Sustainablog

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Editor’s note: Turns out we don’t just share content with Low Impact Living; we also share writers. Today’s post (by Cassie Walker) takes a look at the basics of putting your money where your values are: green and socially responsible investing. This post was originally published on Sunday, May 4, 2008.

One of the primary imperatives for being an environmentally conscious consumer is to vote with your dollars - support companies that have a positive impact on society and the environment by purchasing their products and services. In the minds of many, that concept is easy to apply to the day-to-day stuff we buy at the grocery store or retail outlets. But some folks forget that our longer term investments can speak just as loudly.

Enter Socially Responsible Investing (SRI). SRI takes into account the impact that companies have on society and the planet, and recognizes that we can factor these concerns into our investment choices. Now our decisions as investors, which used to be determined solely on corporate financial performance – perhaps based on short-term and short-sighted goals – can now be based on the whole of a company’s standing, including their impact on the environment.

Once only a small piece of the total investment market, SRI now represents $2.71 trillion, more than 10% of all investments. That figure is up from $639 billion in 1995, an increase of more than 300%. As SRI has matured, green investing specifically has taken much of the limelight - as demand for clean technology, alternative and renewable energy, green building and other environmentally driven businesses rise, so does the desire to invest in them.

With this growth, opportunities for us as individuals to get into green investing and SRI abound. There are the usual suspects like stocks and bonds, mutual funds and venture capital. For example, dozens of mutual funds exist for investors looking to put their money where their mouth is, and support companies who share their values. And many of these funds focus on green companies, with large numbers of them joining the ranks within the last year or two.

Read the rest of this entry »

May 1: May Day.

For the average American working for a paycheck, May Day — a pagan spring ritual where you dance around a Maypole — marks yet another, less festive occasion.

From the first of January until around the first of May, all the money many of us will earn goes to pay our share of income tax to the US government.

Kiss those months — that money — goodbye (the present tax stimulus package is really just a refund).

We followed the advice of our parents, as most children do: get a good education, go to college and get a job — a nice, secure, well-paying one, with great fringe benefits, stock options or profit-sharing. But the bimonthly paychecks — after the government gets its share for income, Social Security and Medicare taxes — aren’t enough to keep up with the bills. Even with raises and promotions, many of us feel that we keep getting further in the hole, since the more we earn in earned income, the more it’s taxed. The reality is that the system is largely devised this way, not to tax the very rich but to exact a fee on the middle class and poor to keep these wage earners on the treadmaster of a job — or “promising career.”

Read the rest of this entry »

Illinois Representative Karen May (D-Highland) has introduced a bill calling for a system of renewable energy “feed-in tariffs” (FITs) like those used in Germany to spur the development of electricity from renewable sources. After its initial reading, HB 5855, The Illinois Renewable Energy Sources Act has been reported to the House Rules Committee for initial action.

Feed-in tariffs have proven remarkably successful throughout Europe, and especially in Germany, where some 55% of the world’s solar power capacity resides. I have covered the nuts and bolts of the FIT here and I have made a short argument for them here (but for a more comprehensive treatment of how and why the policy mechanism works, I recommend visiting the World Future Council’s PACT website, which is a powerful resource for advocates, policymakers, environmentalists, tech geeks and regular folks).

In a nutshell, a feed-in tariff offers a long-term guaranteed price contract (usually about 15-20 years) to any entity that contributes electricity to the grid via renewable sources like solar, wind, biomass, landfill gas, small hydro, geothermal and methane. Whereas existing policy mechanisms like the production tax credit favor large corporations with sizable tax liability, and investment tax credits favor those folks who can afford a large upfront cost that comes with a 20-30 year payoff, this policy tool encourages the distributed generation of renewable energy and it levels the playing field by providing long-term investment security for small businesses, homeowners, churches, schools and others, so they are more willing to make the financial commitment that is necessary for installing renewable energy themselves. This is not to say that our existing RE policy tools of choice (including renewable energy standards) are inherently bad, but they may be insufficient to spark the kind of growth in clean energy the public seems to be demanding.

The diffusion of renewable energy FITs has extended from Northern Europe to include some 47 countries worldwide, but the mechanism has yet to gain much political traction in the United States. The bill is modeled after the legislation proposed in the fall of 2007, when Rep. Kathleen Law introduced HB 5218 into the Michigan House of Representatives.

Ironically, while the eyes of renewable energy policy wonks (yes, there are such a thing) have been looking to California, Michigan and Minnesota for a successful German-style feed-in tariff, Rep. May’s bill took people by surprise. Read the rest of this entry »

On Wednesday, the Senate Finance Committee included measures to extend the Production Tax Credit (PTC) for renewable energy through the end of the 2009. The PTC, which is currently the most effective policy tool for developing renewable energy in the US, is set to expire at the end of 2008. The bill would also extend for one year a credit, equal to 30 percent of qualifying expenditures, for the purchase for qualified PV and solar water heating.

Senator Ken Salazar (D-CO), a vocal supporter of renewable energy for rural communities, issued a statement in strong support of the move:

“This package provides targeted tax incentives for small businesses that are the engine of our economy…It is my hope that, before the end of the week, we can pass this bill in the Senate and begin working with our House colleagues to come to swift agreement on how to give America’s economy the jump-start it needs.” Read the rest of this entry »

Don’t be fooled one minute by the politicians in Washington DC.

The economic stimulus package hailed by Congress and seemingly supported by the President is to provide as many as 116 million tax filers with a check for $600 to $1,200 (perhaps more if you have children). But all they’re doing is basically returning money we’ve already paid into the U.S. Treasury. And to do what?

Spend it, according to Democrats and Republicans alike.

These policians and their team of experts believe that what we need to avoid a recession is more consumption. They want us to spend our way out of a recession. Forget that “free markets” go through economic cycles of bulls and bears. Forget about our spiralling federal deficit. Forget about the mounting cost of numerous wars being waged on several fronts to fight terrorism — a bill the next generations will be picking up the tab for. Forget about global warming, collapsing bridges, our addiction to oil. Forget about the highly questionable fiscal shape of Social Security and Medicare in the coming years when about 78 million Americans are fully “retired” and need some money to live on and pay for the doctor bills.

Just take your token windfall and blow it on a new plasma TV, or something else you’ve always wanted. Read the rest of this entry »

Will a recession—or the prospect of a recession—curb consumer desire for green products? In the shadow of flat growth, will corporations slow their corporate social and environmental initiatives? Will we see a decrease in the burgeoning world of green marketing? The word “recession” has been splattered upon every newspaper and on the tongues of anyone with some knowledge of the lending crisis and skyrocketing price of petroleum. The question on my mind is whether an economic downturn will play a factor when consumers shop. Will green products take a backseat again?

According to the big-poppa of all securities firms, Goldman Sachs, consumer spending will continue to slow as the sickly housing markets have made it difficult for people to tap into their home equity. Another interesting thing to think about is how this will cause the unemployment rate (currently 5 %) to increase — economists predict it will increase to 6.5% by the end of 2008. Fewer jobs equals less money to be mixed in the economic batter and one more reason why consumers may opt for less expensive non-green goods. Read the rest of this entry »