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Is your pension money being used to destroy the planet?

Investment issues are not just for people who have buy shares. Pension companies and banks all invest in our behalf, but often do so without any checks to find out how the companies they invest in earn their money. Many of us would be horrified to discover that the money that we deposit in the bank, interest that we pay, or money in our pension fund is supporting companies actively engaged in deforestation, strip minning, or other ecologically unethical acitivities. Or, that our money is being used to support companies that deny employees basic human rights. It would be a real shame if all the good work we are doing to help save the planet is completely negated (or worse) by the company we have our pension with using our money in a harmful way.

There is a huge amount of money invested on behalf of investment funds. For example, in the UK about 8 billion pounds sterling is available for investment from such funds. This is about 30% of the money available for investment UK-wide. Similar levels of pension fund money is available in most Western countries. There is a lot of power in that amount of money. Mostly it is the money of 'ordinary people' in the hands of big companies. It is up to us 'ordinary people' to influence the pension companies to use the money our for good purposes.

If we change where the money goes we can really change the world. We can do this by asking our pension company if they have a socially responsible fund that our pension can be allocated to. If they don't we can look to moving our pension. We might even be better off. Socially responsible funds usually perform at least as well and sometime better than average.

Various organisation are springing up to help us ensure that our pensions fund and our bank account (or interest we pay) is can be classified as socially responsible investment. The simple answer is to go to an independent financial advisor and get some advice based on your personal circumstances.

However, you want to look at the issues yourself (at least at first) as that way you will be better informed when you meet with your financial advisor. What follows are some links and some information that I hope you will find useful. The will help you find ways to manage your money in better ways providing access to socially responsible investing advice (sri), free stock quotes for ethical stocks and other ethical investment information.

Approaches to socially responsible investment

Generally speaking, a fund will employ one or more of the five main approaches to green investment:

Positive screening: light green funds

These are investments made in company's that comply with a set of acceptable practices. Positively screened funds are sometimes called light green funds because they might invest in some companies that have a less than ideal environmental record. less than perfect companies. The company's activities are compared against a list of acceptable practices. They might include a company which is making a big effort to dispose of waste products in an environmentally safe way, yet, is struggling to do so completely effectively. The appeal of this approach is that it gives companies an incentive to change their ways.

Negative screening: dark green funds

These are investments made in companyies that score well in a list of dont's (don't produce lots of waiste, don't have high pollution levels etc). with a set of acceptable practices. These funds are 'dark green' as they typically employ strict negative screening. Some regard these as the greenest type of investment; others believe that it is too extreme and does not encourage companies that are making an effort.

Thematic investment

Thematic investment involves picking those companies that represent industries of the future. The obvious example being the renewable energy sector.These have a reputation for being volatile in the short term (as they are based on small companies and startup companies) but good for medium to long term investment as their service are in increasing demand.

Best of sector

This is where investments are made in companies that are the best in their sector in terms of socially responsibility. The oil industry is a classic example of this. Normally the oil industry is not accepptable to green investment funds. However, a fund may decide to invest a company in the oil industry that is doing the most to address climate change. This sends a useful signal to that companies competitors.

Engagement

Engagement is where the fund is a is a part-owner and has more power to influence management. It can use its voting rights at annual general meetings to steer the company into a more environmentally sustainable direction.

Investment Resources

What follows are resources for socially and environmentally concerned investors, consumers, and businesses. The links are mostly US, UK, Canadian and Australian organisations but much of the information on the monitoring sites is relevant worldwide.

US Stock Quotes on the SRI Business Resource Center site.

Social Investment Forum The Social Investment Forum site offers comprehensive information, contacts & resources on socially responsible investing. US Stock quotes: rates performances of socially responsible mutual funds.

S-R-Invest is a resource guide and information directory for individuals and companies interested in the concept and practice of socially responsible investment. Social investment is the allocation of financial resources after the consideration of both economic and social criteria with the goals of maximizing the potential financial and social returns to both the investor and the investee.

Real Money offers practical tips to help people save, spend, and invest their money in harmony with their values. Read the article of the month to get advice for greening your life and your money.

McDonald's "Social responsibility is not a project or a program. Acting responsibly is the way McDonald's does business," said Jack M. Greenberg, Chairman and Chief Executive Officer, McDonald's Corporation. We'll let you make up your own mind about that.

Essential Information Founded in 1982 by Ralph Nader, Essential Information is a non-profit, tax-exempt organization. We are involved in a variety of projects to encourage citizens to become active and engaged in their communities. We provide provocative information to the public on important topics neglected by the mass media and policy makers. Essential Information publishes a monthly magazine, books and reports, sponsors investigative journalism conferences, provides writers with grants to pursue investigations and operate clearing houses which disseminate information to grassroots organizations in the United States and the Third World.

Business for Social Responsibility Business for Social Responsibility (BSR) is a global nonprofit organization that helps companies achieve commercial success in ways that respect ethical values, people, communities and the environment. BSR provides both member and nonmember companies with advisory services, information resources and cross-sector opportunities to network, collaborate and solve challenging

Good Money Social, Ethical and Environmental Investing and Consuming & Corporate Accountability. Resources for socially and environmentally concerned investors, consumers, and businesses.

Corporate Monitor is developing a database on the environmental and social performance of Australian companies and foreign companies in Australia, and undertaking research on ethical managed funds. Through timely, accurate, impartial reporting and analysis, our aim is to contribute to an improvement in the accountability and performance of companies in Australia in terms of: environmental impact, observance of human rights, relations with Aborigines and observance of indigenous rights, contribution to world peace, workplace relations, social and health impacts, corporate citizenship, humane treatment of animals

Ethical Investment Research Service A leading independent research organisation. Carries out independent research covering over 40 different areas including animal testing, military, environmental performance and the Third World. Researches over 2500 companies from the UK, continental Europe, North America (the US and Canada) and the Asia-Pacific region (Australia, New Zealand, Japan, Singapore and Hong Kong. These include all companies on the FTSE All World Developed Index UK and European client base encompassing leading financial institutions, government bodies, pension funds and high profile charities.

Ethical Investing provide investment resources, including stocks and mutual fund investment resources, to those who are looking to make ethical investments. The ever-growing Resources sections for positive, ethical investments will be contrasted with the example of Monsanto, one of the world's most unethical investments that could be made so that investors will know what to avoid when investing responsibly.

Socially Responsible Investing Comprehensive personal finance site devoted to socially responsible investing. We offer complete coverage of social mutual funds, community investing, shareowner action and daily social investment news.

Global And Ethical Investment Advice Making ethical investment easy to use and accessible.

Triodos Bank one of Europe’s leading ethical banks. Has grown rapidly in the UK, doubling in size every 12 months.

Ethical Investment Association Australian association formed to pool the efforts of those involved, and more efficiently promote the concept and practice of ethical investment to the public

Money GuardianPerformance chart of UK Socially Responsible funds.

FTSE4Good UK Fund The FTSE4Good UK Fund is an open ended investment company, whose objective is to track the performance of the FTSE4Good UK Index. As well as creating a universe of socially responsible stocks, the new FTSE4Good Index is the first to provide a benchmark for socially responsible investment in the UK and will generate an important source of income in support of UNICEF.

Top 100 UK Occupational Pensions Friends of the Earth results of a survey it undertook of the country's top 100 occupational pension funds.

Just Pensions Includes a 20-page manual to help you campaign on pension fund investments. A number of organisations, including War on Want, Worldwide Fund for Nature and Amnesty International encourage their members to do so.

Social Investment Organization (SIO) Canadian organisation dedicated to the advancement of socially responsible investment. Features news, information resources, conferences, reports, and the like.

Ethical Funds Inc. A family of mutual funds providing Canadian investors with socially responsible investing.

Good guys finish first Very interesting article about Socially Responsible Investing (SRI)from a funding manager's perspective.

Fidelity Investments Even the big guys are in on the Socially Responsible act. The fund invests primarily in companies of any size that, in the opinion of management, conduct their business in a socially responsible manner... Socially responsible conduct extends to the areas of protection of the environment, fair labor practices, equal employment opportunity, the protection of consumers, and, more generally, the enhancement of the quality of life. The fund does not invest in companies primarily engaged in the manufacturing or distribution of weapons, tobacco or alcohol or the operation of gambling establishments

Ethical Money UK company enables you to choose and buy your own ethical investments online, or else to receive personal and independent advice from qualified advisers.

Ethical Investors individuals, groups, charities and companies who share this concern for the future of our society and the environment.