Investing in the Environment

by: EarthNewsMedia
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For many years, money that was used for good will was called charity and money used to make more money was called investing. Not 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.

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

The idea of selectively choosing stocks for social reasons dates back to the early 1900s, Guthrie said, when church members banded together and refused to invest in tobacco or alcohol companies. The trend continued with investors dodging corporations involved in the Vietnam War, he added, and most recently revolved around companies investing in South Africa.

So, yes, growth in this type of investing has ballooned during the past few years as more and more investors have moved social consciousness into the main street of investing. And the impact of this trend is being felt.

Rob Kruger, vice president of portfolio management at Progressive Asset Management says that with help from stockholders, business practices concerning the environment are starting to change. He said while the issues may vary, companies are realizing they will suffer if they aren't viewed as being socially and environmentally responsible.

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

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 cooperative if not anxious to talk about how they are more socially and environmentally responsible.

Guthrie agrees that business practices are changing and says American companies are aware of shareholders who are concerned with the environment.

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."

About the Author

Earth News Media is a pioneer in the area of environmental news and information. Earth News was founded in 1991 as an international news service. Its efforts have led to a syndicated environmental blog and news column being published worldwide.  

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