Take Action: Green Investments
by Michael Graham Richard, Gatineau, Canada on 07.21.05
Before we start, I want to make it clear that I am not qualified to give financial advice, so consider this more a reminder and suggestion than anything else... So here we go: According to our surveys, our readers are, on average, highly educated and have good incomes (they are high on the Global Rich List). It should then be fairly safe to assume that many are putting their money elsewhere than under a mattress. Sadly, too few people realize that even if they lead a virtuous life and try to have a healthy personal relationship with nature, their money could be working against them if it is invested in polluting and destructive enterprises. What I recommend is that you ask your financial advisor about green and ethical funds, or if you own stocks of a polluting corporation, consider letting them know – as a shareholder – that you would like them to get a better environmental policy (or you could just sell the stock and invest the money somewhere else). Money is a powerful tool. Use it for good.
Take a look at the following websites for green investment ideas:
http://www.altenergystocks.com/
http://cleantechvc.blogspot.com/
A few years ago I started investing in Ethical Funds
http://www.ethicalfunds.com/
Their rhetoric sounds good, but they still invest in companies that engage in questionable social and environmental practices. They take a shareholder activist approach to investing, rather than the boycotting approach. I'm just not sure how I feel about that. I mean, you might get somewhere with some companies, but huge multinationals are not inclined to adopt more sustainable or responsible practices, are they?
I think a sound investment practice with dovetails with this, is to know what you're investing in. Many of us give our money to companies that are using it in ways we wouldn't approve of.
This is not just a green issue - I think knowing how a company deals with its community, whether it responds to problems by solving them or hiding them, whether they are investing in their community or bleeding it dry, whether they care about their customers. These are broader social issues, and in the long run I think they are indicators of a good investment.
Read beyond the quarterly reports!
Here's an ETF that might be of interest: Powershares Clean Energy Fund (PBW). Here's the description:
The Fund seeks investment results that correspond generally to the price and yield of an equity index called the WilderHill Clean Energy Index by investing at least 80% of its total assets in common stocks of companies engaged in the business of the advancement of cleaner energy and conservation.
There is a small company that I like, (but do your own homework before you invest!), it is headquartered in the Detroit area. They are a 40 year old compant who make flexible solar panels, NiMH batteries,(the ones in the hybrid cars), and own the basic patents in these fields. They are also working on H2 storage and other elements of the H2 economy. Their web site is at: http://www.ovonic.com/
It is still more effective to simply not buy from the least sustainable companies - try to find products and services to fit your needs as sustainably as possible.
Granted, for full disclosure, I own Whole Foods and UNFI (United Natural Foods), but not that much of either.
Anyone know of a mutual fund (as opposed to a stock) that specificially specializes in alternative energy? Yes, I know about the various green funds, but their investment objectives are broader than what I want.
I'm totally ignorant on this stuff, but I did come across the Dow Jones Sustainability Index - is anyone else familiar with this?
www.sustainability-indexes.com/
There is a pure wind play with some contracts. Western Wind Energy is WND on the Toronto Stock Exchange. There are other alleged wind companies...I've checked this one out. Check it out. I think it will be successful.