23 Feb Environmentally Responsible Investing
Environment investment is both beneficial for the planet and businesses.
Installation of solar energy for running our appliances and eco-friendly bulbs or buying a hybrid or electric car is not enough to call you “green” these days. Your investment dollars also affect the environment. Respectful investing means putting your investment money in the hands of stocks, mutual funds and companies with their eye on the best green business practices. Investing in green companies puts your money where your mouth is, matching your ideals for a cleaner future with your future investments.
When people invest in companies that do their best to reduce pollution, reduce their impact on air and water, are working to curb global warming and support the creation and maintenance of parks and wildlife, you take money from ecologically irresponsible corporations and mutual funds and put it in the hands of socially responsible entities. But socially responsible investing is investing in the right kinds of funds – taking action as a shareholder to convince the company to change their harmful policies is another way to invest with a sense of corporate social responsibility. Shareholders may have a significant impact on company policies, using their influence to pressure the company to develop plans that lead to safer, healthier and cleaner future for everyone.
Shares, mutual funds and corporations answer to their investors. But stocks and mutual funds are far from your only choice as an environmentally responsible investor. There are a handful of exchange-traded funds in which you can invest. If you have decided to invest in green businesses, you’ve already committed to the most difficult part of the process. Searching for and finding companies and funds worthy of your investment is as easy as asking a few simple questions about an investment: what does this company do to reduce pollution and global warming? Does this company use child labour? Do they deal with water conservation? Do they test on animals? Look for companies that make solar panels, geothermal tools and those who use these devices in their daily activities. If you can find a company that meets all these requirements, you can be sure that your investment is truly environmentally and socially responsible.
Environmental investment is not just a good idea for the future of the planet, it just makes sense for the future of your investment capital. Energy is changing, moving from a dependence on oil and coal and towards alternative energy sources. Alternative energy is a growing field and investing in growing industries makes financial sense. Do not expect an immediate return but do invest in businesses you believe in. Invest in technology that looks to the future without going so far off-grid that it won’t attract the attention of manufacturers or contemporary research and development.
Remember that investments in green technologies should be considered as long-term investments. Like any new field, you probably won’t see a return on your investment in the short term. This is where your commitment to your investment and your commitment to the earth co-mingle. We can’t save the planet overnight, and you can’t a socially responsible investment plan to flourish in a few months.