“I make myself rich by making my wants few.”

– Henry David Thoreau

 

“Try not to become a man of success, but rather try to become a man of value.”

– Albert Einstein

 

Some seem to think that if you are rich you must be destroying the planet. But if you participate in socially responsible investing (SRI), you can play a part in making better choices to protect Earth, although it does have its limits.

 

While there were people always seeking to avoid investing in companies involved in questionable activities, such as the slave trade, SRI became more common in the 1960s when people didn’t want to invest in companies that had military contracts. In the last couple decades people have avoided investing in companies associated with South Africa’s apartheid government, and also in the seriously corrupt diamond trade, and in much of the chocolate market. Presently investors are avoiding companies that invest in those that directly or indirectly are associated with slave farms in Africa; in companies that have anything to do with military contracts; in companies involved in genetic engineering of food plants; and in companies that have a large influence in factory farming, in major causes of global warming, and in destruction of the environment.

 

Because more and more people are becoming aware of global warming and war issues, there is a whole lot more money going into companies that are involved in less destructive activities. Many of the funds that focus on SRI are producing respectable long-term financial returns (but, lately, the short term investments are less desirable). One reason for this is that companies focusing on socially responsible practices are less likely to get sued, and are more likely to pay and treat their workers in a responsible manner.

 

If you have money to invest, research the growing number of financial organizations that seek to invest in such things as solar energy, organic farming, nontoxic cosmetics, industrial hemp, and vegan food companies. Look to invest in companies that donate part of their profits to environmental and wildlife protection. Move your money into a “green bank” or credit union focused on environmentally responsible investing.

 

One of the most common ways to invest is through a mutual fund. These are funds that invest in a diversified group of companies. Listed below are mutual funds that focus on companies identified as socially responsible. Your initial investment in a mutual fund may be as little as a few hundred dollars, then you agree to put a certain amount of money into the account every month. The mutual fund managers maintain the account by deciding which stocks to invest in, and when to sell them. Investing in a mutual fund instantly diversifies your money and saves on trading commissions paid when you invest in individual stocks. Be sure to investigate if the mutual fund invests in companies that are in tune with your ideas of green.

 

If you have a 401(k) retirement plan, check to see if they offer socially responsible investing options. If they do not, inquire if they are planning to start providing this option. You might help this happen by providing a list of 401(k) plans that are involved in SRI. (Check the details of your 401(k) plan to see if it is secure from being pilfered by your company or embezzled by company management. Keep an eye on quarterly statements that may detail unexplained dips in balance, changes to investments you did not authorize, and changes in investment managers. The company president may be the sole manager of the account, and able to take “loans” from the account that may never be repaid. The fidelity bond insurance may cover 10 percent or less of the plan’s assets. Annual independent audits don’t have to be done on 401(k) plans of smaller companies, so problems may take years to be discovered. You may find that other types of savings plans are more secure, and more likely to qualify as SRI.)

 

Do you have a lot of money? Invest directly in companies that are considered to be environmentally green, and then donate any profits to an organization that works to protect and preserve wild plants, land, water, and animals. Write a will that includes a gift to an environmental charity, such as organizations working to protect the forests of the planet.

 

Establishing a gift fund or a foundation can turn you into a philanthropist. Gift funds, which are offered through a limited number of mutual fund companies, are less expensive to start and maintain than foundations. Gift funds also have tax and other benefits that foundations do not.

 

Before you invest in anything, research where your money is going. Avoid investing in companies involved in weaponry, nuclear power; petroleum exploration; mining; genetic engineering of food plants; farming chemicals; factory farming; pharmaceutical drugs; the grain industry; chocolate farming that uses slaves; the fur trade; the diamond trade; vivisection, or lumber.

 

Avoid investing in U.S. government bonds, else you may be helping to fund war, nuclear bombs, and the military/industrial complex. Municipal bonds are likely a much safer investment because they are usually used to fund local citizen projects. But municipal bonds may also fund highways and power plants.

 

When you purchase stock in a company you are allowed to vote on corporate policy. In this way you can work to make a company more environmentally responsible. It’s called “shareholder activism.” It has worked in some cases, such as by getting office supply chains to start selling recycled paper.

 

There are investment funds that work to purchase into companies with histories of bad environmental policy. They do this with the goal of making the companies more environmentally friendly by changing its policies. But some funds don’t always engage in this even when they say it is their goal. If you invest in funds that claim they are working to be shareholder activists, make sure the funds stick to their word.

 

Some of the following may be helpful when seeking to invest your money in socially and environmentally responsible ways. Also, publications such as Mother Jones, Utne, and E Magazine often carry advertisements from investment companies focused on investing in environmentally friendly ways – at least more environmentally friendly than most companies.

 

http://www.AsYouSow.Org. Promotes corporate social responsibility.

 

Business Ethics Magazine, Minneapolis, MN; http://www.Business-Ethics.Com

 

Calvert Financial Group, Bethesda, MD; 800-248-0337; http://www.CalvertGroup.Com. Mutual funds.

 

Chittenden Bank, Brattleboro, VT, 800-772-3863; http://www.SociallyResponsible.Chittenden.Com

 

Citizens Funds, Portsmouth, NH; 800-223-7010; http://www.CitizensFunds.Com. Mutual funds.

 

Clean Yield, Greensboro, VT; 800-809-6439; http://www.CleanYield.Com. Asset management.

 

Coalition for Environmentally Responsible Economies, http://www.Ceres.Org

 

Domini Social Investments, Providence, RI; 800-225-3863; http://www.Domini.Com. Mutual funds.

 

Dreyfus Corporation, http://www.Dreyfus.Com. Mutual funds.

 

First Affirmative Financial Network, Colorado Springs, CO; 800-422-7284; http://www.FirstAffirmative.Com. Asset management.

 

Green Century Funds, Boston, MA; 800-934-7336; http://www.GreenCentury.Com. Mutual funds.

 

 

Green Money Journal, Santa Fe, NM; http://www.GreenMoneyJournal.Com

 

Interfaith Center on Corporate Responsibility, New York, NY; http://www.ICCR.Org

 

Investor Responsibility Research Center, Washington, DC; http://www.IRRC.Org

 

KLD Research & Analytics, Inc., Boston, MA; http://www.KLD.Com. Compiles and maintains profiles on 3,000 U.S. companies. Keeps information on global industry practices. Maintains socially responsible investing indexes.

 

Latino Community Credit Union, 219 West Main St., POB 25360; Durham, NC 27702; http://www.CoOperativaLatina.Org

 

National Green Pages of Co-Op America, 1612 K St., NW, Ste. 600, Washington, DC 20006; http://www.CoOpAmerica.Org. Contains a financial section for those interested in socially responsible investing.

 

Natural Investment Services, http://www.NaturalInvesting.Com

 

Neuberger Berman Mutual Funds, New York, NY; 800-877-9700; http://www.NB.Com

 

New Alternatives Fund, Melville, NY; 800-423-8383; http://www.NewAlternativesFund.Com. Mutual funds.

 

Parnassus Investments, San Francisco, CA; 800-999-3505; http://www.Parnassus.Com. Mutual funds.

 

Pax World Funds, New York, NY; 800-229-1172; http://www.PaxFunds.Com. Mutual funds.

 

Pension Rights Center, 202-296-3776; http://www.PensionRights.Org

 

Permaculture Credit Union, 4250 Cerrillos Rd., Santa Fe, NM 87592; 866-954-3479; http://www.PCUOnline.Org.   Offers savings accounts, various types of loans, and a Visa card.

 

Portfolio 21, Progressive Investment Management, Portland, OR; http://www.Portfolio21.Com.  Mutual funds.

 

Principle Profits, Amherst, MA; 800-972-3289; http://www.PrincipleProfits.Com. Asset management.

 

Progressive Asset Management Network, Oakland, CA; 800-786-2998; http://www.ProgressiveAssetManagment.Com

 

Progressive Investor monthly newsletter, http://www.SustainableBusiness.Com

 

Real Money bimonthly newsletter on socially responsible investing, Co-Op America; http://www.RealMoney.Com

 

Rocky Mountain Humane Investing, http://www.GreenInvestment.Com. Customized portfolios.

 

Self-Help Credit Union, Durham, NC; 800-966-SELF; http://www.Self-Help.Org

 

ShoreBank Pacific, Ilwaco, WA; 888-326-2265; http://www.Eco-Bank.Com

 

Sierra Club Mutual Funds, San Francisco, CA; 415-863-6300; http://www.SierraClubFunds.Com

 

Social Investment Forum, Washington, DC; http://www.SocialInvest.Org. Trade organization for socially responsible investing.

 

SRI World Group, Brattleboro, VT, http://www.SRIWorld.Com; and http://www.SocialFunds.Com

 

Trillium Asset Management, Boston, Boise, Durham, San Francisco; 800-548-5684; http://www.TrilliumInvest.Com

 

Winslow Green Growth Fund, Portland, ME; 888-314-9049; http://www.WinslowGreen.Com