Socially Responsible Investing With Green Funds
Investments in Sustainable Businesses, Green Stock Remain Popular
Aug 28, 2009
Green funds are mutual funds invested in environmentally sensible firms such as those that generate clean energy with wind, solar or biomass fuel sources. The term also relates to investments in enlightened companies using clean technology to reduce greenhouse gas emissions in less earth-friendly industries such as gas, oil, mining and coal.
Some mutual funds focus almost exclusively on green investing or tend to be a balance of companies with environmentally sensitive corporate ethics and firms that focus on carbon footprint reduction.
Socially Responsible Investing With Green Funds
Interest in green mutual funds as green investments is rising owing to the socially responsible nature of these personal financial decisions. Most people who choose green or ethical investing and become socially responsible investors have core beliefs that align with financial management objectives.
For example, socially responsible investors tend to seek clean technology investments of products and services that limit environmental impacts while using renewable resources. Some examples of these investments include large solar power plants and wind turbine operations.
Green Investments in Sustainable Businesses
Investments in wind turbine technology appear to be taking off, largely because of the amount of energy that is projected to be generated. According to the American Wind Energy Association, the United States will likely generate 20% of its electricity from wind energy by 2030.
Other technologies are emerging as socially responsible investments including green building materials and bioplastics, which are a form of plastics made from renewable sources such as vegetable oil, corn or pea starch.
It is also common for green funds to keep assets in community development banks or credit unions and to send clear messages of being environmentally sensitive by printing any materials on post-consumer recycled paper with soy-based inks.
Corporate Ethics Considered with Investments in Green Funds
Investors can also demonstrate socially responsible investing by placing funds directly into a renewable energy company. These investments would include firms that invest in renewable energy such as solar, water, wind and geothermal.
Less well-known renewable energy investments include firms that generate energy from landfill gas which is produced when oxygen mixes with decomposing garbage. Another type of energy investment is in the use of wood waste, which are by-products from logging operations and manufacturing, as an energy source.
Consumers are becoming more interested in green investments in a search to match environmental interests with the growth of sustainable businesses and renewable products and services. As this interest grows, it is expected that more green funds will emerge and flourish.
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