With the ecology of the planet being damaged systematically and efficiently by unsound business practices, it makes sense to look for investment companies that do more for the earth. Fortunately, many environmental investing opportunities already exist for potential investors. Unfortunately, many of these funds engage in “green-washing” and are not as environmentally friendly as their advertising makes them seem.
Green funds can invest in everything from green wind power farms to not so green transnational oil corporations. In theory, a green fund is supposed to invest in environmentally and socially responsible companies such as ones that promote sustainable living and develop alternative energy sources.
However, not all green funds are alike and some of them are actually not environmentally conscious at all.
If you are looking into green funds that invest in many different stocks, you may have to call the fund manager to get a detailed response about all the different types of companies that they invest in. Some large green funds invest in pharmaceutical companies and oil companies, which may not be green. These companies are able to sneak into the mutual fund because of the fund’s screening practices; some funds have strict screening criteria, while others will allow virtually any type of company into the mix. In the latter case, the fund is often engaging in “green-washing.”
If you are investing in various companies instead of a large mutual fund, then the only way to make sure you are personally investing in environmentally responsible companies is to do your research. If you choose to invest in stocks from individual companies, research those companies and make sure, to the best of your ability, that they are environmentally conscious and earth friendly.
Peruse blogs, read journal articles, and search for any newspaper articles that give you more information. Since there are large, manipulative advertising campaigns run by many companies, most companies seem, i.e. appear, to be environmentally and socially responsible. It is up to you to tear through the moral facade that advertisers and marketers are able to erect and discover the companies that are actually helping the environment.
Remember that it is important to invest in green companies and environmentally responsible investment funds; if we, as a society and as individuals, do not, then the other, less environmentally responsible companies will continue to lure investors, increase profits, expand their companies, and generally do more damage to the earth.
There currently is a silent war for the health of the environment; who we support through our investments decides who will win the war: the environmentally conscious companies or the companies that only care about their profits.
Since it is crucial to our generation and future generations that the planetary ecosystem be protected at all costs, it is important that, should you decide to invest, you invest in environmentally responsible funds and companies. If you do not, then the war on the environment will be won by the companies that reap profits through eco-damage. If they win, we all lose.