In this article I’ll tell you about Small Investors Making A Big Difference. Quite similar to the success of the Socially Responsible Investing (SRI), environmentally-conscious investing has now become a potent tool for environmental protection and conservation. While SRI has been instrumental in changing corporate policy on social, political and ethical issues, environmentally-conscious investing focuses more on issues like global warming, carbon footprints, energy efficiency, renewable sources of energy and clean air and water.
Championing the cause of environmental conservation, small investors the world over now share a common goal. Collectively, they are playing an important role in influencing corporate policy on key environmental issues that require urgent attention.
Shareholder activism may be an old concept, but in relation to environmentally-conscious investing, it is probably the first time that shareholders are displaying a keenness for environment conservation. Earlier, shareholder activism was mostly about organizational issues such as mergers and acquisitions, profitability, change in management, and efforts made for reducing corruption and misappropriation of investor funds.
Environmentally-conscious investing also results in profits for shareholders, but the difference here is that their investments are not used for activities that may harm the environment. With environmentally-conscious investing, shareholders are thus not only deriving financial gains, but are also ensuring that they make planet Earth a better place to live for future generations.
Over the years, environmentally-conscious investing has made a huge impact on corporate behavior. The collective strength of individual investors and investment firms is virtually forcing businesses to do a rethink of their environment related policies and procedures. Businesses, big and small, are today being asked to disclose information about their CO2 emission, recycling initiatives, energy efficiency and donations to individuals or organizations involved in activities that may be harmful to the environment.
Their activities are being tracked on a continuous basis and if found lacking, investors are either asking businesses to mend their ways or simply walking out with their investments. Since, this is usually done though a resolution involving thousands of investors, most businesses usually comply rather than take the risk of losing the investors’ money.
Initially, it was just a trickle, but today environmentally-conscious investing generates many million dollars in investment funds. The majority of it is generated by individual investors, but a significant percentage also comes from mutual fund investments. There are many mutual funds that cater specifically to environmentally-conscious investing.
These mutual funds target businesses that may have a verifiable record of supporting and promoting the cause environmental protection and conservation. Since funding has become a scarce commodity, most businesses are trying their best to meet the expectations of the environmentally-conscious investment community.
If you are a small investor and are thinking about environmentally-conscious investing, it is advisable that you start with mutual funds. You can do it on your own also, but don’t forget that it will require you to spend plenty of time on researching investment avenues and finding the right ones.
Also, there will be huge risks involved, something that might make it difficult for you to achieve your financial goals. So, the right thing to do would be to start with mutual funds. Then, gradually, as you gain more experience, you can start out on your own and continue to contribute to the cause of environment protection through environmentally-conscious investing.