Socially Responsible Investing In The Environment

July 29, 2010 Leave a Comment

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.

Nowadays, the two ideas are combining into a financial area called socially responsible investing. And both investors and mutual fund managers are figuring out that this new idea can be very rewarding, as well as do some good for the environment and society.

“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.

The idea of selectively choosing stocks for social reasons dates back to the early 1900s, Guthrie said, when church members banded together and refused to invest in tobacco or alcohol companies. The trend continued with investors dodging corporations involved in the Vietnam War, he added, and most recently revolved around companies investing in South Africa.

But growth in this form of selective investing has skyrocketed during the past couple of years as more and more individuals and corporations have moved social and environmental consciousness into the mainstream of their investments. And this impact is being felt worldwide.

With help from stockholders, says Rob Kruger, vice president of portfolio management at Progressive Asset Management, business practices concerning the environment are beginning to change, While the issues may differ, he said companies are realizing they will suffer the consequences if they aren’t viewed as being socially responsible.

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

As part of its operation, Progressive Asset Management conducts research for socially responsible mutual funds. The firm screens companies for environmental problems or nuclear involvement — whatever issues their clients want investigated.

“As the clock ticks, companies are becoming more and more cooperative with us,” Kruger said. “A lot of them are now very anxious to talk about these social and environmental issues.”

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

He advises, “Make sure your hard-earned money is not invested in companies with little concern for the environment. Keep these things in mind when you invest and the corporations will do the same too.

Earth News Media is proud to promote global reforestation as well as help green communities with their recycling programs, waste management, water conservation and other environmental issues. Also published at Socially Responsible Investing In The Environment.

Filed Under Climate Change Tagged With Air Pollution, climate change, eco-friendly, Environment, environmental issues, Global Warming, green business, ozone depletion, Recycling, renewable energy, Wind Power

Organizations Seek Environmental Management Solutions

November 16, 2009 Leave a Comment

Environmental management is no longer something for scientists, environmentalists and politicians to debate, rather it is a theory that must be put into practice as a result of boardroom initiatives across the land. Until the latter third of the 20th century these kinds of environmental issues had been largely ignored in real terms by commerce and industry, even though it was clear that there were potentially serious repercussions down the road.

For the longest time, big business decisions were based on how much better and how much bigger we could become and driven by consumption needs. Fossil fuels were seen as the best way forward to create energy for our burgeoning needs. Sustainability was far from people’s minds and our environment was constantly ravaged as we sought to go the extra mile.

Following the introduction of the Clean Water Act and the Clean Air Act in the late 1960s, environmental management solutions became more widespread. When the International Standardization Organization introduced its ISO 14001 standard, following closely on the heels of the European Eco-management and Audit Scheme, everything took off. Now a series of criteria had been laid down and it was the right thing to do for organizations to adopt the standards and for others to see that they were doing so.

A number of other environmental management solutions exist to complement or extend the ISO 14001 standard, many of which have been introduced to smaller organizations for whom the main ISO standard may be too onerous. It is recognized that full implementation of an ISO 14001 standard may have adverse trading repercussions for smaller organizations and developing countries alike.

Environmental management solutions have been put forward by the United Nations based on a natural capital approach. This advocates using accounting reform and the adoption of the triple bottom-line philosophy, to take into account ecological and social performance in addition to traditional outputs.

Some proponents of alternative environmental management solutions advocate self-regulation as a better way to proceed rather than through enforced compliance, auditory checks and other standards. As an example, consumable and durable products would then be seen as distinct from “unsalables,” otherwise classified as toxic products.

An integrated management approach to the introduction of environmental management solutions is currently favored. All elements within an organization must be aware of their contribution to the life cycle of the business product and must be internally responsible for their impact environmentally. This is in particular focus as new legislation is discussed to reduce one of the greatest environmental hazards, emission of toxic greenhouse gases.

Environmental management solutions can form part of a wider goal to help ensure that an organization achieves sustainability. As particular focus is placed on reducing a carbon footprint, the organization must also ensure that it is environmentally efficient as a whole. Wastage at all levels will not be tolerated from a societal or economic point of view, with the twin threats of reputational harm and regulatory penalty ahead.

Daniel Stouffer has much more information about environmental management solutions and how a visit to www.verisae.com can be of use to you.

Filed Under Green Business Tagged With Air Pollution, Air Quality, energy efficiency, Environment, Global Warming, Health and Fitness

Introducing Greenhouse Laws

September 30, 2009 Leave a Comment
by Daniel Stouffer

Since the dawn of the industrial age, we have come a long way and have made significant technological moves forward in what is essentially a short period of time. Once we had discovered that the fossil fuels that we find all around us could be converted to energy and thus make our way of life that much better, we did not look back. However, 300 years later we can now see how much damage the conspicuous consumption of these fuels has caused and this has lead to the call for greenhouse laws to try and reverse the damage to our environment and to stave off the potential for significant climate change.

Little did we realize as the decades went by and as we became more and more reliant on fossil fuels for our energy, that the byproduct of energy generation, production and usage was the release of damaging gases, which in large volumes created a warming effect in the atmosphere. We now realize that we must do something to severely curtail this problem and greenhouse laws are now being introduced to cut down on emissions of greenhouse gases.

Carbon dioxide equivalent gases are the main target of greenhouse laws as these products are very dangerous. A threat exists to all forms of life on the planet, as patterns change and weather events intensify. Those who are deemed to be the largest culprits, the biggest emitters of gases will be in the crosshairs of this new legislation and they will be forced to seek alternative methods of energy production.

Significant goals have been set by the UK government when it comes to reducing carbon emissions. It is intended that they will be reduced by as much as 80% within the next 40 years. To start the ball rolling, mandatory laws will come into place in that country in 2010 and 2011, requiring the major contributors to the problem to get their house in order.

A cunning “cap and trade” scheme will effectively force large emitters of carbon gases to reduce their figures, as a consequence of a value being placed on carbon itself. The scheme is part of the greenhouse laws being introduced in Britain and once the administration sets an overall limit on the total amount of gases that are permissible, market-driven forces will take care of the rest.

The British Carbon Reduction Commitment is a major step by a government and is a realization that large emitters of carbon gases will not act sufficiently through goodwill alone. Up until this point, mandatory greenhouse laws have not been tried, but it is felt that this is the best way to address the overall climate problem.

Environmentalists and scientists have long said that we need to take a serious look at the problem of climate change, although it has only been in recent times that governments have come on board. In the 90s, the Kyoto Protocol was the first significant step in the right direction but many countries did not actively follow up on their initial enthusiasm. To make any real changes work, mandatory greenhouse laws will undoubtedly be very likely.

There is considerable pressure on the United States to take some form of leadership role. Up until this point, various excuses have been given by the US administration and while the Congress is debating its own greenhouse laws, there seems some doubt as to whether they will soon be passed into law, as seen in the UK.

About the Author:
Daniel Stouffer has much more information about greenhouse laws and how a visit to www.verisae.com will aid you.
Filed Under Global Warming Tagged With Air Pollution, Air Quality, energy efficiency, Environment, Global Warming, Health and Fitness
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