Investing in the Environment

Written by Earth News Media

Thursday, 17 July 2008

For a very long time, money used for good will was called charity, while money used to earn more money was called investing. That's not the case anymore.

Today, the two ideas are coming together in a financial avenue called socially responsible investing. And both investors and mutual fund operators are learning that this new idea can be profitable, and do some good for the environment and society at the same time.

Bob Guthrie, an investment broker with A.G. Edwards in Burlington, Vt. says, "Socially responsible investing means you don't have to compromise your own personal beliefs to make money on Wall Street - whatever those beliefs are."

Guthrie says that the idea of selectively choosing stocks for social reasons dates back to the early 1900's. That's when church members grouped together and refused to invest in tobacco or alcohol companies. He adds that the trend continued with investors ignoring corporations involved in the Vietnam War and those companies investing in South Africa.

But growth in this form of selective investing has skyrocketed during the past couple of years as more and more individuals and corporations have moved social and environmental consciousness into the mainstream of their investments. And this impact is being felt worldwide.

With help from stockholders, says Rob Kruger, vice president of portfolio management at Progressive Asset Management, business practices concerning the environment are beginning to change, While the issues may differ, he said companies are realizing they will suffer the consequences if they aren't viewed as being socially responsible.

"As this investing community continues to grow, a lot of proposals are being put forward by investors at annual shareholder meetings," Kruger said. "A whole variety of issues and activities is now being addressed."

As part of its operational procedures, Progressive Asset Management conducts research for eco-friendly and socially responsible mutual funds. The firm filters out companies for environmental problems or nuclear involvement or whatever issues their clients are concerned about.

"As the clock ticks, companies are becoming more and more cooperative with us," Kruger said. "A lot of them are now very anxious to talk about these social and environmental issues."

Guthrie agrees that American corporations and business practices are aware of stockholders who are very concerned with social and environmental responsibility.

He advises, "Make sure your hard-earned money is not invested in companies with little concern for the environment. Keep these things in mind when you invest and the corporations will do the same too.

Authors Bio:

Earth News Media and its founders have written and published several books and news columns focused on environmental issues. Earth News Media features global warming articles, acid rain, air and water pollution, climate change and more.

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