5 ways to invest in the greener good

The stock market may not be at its best these days, but nevertheless, it’s time to uproot our portfolios and start planting our hard-earned dollars in businesses that are working in the right direction: toward sustainability. If we focus our finances on companies we believe in, we can feel good about helping to grow a greener future, and we might even pocket some “green” in the process. It doesn’t matter how much you have to invest, what counts is conscience — the drive to do better for our planet, for our kids and for ourselves. We can do it individually or we can pool our energies with family, friends and community. Consider it an investment in hope. When we put our money where our hearts are, we simply can’t go wrong. The catch phrase for investing with the greater good in mind is “socially responsible investing,” SRI for short. SRI encourages corporations to improve their practices on environmental, social and governance issues. According to the Social Investment Forum (www.socialinvest.org), nearly one out of every nine dollars under professional management in the U.S. today is involved in socially responsible investing, and that percentage is no doubt on the rise. The fastest growing area of SRI is community investing. Over the past decade, community investing has grown over 540 percent! The Forum’s “1% in Community” campaign encourages all investors to direct at least 1 percent of their investments toward serving communities that lack affordable housing, childcare, health care and jobs. You can learn more about how community investing works at www.communityinvest.org. And whether you’re interested in stocks, mutual funds or exchange-traded funds, here are five more ways to invest in your ideals. Corporations with a Conscience The simplest sustainable investment option is to support companies you feel comfortable with. You may have a list forming in your mind already, but if you need inspiration, browse Pristine Planet (www.pristineplanet.com), an online super-mall of socially responsible retailers. Another resource is the National Green Pages (www.coopamerica.org/pubs/greenpages), a directory listing nearly 3,000 businesses that have made commitments to sustainable, socially just principles. Green Energy Between oil price hikes and the explosion of energy consumption in developing countries, more people are banking on the promise of greener energy technology. Options include biofuels (fuels derived from recently harvested plant material instead of ancient plant material like coal and oil), solar, wind, water and hydrogen technologies. The science behind this may seem overwhelming, but there is a great breakdown of the basics at Mahalo (www.mahalo.com/How_to_Invest_in_Green_Energy). From there, head to RenewableEnergyWorld.com for the nitty-gritty on the green energy industry, including an index of green companies. Furthermore, The Global Renewable Energy Stock Directory (www.investorideas.com) contains an extensive categorized list of green energy stocks. Close to Home There’s no more tangible way to invest than to support a local business you love. Not only are you making a difference in your own community, you’re also able to see the impact of your investment firsthand. Microloans Microfinance is a new concept in investing that helps people make small loans (usually less than $200) to the working poor in developing countries. The loans are used to establish or expand small businesses, and you can make a low-risk return of 2 to 3 percent. MicroPlace (www.microplace.com) links small investors with dozens of lenders who offer small loans to entrepreneurs in 35 countries. MicroPlace calls it “a recyclable pool of assets.” Even in today’s economy, you can make a positive impact on the world and get something back in the process. Better Banking A growing number of banks are going green by implementing waste-reduction initiatives, helping responsible companies get good terms on loans, and considering the social and environmental impacts of their investments. A few of the U.S. forerunners include The New Resource Bank (www.newresourcebank.com), Permaculture Credit Union (www.pcuonline.org), ShoreBank (www.shorebankcorp.com), Wainwright Bank (www.wainwrightbank.com) and RSF Social Finance (www.rsfsocialfinance.org).