Investing in Green Businesses

For a very long time, money used for good will was called charity, while money used to earn more money was called investing. That's not the case anymore.

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," states Bob Guthrie, who is 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 type of investing has mushroomed during the past few years as more and more investors have moved social consciousness into the mainstream of investing. And the impact is being felt.

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.

"As this investing community continues to grow, a lot of proposals are being put forth by investors at annual shareholder meetings," Kruger said. "A whole range of issues and activities is now being addressed."

As part of its operational procedures, Progressive Asset Management conducts research for eco-friendly and socially responsible mutual funds. The firm filters out companies for environmental problems or nuclear involvement or whatever issues their clients are concerned about.

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 business practices are changing and says American corporations are aware of stockholders who are concerned with the environment.

"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."

Article Source: http://www.articlesfeed.com

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