SUSTAINABLE
INVESTING
In our capitalist economy, corporations big and small have a huge impact on our lives and on the planet. It can be said that the future essentially balances on the choices of these corporations and their employees. Sustainable investing can allow you to support those companies that are aligned with your values and your vision for our children's future.
Since the 1970's sustainable investing has grown through three developmental phases. In each of these phases investors began demanding more of companies through shareholder activism and many companies have responded.
Phase I called for "Do No Harm." This approach had investors staying away from harmful products like tobacco and alcohol and defense spending.
Phase II was "Doing Well by Doing Good." During this phase, many companies worked on recycling programs, energy efficiency, decreasing their contribution to pollution, etc.
We are now in Phase III of sustainable business initiatives. Now, "green" seems to be the "in" thing to do! Companies are now garnering much goodwill from their sustainable practices. They are actively striving to be proactive in providing products that support the environment, are healthy for humanity and are using practices that decrease their carbon footprint. Supporting these companies by using their products and services is obvious, but ensuring that our investments are also supporting them can multiply our impact.
Even small accounts make a big difference. In 2005, total U.S. funds underwriting socially responsible businesses mounted to $2.29 trillion. And, the amount continues to grow. Sustainable and socially responsible companies are now seeing that being proactive in these areas is actually increasing their bottom line.