If you're thinking green capitalism is one of the most powerful environmental forces in the world, you're right on the money.
Today, surprising as it may seem, some of the world's leading financial institutions and biggest corporations are taking earth-positive actions -- not necessarily out of the kindness of their hearts, but because polluting and spewing CO2 is lousy for business, and because greener operations lead to fatter profits.
This winter, for example, hundreds of financial leaders and investors representing $20 trillion in capital flocked to a United Nations summit on climate change. They agreed to invest $10 billion in efficient, clean energy technologies over the next two years.
Where the cash flows, the world goes. But you don't need to be Warren Buffet to make a difference. Everyone can help forge changes by making simple fiscal tweaks -- in how you bank, perhaps, or where you plant your paycheck. By investing in green values, moreover, you can boost your balance without unbalancing the planet.
Here's how to cash in.
Just say no to ATM receipts.
Photo: iStockphoto
Level One: The Baby Step
Forget the ATM receipt. Americans engage in about 8 billion ATM transactions each year, making those tiny, potentially depressing estimations of your worth one of the top sources of litter on earth. If you taped together all of these slips of paper, according to Market Watch, you'd get a roll more than 2 billion feet long -- enough to circle the equator 15 times. Avoid the nightmare of this analogy by pressing the "no" button when the ATM asks if you want a receipt. If the machines spit receipts whether you want them or not, politely ask your bank to fix the problem. If it doesn't comply, consider taking your cash to greener pastures.
Increase clicks, reduce hernias.
Photo: iStockphoto
Level Two: The Next Steps
Leave no (paper) trace. Choose the electronic option to manage your bank, credit card, mutual fund, brokerage, and other financial accounts. Paying bills and getting statements online saves time, mail-related fuel costs, and mega-tons of paper (plus, it prevents those 10-pound proxy statements from giving your mail carrier a hernia). If you haven't filed your taxes yet, look into filing your return electronically -- you'll help the IRS reduce the 2 billion sheets of paper it handles each year, and cut your refund waiting time in half.
Check it out. When it comes to eco-matters, banks these days are acting less like Mr. Potter's model and more like the Bailey Building and Loan. Topping the green list are Vermont-based Chittenden Bank and Washington-based ShoreBank Pacific, both of which offer special loan programs for sustainable businesses, among other progressive options. Scores of other banks and credit unions are making green moves, too: find one and feel the love.
Seize the pay. Shift your retirement savings into one of the many socially responsible investment (SRI) funds available. These support eco-companies and shun polluters, as well as addressing other social and human-rights issues. (Even Al Gore helped start one, called Generation Investment Management.) As many as 60 percent of companies are expected to have 401k plans that include an SRI option in the next few years; if yours doesn't yet, ask your employer about adding one.
Why not put your Euros in wind power?
Photo: iStockphoto
Level Three: The Big Step
Place your bets. If you're ready to up your game, consider investing in projects that are making the world greener. You could put your money in eco-conscious local projects or in individual stocks. Or, if you're looking for big-league options, think about backing start-ups, young companies, or international businesses that are investing in clean energy like wind, solar, and biomass -- some analysts predict that such investments will see double-digit rates of return over the next decade.
Before you leap, seek wisdom from a green financial advisor or from resources like the Social Investment Forum, Investopedia, or Co-op America, among dozens of other places. And remember: green investments, like all others, can hit rough patches when the economy teeters. Past performance is no guarantee of ... well, anything whatsoever.
Resources
Green investing, info, advice, and advocacy:
Social Investment Forum
Investopedia
Social Funds
Green Money Journal
Co-op America's Financial Planning Handbook and Real Money journal
SustainableBusiness.com
Ceres
Investor Network on Climate Risk
Green financial advisors and screening tools:
KLD Research
Trillium Asset Management
Sustainable Wealth Management
First Affirmative Financial Network
Info and advice on green-tech economy and investments:
Clean Edge
The Green Skeptic
New Energy Finance
Ask Umbra on climate-skeptic teachers, low-flow toilets, and more
Tweet for the bees
Ask Umbra on her hotness, corporate gift baskets, and more
Comments
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maryruthGY Posted 9:43 am
15 Apr 2008
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beckyt Posted 1:59 am
16 Apr 2008
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igray Posted 1:18 am
17 Apr 2008
This year, 55 climate and energy related shareholder resolutions were filed with companies as part of the Global Warming Shareholder Campaign (the campaign is coordinated by Ceres and the Interfaith Center on Corporate Responsibility). Votes on resolutions are pending with Citi and Bank of America that would require the banks to halt financing of new coal plants and stop mountain top coal mining; with big box retailers such as Lowes to report to investors on its plans to increase energy efficiency; and with electric utilities such as Southern Company that would require the company to set clear GHG reduction targets.
A tracker of all the resolutions and company shareholder meetings is available at the
Investor Network for Climate Change's website.
In addition, Ceres also just published a report this week in which it reviews the proxy voting practices of the 62 largest mutual funds firms. These firms manage a staggering $19 trillion in individuals and institutional investors' assets, giving them an inordinate amount of leverage in the marketplace. Most funds, as the report shows, have a very poor voting record on climate/energy related resolutions (2/3rd of the funds actively oppose such resolutions). If you invest in mutual funds, you can see whether or not your funds are supporting the resolutions described above.
Ian Gray works with Ceres' Communications and Development teams.
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coopamerica Posted 2:37 am
22 Apr 2008
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invest guy Posted 11:16 am
05 Aug 2008
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EcoConnoisseur Posted 4:05 pm
01 Nov 2008
The Eco Investment Club has hosted several high impact meetings such as: "The Economic State of Green Building" with Guest Speaker Harvey Bernstein, Vice President of Industry Analytics, Alliances and Strategic Initiatives for McGraw-Hill Construction and Hosted by Citi Smith Barney's Bruce Kahn, and the First Annual "Green Leaders Week", which was a week-long buffet of events for investors, who were interested in getting face-to-face time with the Green Business Leaders of Southern California. The events of this highly successful week were designed to give Accredited and Institutional Investors, who were interested in getting a first-hand look inside the minds of Cleantech leaders, the opportunity to witness operations of some of the fastest growing companies by attending a series of "open houses", starting with Envirepel Energy, Inc., a clean energy (BioMass) company in Vista, CA.
On Nov. 5th, a panel discussion will be held to provide some direction to Eco Investors and the panelists include:
Glenn Croston, Ph.D.
Author of "75 Green Businesses". Glenn Croston is committed to helping entrepreneurs build and grow profitable businesses that solve environmental challenges. Writing for Fast Company, Entrepreneur, TheStreet.com, Renewable Energy Weekly and other outlets, he highlights opportunities for small business owners and entrepreneurs to build businesses that create a brighter, greener future for us all.
Jan P. Schalkwijk, CFA
Principal and Founder of JPS Global Investments, a San Diego-based investment advisor, focusing on sustainable investing. It is JPS Global's belief that one does not have to sacrifice return potential by adding environmental and social criteria to the investment process. As a long-term investor, JPS Global believes that companies with sustainable business practices will ultimately outperform those that have unsustainable business models. As such, sustainable investing has financial and environmental/societal rewards, which are both paramount to our clients' future.
Oren Jaffe, Sustainability Expert
Co-Founder of EcoTuesday.com, a Sustainable Business Leaders networking forum based in San Francisco, California, and a Principal at BlueMap Inc., an environmental consulting firm that specializes in quantifying sustainability decisions by helping organizations lower their environmental impact while concurrently saving them time and money. Oren's sustainable business experience includes working for Bureau Veritas (BV) Consumer Products Services, a multi-billion dollar global risk management, health & safety, environmental compliance, and social auditing corporation, where he managed the social compliance division helping Fortune 500 clients more effectively and profitably build global sustainable supply chain programs. Oren was also a founding member of the corporate sustainability development team at BV.
Dave Iverson, Economist
A Social Scientist, Economist, and Environmental Activist. Dave has been working in forest management and public lands management all his adult life. For the past 29 years, Dave worked for the US Forest Service (retired 11/30/07), dealing with land management and public policy played out at the confluence of complex, adaptive natural systems and complex, adaptive, and politically wicked social systems. Before that he also did a short stint with Weyerhaeuser Corporation. Dave is a founding board member for Forest Service Employees for Environmental Ethics (FSEEE) and has played a minor role in the genesis of Public Employees For Environmental Responsibility (PEER).
To learn more and meet real Eco Investors, successful Ecopreneurs, and Green Business Leaders from around the world... Visit http://www.ecoinvestmentclub.com
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Lisa Payday Posted 6:48 pm
01 Dec 2008
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