Investments

How can a person trying to lead an “eco-friendly” lifestyle, invest in companies that operate under the same philosophy?  Of course, you KNEW there would be “green investments!”  Yes, you can choose to support only businesses that operate under conditions that you consider to be environmentally safe. 

There are many choices here and it requires some research by the individual investor or his broker.  Everyone has an opinion as to the degree to which they feel there is a balance between damage to the environment in exchange for producing certain consumer goods.  For instance, if a company is following environmentally responsible standards in their manufacturing process, but they are producing goods that the investor feels are damaging over the long term, does he/she want to invest in that company?  These are decisions to be made by the investor, before committing his/her money.

The variety of offerings has become much more extensive than it was only five years ago.  The popularity of ETFs (Exchange Traded Funds) has grown rapidly.  These vehicles are, to put it simply, mutual funds trading as individual stocks.  They are as liquid as an individual company stock, but may incorporate many companies in the same business, such as solar companies or energy companies.  It allows a person to be more diversified within a sector.

Now, we add the layer of environmentally-friendly companies to the mix!  There are mutual funds that exclude cigarette manufacturers or other companies that certain investors may not want among their investments, although they want a mutual fund that includes a variety of companies to provide diversification.

There is also research to be found on individual companies to inform investors as to the commitment they have made to operate in an environmentally responsible manner.  This allows the investor to purchase a company’s stock knowing that they agree with his ecological standards.

As you can see, it is possible for the individual investor to achieve a portfolio that is in line with his “green” philosophy, but it requires some investigation and decision-making in order for it to be successful!

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• AHA-All of the AHA investment funds are tobacco free and allways have been. They offer a variety of fund styles-from fixed income to equity and socially responsible portfolios. You don't allow smoking in your house so why would you allow it in your investments?

• Investopedia-A Forbes digital company, this site provides up to the minute information on green investment.

• Claymore-The Claymore/MAC Global Solar Energy Index ETF is the first exchange traded fund (ETF) to provide investors access to the solar industry.

• Shorebank -ShoreBank invests in environmentally sound practices like energy efficiency, waste reduction and the creation of green collar jobs.

• Portfolio 21-Portfolio 21 invests in companies designing ecologically superior products, using renewable energy, and developing efficient production methods. Portfolio 21 companies seek to prosper in the 21st Century by recognizing environmental sustainability as a fundamental human challenge and a tremendous business opportunity.