Investors looking to combine sustainability with profits, according to Freedom24

With the global shift towards sustainable tourism, leading investors are increasingly focusing on stocks that combine environmental responsibility with profitability, according to a report released on Wednesday by online broker Freedom24.

The company highlighted that this trend is driven by growing political pressure for action against climate change, significant economic opportunities in green tourism, and rising consumer demand for eco-friendly travel options.

“As governments implement stricter regulations and international platforms like COP27 emphasise the urgent need for sustainable development, sectors such as rail transport, camping, eco-friendly accommodations, local tourism, and electric vehicle infrastructure are benefiting,” the company stated.

“By aligning investment strategies with these sustainable practices, investors not only support environmental goals but also tap into lucrative market opportunities,” it added.

Moreover, the company pointed out that “investors looking to capitalise on the growing trend towards sustainable tourism may find several companies attractive due to their commitment to practices and goals that make them environmentally friendly”.

In this context, Freedom24 highlighted three companies that follow this trend and will be interesting for investors in the near future.

The first one concerns the Expedia Group. The well-known online travel booking platform is actively integrating sustainability into its operations.

In addition, the company has set ambitious targets, such as achieving net zero carbon emissions by 2040.

“It also provides transparency to users by offering sustainability indicators, such as carbon emissions for each flight and the eco-certifications of hotels,” the company noted.

“Expedia’s commitment to sustainable development positions it as an attractive investment opportunity for those looking to explore the emerging tourism industry,” it added.

It also mentioned that the stock price has risen by 15.2 per cent compared to last year, while earnings for 2023 increased by 10 per cent compared to 2022, reaching $12.8 billion.

The second company mentioned by the online broker is Airbnb, the world’s leading short-term rental platform, with approximately half of all bookings of this kind. The report noted that the firm has shown a strong commitment to sustainable tourism.

It said that the platform offers a wide range of eco-friendly accommodation options that will appeal to environmentally conscious travellers.

Additionally, the company said that “Airbnb aims to achieve net zero carbon emissions by 2030, marking its commitment to reducing its environmental footprint”.

“With its innovative approach to accommodation and sustainability initiatives, Airbnb presents an attractive investment prospect for investors seeking to benefit from the eco-tourism market,” Freedom24 added.

It also pointed out that the stock price has risen by 17.5 per cent compared to last year, while earnings for 2023 increased by 18 per cent compared to 2022, reaching $9.9 billion.

The third and final entry concerns Marriott International, a global leader in the hospitality industry, which actively incorporates sustainability into its business practices.

The company, Freedom24 explained, has set an ambitious target for net zero emissions by 2050, having implemented green operational initiatives across all its units.

“Marriott’s commitment to sustainability, combined with its strong presence and global footprint, positions it as an attractive investment opportunity for investors looking to align with sustainability trends in the tourism industry,” it stated.

Moreover, the company mentioned that Marriott’s stock price has risen by 31 per cent compared to last year, while earnings for 2023 increased by approximately 14 per cent compared to 2022, reaching $23.7 billion.

George Karageorgos, head of Freedom Finance Europe in Greece, stated that “these companies are the meeting point for sustainability and the tourism industry, offering potential investment opportunities for those interested in benefiting from the growing demand for eco-friendly travel options”.

“However, investors must conduct thorough research and consider factors such as financial performance, competitive position, and broader market dynamics before making investment decisions,” he added.

“As with any investment, it is important to assess the risks and seek advice from professionals to make an informed decision,” Karageorgos concluded.