|
 Is it possible to help the environment by investing in companies that are “Green” and still make good returns? It’s called “Green” investing. But going Green is hardly a new idea.
Earth Day, an international day of celebrating Mother Earth in all her glory, with a focus on ecology, started in 1970 and has steadily grown in popularity. Though recycling has been a mainstay of the ecology movement for decades, Green thinking has received a re-birth of sorts lately.
Global warming has gotten quite a lot of attention politically and in the press and the extremely well received 2006 Academy Awarding winning documentary “An Inconvenient Truth” with accompanying book by Al Gore, brought the “Green” movement into sharper focus for many.
Everywhere you look now, people are focused on being Green, going Green, and working towards a Greener world. The word “Green” has come to mean anything from eschewing those plastic shopping bags to taking shorter showers. NBC started a “Green is Universal” campaign in November 2007, highlighting on its nightly line-up of shows, ways in which viewers can reduce, reuse and recycle on a daily basis. There are also hundreds of organizations, websites and blogs dedicated to a Greener world. “Going Green” is officially mainstream. But what about investing Green? There are several firms that are focused on helping investors get involved with companies with good EPA track records, who aren’t, for example, stripping the rain forests, and whose environmental footprint is as small as possible. Trillium Asset Management Co. is one of the country’s oldest ecologically focused investment firms. They are dedicated to the idea that “active investing can offer good returns to the investor, while also promoting social and economic justice.” Another Green-centric firm is Winslow Management Company. Check with your advisor to find other companies that have Green funds or specialize in environmentally conscious investing. “Green investing isn’t going to solve all the world’s problems,” said Eric Becker, a vice president at Trillium who co-manages Green Century in an interview with Salon, “but if you’re concerned about the environment, then it’s critical that your investment dollars reflect that. If you’re investing in companies that continue the cycle of pollution, that’s a waste of your resources.”Companies are not trying to reduce their environmental impact just because of a fad; many of the steps taken to treat the environment better are simply good business. For example, some retailers have has put doors on their coolers to use less energy and opened up the ceilings of their stores to allow in more ambient light, using less electricity.
The affluent are in a position to make an impact on Green investing by supporting environmentally responsible companies. By choosing responsible companies who are working towards an ecologically sustainable world, while still bringing in high returns, the affluent may help engender a shift in how all investors choose companies and force more companies to examine how their business practices affect the environment for future generations.
|
High Net Worth Advisor Insights Newsletter April 2008
