuel stocks have not only had a rough past couple of years, but they've consistently underperformed over the last decade. While the world shifts to cleaner, more efficient energy sources, dirty fuel companies are falling behind in terms of returns. 

The dirty fuel stocks on the S&P 500 yielded a 5.72% return last year, while the full index itself saw a 25.02% return. 

In contrast, many clean energy companies continue to show strong long-term growth and resilience. Global policy and market trends are shifting toward renewables and energy efficiency. This confirms what climate-conscious investors have suspec

ted for years. A clean economy isn't just a moral choice — it's becoming the smartest financial one. And now, there's data to back it up.

"Traditional fossil fuel business model faces structural risks in a decarbonizing world," said IEEFA energy finance analyst and co-author of the report Connor Chung. "Investors should take note that the industry has spent much of the last decade dragging down long-term investment portfolios."

The findings underscore a growing truth — dirty fuels are becoming financial dead weight. At the same time, clean energy continues to fuel jobs, boost local economies, and support long-term growth.

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Harnessing investments is one of the most effective ways to influence climate outcomes — and there are plenty of resources that make it easier than ever. Check out The Cool Down's Guide pages on investing in clean economy stocks and upgrading your 401(k).

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