Investors Get Major Companies To Act On Climate Change. - [COMMENTARY] "[In 2008] A record 57 climate-related shareholder resolutions were filed with U.S. companies, of which nearly half were withdrawn after the companies agreed to positive climate-related commitments. Remaining resolutions that went to a vote received record high average voting support of 23.5 percent, including 39.6 percent support for a resolution filed with coal company CONSOL Energy, the highest vote ever on a global warming shareholder resolution." The number of environmentally conscious major corporations grows rapidly. This is good for the world - and great for ethical investors. Well done Ceres and the Interfaith Center on Corporate Responsibility (ICCR) for promoting these proxy fights.
Investors Achieve Major Company Commitments on Climate Change, Ceres/ICCR press release, August 26, 2008, Accountability Central, USA.

Big Growth Possible For Green Funds In Australia. - [COMMENTARY] "Only 1 in 20 Australians have or are aware of having a direct exposure to 'green' funds despite 77.8% of both investors and non-investors believing their own behaviour can make a difference to environmental issues." Clearly, if the opinion polls are right, the market for green-ethical stocks and bonds in Australia has hardly been tapped.
Green or Greed, August 26, 2008, burningpants.com, Australia.

How Ethical Investors Can Help The Hungry. - [COMMENTARY] This is a good article on what ethical and socially responsible investors can and are doing to help solve the world's food problems.
How can investors help the hungry? By G. Jeffrey MacDonald, August 25, 2008, The Christian Science Monitor, USA.

92% Of Large UK Companies Surveyed Have Environmental Policies In Place Compared To Only 58% Of Small Companies. - [COMMENTARY] "Envirowise and EEF talk to 562 companies for the report "Measuring performance - Environment survey 2008." The manufacturing companies represent more than 122,000 employees." The survey also says that these environmental policies are all approved at the board level. This is a terrific showing and demonstrates that UK companies understand the advantage of using corporate social responsibility.
U.K. Manufacturers Increase Green Focus, Gaps Exist Between Large And Small Companies: Survey, August 25, 2008, GreenBiz.com, USA.

American Website For 'Biblically Responsible Investing' Launched. - [COMMENTARY] "Biblically Responsible Investing is the act of building an investment portfolio consisting only of companies that do not participate in or promote lifestyles that are offensive to Christian values." Also, the site mentions a biblically responsible stock index it calls Integrity I-DEX.
Moral Money, USA.

Major Western Socially Responsible Investing (SRI) Groups Team-Up With UN To Attract SRI Funds To Africa. - [COMMENTARY] "The European Social Investment Forum - EUROSIF, Social Investment Forum - SIF, and the Interfaith Center on Corporate Responsibility - ICCR have joined Africa investor, the UN Office for Partnerships and New Partnership For Africa's Development - NEPAD are co-conveners of the roundtable to launch the first Pan African investable SRI Index initiative... NEPAD Business Group has commissioned Africa Investor, a leading Africa research and index provider, to launch an initiative to attract... SRI flow to Africa" This is a great step forward for Africa where SRI screening for ethical stocks and bonds is rare, except for South Africa which has the JSE SRI Index.
NEPAD appoints Africa Investor to spearhead SRI flow to Africa, by Judith Akolo, August 22, 2008, Kenyan Broadcasting Corporation, Kenya.

Business For Social Responsibility (BSR) Publishes New Report On The Mainstreaming Of Environmental, Social, & Governance (ESG) Issues By Financial Institutions. - [COMMENTARY] "This report looks beyond socially responsible investors and explores how mainstream financial institutions can advance the use of ESG criteria to maximize financial performance." The report cites the following points to making ESG issues being considered commonplace among financial institutions: more ESG data linking it to financial returns; the need to regulate the reporting of ESG information; convincing shareholders to think long-term where ESG factors become increasingly critical; larger numbers of investment professionals knowledgeable about ESG criteria; and dealing with cynicism about ESG criteria. This report is useful reading for all investment professionals and ethical investors alike.
Environmental, Social and Governance: Moving to Mainstream Investing? August 20, 2008, Business for Social Responsibility, USA.

Human Rights Watch Critical Of Olympic Corporate Sponsors. - [COMMENTARY] "The major corporate sponsors of the Beijing Olympics have failed to uphold their own principles of corporate social responsibility, Human Rights Watch said today... The 12 TOP ("The Olympic Partner") sponsors of the Beijing Games are Atos Origin, Coca-Cola, General Electric, Manulife, Johnson & Johnson, Kodak, Lenovo, McDonald's, Omega (Swatch Group), Panasonic, Samsung, and Visa. Over the last 12 months, Human Rights Watch repeatedly contacted all TOP sponsors and met with five of these companies, off the record. The other seven failed to respond to repeated requests to meet with Human Rights Watch."

Many of these Olympics sponsors have hitherto been among the best socially responsible stocks to invest in. It will be interesting to see if socially responsible investing research organizations change any of their ratings of these companies as a result of the Human Rights Watch accusations.
TOP Sponsors Should Back Introduction of a Permanent Olympic Rights Monitor, edited by Kandy Ringer, August 18, 2008, BBSNews.net, USA.

US Could Halve Gasoline Consumption By 2035. - [COMMENTARY] This is the conclusion from a new Massachusetts Institute of Technology report. I believe the US and the world will engage in massive energy conservation efforts. Together with the growth of alternative energy solutions, our energy crisis will get resolved. There will be many green stocks that are good to invest in. Be sure you get an advisor who knows this area and keeps-up with developments.
U.S. Could Halve Fuel Consumption by 2035: Report, August 14, 2008, GreenBiz.com, USA.

Islamic Banking In UK Predicted To Double In Size By 2013. - [COMMENTARY] "Islamic banking in London, unencumbered by the woes of subprime mortgages and the credit crunch, is undergoing an unparalleled boom. With the Sharia-compliant market growing by up to 15 per cent a year and estimated to be worth a trillion dollars (Dh3.67tn) by 2010, the number of Islamic investment banks in the UK is predicted to double within five years, said Samer Merhi, the executive director of the Gatehouse Bank, an Islamic finance house based in the UK." London looks like it could become the leading international centre for Islamic finance - which does not allow for investment in products such as alcohol and forbids the charging of interest. Generally though, it has many similarities to ethical investing.
UK Islamic banks to double in five years, by David Sapsted, The National, United Arab Emirates (UAE).

Environmental Markets Rankings Survey. - [COMMENTARY] "Respondents were asked to vote for their preferred companies covering a range of categories including: emissions; renewables; renewables supply & investment; biofuels; clean technology; carbon sequestration; energy efficiency; and finance... Emissions trading was identified as the green market that will provide the best return on investment over the next ten years, with energy efficiency coming second, wind power third and clean tech and solar power both fourth." Energy Risk, a UK specialist in tracking and reporting on energy markets, completed and published this survey. It provides an overview on 'insider' thinking as to what firms perform the best in various energy markets.
Environmental markets rankings survey, summer 2008, BizResearch, August 15, 2008, UK.

Great Report On China's Prospective Sustainability & Corporate Governance Situation Post Olympics. - [COMMENTARY] Any ethical investor with holdings in China, or considering to invest there, will want to read this report. F&C who wrote the report, are a top-ranked UK ethical investing firm. The advantages of using corporate social responsibility are just beginning to be recognized by Chinese companies.
Preparing for the post-Olympics hangover – governance and sustainability in China, July, 2008, F&C Investments, UK.

83% In UK Survey Say They Would Give Less To Charities If They Do Not Invest Ethically. - [COMMENTARY] "Almost all (91%) of those surveyed agreed that charities should be investing their money in an ethically or socially responsible way. This highlights a mis-match between public expectations and the number of charities actually investing ethically – a 2006 study by ACCA found that just 55% of large UK charities had an ethical investment policy." This also illustrates the wrong-headed approach taken by Bill Gates and his foundation. Mr. Gates claims that it is right for his foundation not to worry about where it makes its investments as long as they maximize returns! Clearly, at least in the UK, and I suspect almost everywhere else, that approach is not a popular one. Ethical investing is a must for charities, or they undermine their legitimacy!
Charities not investing ethically risk losing support of the public, survey finds, August 11, 2008, Charity SRI, EIRIS, UK.

WWF Wins Challenge Against Shell Over Tar Sands. - [COMMENTARY] "... the World Wildlife Fund won a challenge before the U.K. advertising watchdog against Royal Dutch Shell PLC over its claims that oil sands projects in Canada are environmentally sustainable." This should serve as a warning to all companies that they need to be truly green if they want to promote themselves and their activities as green.
WWF wins challenge against Shell's oil sands ad, by Claudia Cattaneo, August 13, 2008, Financial Post, Canada.

Another US Socially Responsible (SRI) Study Confirms That SRI Delivers As Good Or Better Returns Than 'Conventional' Investing. - [COMMENTARY] The study compares the performance of many US SRI funds from their inception up until June, 2006, with various other funds. You can download it from the following link, though you must first click 'choose download location.'
Socially Responsible Investments, by Meir Statman, Glenn Klimek Professor of Finance, Santa Clara University, California, USA.

Global Clean Energy Venture Capital & Private Equity 2nd Quarter Investment Hit $5.8 billion, Up From $2.6 Billion In Previous Quarter. - [COMMENTARY] "The increase was driven by a massive $2.5 billion inflow of funds in the form of private equity expansion capital, and also by a strong showing from private equity buy-outs. The message was that investors are keen to put to work the money they raised last year, while other investors are looking for exits.” Data comes from New Energy Finance of London, UK.
Clean energy investors shrug off economic difficulties, August 7, 2008, Environmental Finance, UK.

How Banking Is Becoming Green. - [COMMENTARY] This is a good overview of why the banking industry is becoming green. The article is useful reading for green or ethical investors with holdings in the financial sector.
How Banking Became Green, by Victoria Pennington, August 11, 2008, GreenBiz.com, USA.

New Index Measures Performance Of Green Initial Public Offerings (IPOs). - [COMMENTARY] "The Renaissance Green IPO Index captures the performance of newly public companies whose products and services offer solutions to environmental problems." 'Dotcom' IPOs were the craze at the height of the tech stock bubble about eight years ago. There has not been a lot in the way of IPOs since then. However, with the worldwide interest in solving our environmental problems, new green IPOs are likely to gain momentum. This unique index attempts to track their performance.
The Renaissance Green IPO Index, Renaissance Capital, USA.

KLD Research & Analytics, Inc, Ryan ALM, Inc. & Mergent, Inc. Launch The KLD U.S. Corporate Bond (USCB) Index. - [COMMENTARY] "These investable indexes are the first to apply environmental, social and governance (ESG) performance factors to a U.S. fixed income asset class." Finally, we see an ESG US corporate bond index! This is good news for ethical investors. Hopefully, such indexes will soon be created elsewhere too.
KLD, Ryan ALM and Mergent Launch Family of U.S. Environmental, Social and Governance (ESG) Corporate Bond Indexes, August 7, 2008, MarketWatch, USA.

US Cleantech Venture Capital Investment Hits Record $961.7 million In 2nd Quarter. - [COMMENTARY] This figure is up 41% from the same period a year ago and comes from an Ernst & Young report using data from Dow Jones VentureOne. Cleantech has become the new dotcom. I do believe though that it promises to be more durable than the dotcom mania. But it will certainly have its ups and downs.
US Cleantech Investment Climbs 41% in 2nd Quarter of 2008 to Nearly $1 Billion, The Highest Quarter on Record, August 4, 20008, press release of Ernst & Young published on Yahoo Finance, USA.

Want To Invest In Green Fast Food? - [COMMENTARY] This is a good review article on the beginnings of a green US fast food industry.
Green Fast Food: Really Here or a Green Dream? By Anne Moore Odell, August 4, 2008, originally from SocialFunds.com, published on GreenBiz.com, USA.

Investors With $1.5 Trillion In Investments Ask US Senate To Extend Renewable Energy and Energy Efficiency Tax Credits. - [COMMENTARY] The current tax credit regime is set to expire at the end of this year and has been helpful in promoting renewable energy projects throughout the US. "In the letter [to the US Senate], investors cite a February 2008 study by the Navigant consulting firm that a failure to enact these tax credit extensions will result in the loss of more than 116,000 jobs and $19 billion in investment in 2009 in the solar and wind energy industries alone... Congress will support the continued development of 42,000 megawatts of renewable energy projects in 45 states equivalent to the capacity of 75 electric power plants by extending these tax credits."

It is unfortunate that governments everywhere prop up carbon-based industries. These run the gamut from tax deductions, tax incentives, and numerous other support programmes, both direct and indirect. Try adding to oil costs the US war/defence expenditures of its Middle East activities to safeguard oil supplies, and then see what a barrel of oil would cost! If it were a true even playing field, renewables, even without incentives, would be quite competitive.
Investors with $1.5 Trillion in Assets Call on Congress to Extend Renewable Energy and Energy Efficiency Tax Credits, press release by Ceres, July 29, 2008, USA.

Watson Wyatt Report Sees ESG As One Of Six Major Investment Trends In Next Five Years. - [COMMENTARY] ESG - environmental, social and governance - issues are coming to the fore, as they must, for properly assessing investment opportunities and obstacles. Analysing companies this way necessitates a long-term focus, something the investment industry does not, by and large, do. This report highly criticizes the industry for its short-termism.
ESG to be one of six major investment trends in next five years: Watson Wyatt, by Hugh Wheelan, July 31, 2008, Responsible Investor, UK.

Investment Professionals Vote ESG As Preferred Term. - [COMMENTARY] "‘AXA Investment Managers and AQ Research have announced the results of a survey in which over 350 global investment professionals took part... ESG’ and ‘sustainability’ emerged as preferred terms associated with integration from a selection of 16 choices... The preference... was consistent in Europe and North America..."
Investment Professionals vote ‘ESG’ and ‘Sustainability’ as top descriptions, July 31, 2008, Accountability-Central.com, USA.

Pax Funds Fined $500,000 By US Securities & Exchange Commission For Failing To Abide By Their Own Investment Screens. - [COMMENTARY] "Pax World had violated the funds’ SRI restrictions which prohibited them from buying securities of companies that derived revenue from the manufacture of alcohol or gambling products; or derived more than 5% of their revenue from contracts with the U.S. Department of Defense or failed to satisfy the funds’ environmental or labor standards, the filing said." Though not stated, it is likely that the pressure to perform for short term goals could be a factor. Most fund managers are measured for their short term performance, even though their investors have a supposed long-term horizon. The average US mutual fund has over a 100% turnover of its holdings each year! Hopefully, as consciousness rises, both investors and investment managers will move to a longer-term focus and such misdeeds will be less.
Pax World, SEC settle non-SRI charge, by Barry B. Burr, July 31, 2008, Pensions & Investments, USA.

Ethical Investing Groups Seek End To Tar Sands & Other Unconventional Oil Production. - [COMMENTARY] "Shell, BP and other oil companies at the centre of the tar sands revolution in Canada are facing a backlash from the Co-operative [UK] and other members of the ethical investment community determined to bring a halt to these operations for environmental reasons." This has the potential to be big. Investors in these companies will have to watch these developments closely. Personally, investing in carbon related industries is something I have always avoided because of their environmental consequences.
Oil: Campaigners seek an end to production of CO2-intensive 'unconventional fuels,' by Terry Macalister, July 29, 2008, The Guardian, UK.

Eating Less Meat & Junk Food Could Cut Fossil Energy Use By Half. - [COMMENTARY] David Pimentel and colleagues at Cornell University, New York, suggest that: 1) Americans eat less as they already consume over 30% more calories than they need; 2) reduce meat and junk food consumption; 3) move to traditional organic farm production; and 4) improvements to food processing, packaging and distribution that are known to reduce energy requirements. I expect these things to happen in the years ahead. Though it might be tricky to do, finding companies that benefit from these trends could be among the best stocks that are good to invest in over the medium to longer term. It is an area that many ethical investors might want to discuss with their advisors.
Eating Less Meat And Junk Food Could Cut Fossil Energy Fuel Use Almost In Half, July 24, 2008, ScienceDaily, USA.

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