Socially responsible investing (SRI) warms the cockles of
our hearts, focusing on companies that are
helping the world-- or at least doing less harm than
others. However, if current trends continue, the SRI niche
could succeed its way right out of existence.
It's easy to argue both for and against SRI. On the plus
side, why wouldn't you want to invest your dollars in (and
soothe your conscience with)
the most ethical, responsible companies? On the minus
side, shouldn't investors pursue
the most undervalued companiesthey can find, however
those companies may make their money? Besides, when you buy
shares of a company, your investing dollars go not to the
company itself, but to whomever sold you the shares.
More people now seem to agree with the favorable side of
the SRI argument. According to a new report from Robeco
Investment Management and Booz and Co., SRI is expected to
grow so much in the next few years that it might encompass
20% of global assets under management by 2015. (That's up
from 7% in 2007.) Falling carbon emissions, the rise of clean
technologies, and other such factors are reportedly driving
this shift.
Going native
If SRI continues to grow at such a rapid clip, it might
cease to be a niche, and just become part of regular,
everyday investing.
Already,
Newsweekhas published a ranking of 500 major
companies according to their eco-friendliness. You might
expect to see plenty of alternative energy companies and
other unfamiliar names, but you won't find any such
contenders among the list's top 10:
Company
"Green" Score
Hewlett-Packard
100.00
Dell (Nasdaq: DELL)
98.87
Johnson & Johnson (NYSE: JNJ)
98.56
Intel
95.12
IBM (NYSE: IBM)
94.06
State Street
93.62 Continued... |