Give Green Investing the Green Light

If you’ve bought all the squiggly light bulbs and reusable hemp grocery bags you can handle, but you’re still looking for ways to “go green,” try taking a look at your investment portfolio. Screening for eco-friendly companies is becoming more common as the socially responsible investing phenomenon continues to gather steam.

Socially responsible investing refers to the practice of investing in financially strong companies that also make positive contributions to society in terms of environmental, social, and governance issues. For example, Dell (Nasdaq: DELL  ) offers its customers free equipment recycling and has been influential in the passage of legislation mandating recycling programs in several states.

Open-source leader Red Hat (NYSE: RHT  ) was recently recognized by Network World as having a “greener” operating system versus the competition, based on its lower power consumption. In addition to a more efficient operating system, the company’s virtualization technology can help customers reduce the amount of energy needed to power and cool data centers by enabling server consolidation.

Chip manufacturer Intel (Nasdaq: INTC  ) has been addressing climate change since 1993 through its efforts to reduce ozone-depleting substances, as well as its advocacy of environmental initiatives in the semiconductor industry. Earlier this year, the EPA recognized Intel’s support of renewable energy, placing the company at the top of its Fortune 500 Green Power Purchasers list.

While there is certainly a “feel-good” element to engaging in environmentally friendly business practices, there is also a more practical reason for publicly traded companies to follow the lead of Dell, Red Hat, and Intel: money. Lots of it.

According to Social Investment Forum, in 2007, more than $2.7 trillion was invested using socially responsible criteria. That’s more than 10% of all assets professionally managed in the U.S. With invested assets in socially responsible programs increasing by 27% compounded annually over the last six years, companies can’t afford to ignore this large and growing source of capital.

More Foolishness:

Intel and Dell are Motley Fool Inside Value recommendations. Try any of our Foolish newsletters today, free for 30 days.

Fool contributor Linda Brewton does not own shares in any of the companies mentioned. The Fool has a disclosure policy.


Read/Post Comments (1) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 07, 2008, at 8:57 PM, aeosfool wrote:

    Good thing Dell encourages recycling as after you buy one you end up wanting to trash it within a year.

    Apple is a better environmental choice as they also offer free recycling of electronics and are converting all their displays to mercury free LED. Better yet, Apple makes computers and other electronics with better quality that last longer so they don't need to be recycled if they are still in use. There are an amazing number of original imacs from 10 years ago and Apple II computers from twenty years ago still in use.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 679564, ~/Articles/ArticleHandler.aspx, 11/24/2014 3:14:16 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement