Investing in the Environment

by: EarthNewsMedia
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For a long time, money used for good will was called charity, while money used to make more money was called investing. No more.

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.

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.

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 operation, Progressive Asset Management conducts research for socially responsible mutual funds. The firm screens companies for environmental problems or nuclear involvement -- whatever issues their clients want investigated.

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

"Make sure your hard-earned capital is not invested in companies with little concern for the environment," he advises. "Be sure to keep these things in mind when you invest and companies will too."

About the Author

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