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Green Investing
Sure, you may think you're doing your part for the
environment, but if you don't know where your bank savings and
RRSPs are being invested, then you may be supporting the very
companies whose products you've tried to avoid.
So why not try investing in a "green" or
"ethical" fund? It's a relatively painless way to make
your money work for a healthier environment.
Promoting Socially Responsible
Investing (SRI)
Social Investment
Organization (SIO): The SIO is a national non-profit organization
dedicated to the advancement of a socially and environmentally
sustainable society through socially responsible investment (SRI)
and corporate social responsibility (CSR). Members receive a
quarterly newsletter, a quarterly investment update, and a social
investment directory.
Corporate Responsibility and SRI
Research
Michael Jantzi Research Associates:
MJRA provides a full range of social investment research
and support services to institutional clients and financial
professionals who integrate social and environmental criteria into their investment decisions.
In February 2000, MJRA launched the Jantzi Social Index™
(JSI™), a socially screened, market capitalization-weighted common stock index modeled on the S&P/TSE 60. The JSI™ consists of 60 Canadian companies that pass a set of broadly-based social and environmental screens.
The JSI™ has begun to generate the first definitive data on the effects of social screening on financial performance in Canada.
Ethicscan:
EthicScan's mission is to empower individuals, businesses and organizations with the tools and research to apply their values across life's daily challenges - be it training, procurement, consuming, partnering, ethical assurance and investing, or simply managing with integrity.
EthicScan emphasizes original independent research into the social, labour and environmental performance of 1500 Canadian organizations in order to provide resources, creative tools, case studies and advice. This information and experience has empowered many individuals and progressive organizations to benchmark their performance and, in so doing, promote ethical decision-making.
Good Money:
Social,
Ethical and Environmental Investments, Responsible Consuming
& Corporate Accountability. This is a U.S-based website, with
excellent information and links on ethical investing.
Corporate
Knights: Corporate Knights is the world’s first mass-market magazine with an explicit focus on corporate social responsibility, the proposition that good corporate citizenship and solid financial performance go hand-in-hand.
Sections on their website include The Green Consumer Guide, the Global 100 most
sustainable corporations in the world, and a section on Socially Responsible
Investing.
Best
Banks
Everyday Banking
Citizen's
Bank
Corporate social responsibility is at the heart of the Citizen's Bank.
Citizens Bank was formed by Vancouver City Savings Credit Union
(VanCity), one of the best known financial institutions in Western Canada and the largest credit union in Canada. It's the Canadian leader in ethical banking,
with an ethical policy that guides its entire operations and investments.
The monthly statement to members includes a newsletter on social issues and
member vote annually on the organizations to receive charitable contributions
from the bank. The only catch is that you will have to get used to
branchless banking -- you can use the internet, a 24 hour phone service, deposit
or withdraw funds from affiliated banks and credit unions . You'll soon
develop a list of your favourite retailers that offer "cash back".
Traditional Banks
Royal Bank
of Canada
The Royal Bank scored in the Corporate
Knights Global 100 most sustainable
corporations for 2005.
RBC also came out tops in a Globe
and Mail poll on the best bank. For the 10th consecutive year, RBC was named the top corporation in the category of "Corporate Social Responsibility."
In 2004, the bank contributed more than $59 million to community causes worldwide, through donations of more than $39 million, and an additional $20 million in the support and sponsorship of community events and national organizations
TD Canada Trust
For as little as $1.00 a month, you can join the
TD Friends of the Environment Foundation and lend your support to projects that will benefit your community and the Canadian environment.
As a contributor, all of your donations go toward projects supported by your local TD Friends of the Environment Foundation Chapter — so you'll be able to see results in your community. TD makes your monthly donations go further by contributing $1 million per year to the TD Friends of the Environment Foundation. In addition to this contribution TD covers management and administrative costs associated with the foundation, so your donation stays within your community.
Best
Mutual Funds
If you are looking to shift your
savings into ethical investments, there are about two dozen ethical
mutual funds in Canada (operated by six companies) that can be
used as part of your RRSP portfolio. In general, they all screen
the companies they invest in against a set of criteria that you
should be able to find on their web site or in their literature.
On the whole, these funds make it easy to make sure
your money is being invested in "better" companies. If
you haven't got at least part of your RRSP in an ethical fund, do
it now! (You can always do more research and set up a
self-directed fund later.)
1. Find a good financial advisor
If you are looking for an advisor, check the
Social Investment Organization's list of financial advisors http://www.socialinvestment.ca/Canadadirectory.htm.
If you currently have a financial advisor, let
them know you would like to transfer your investments into socially and
environmentally responsible funds.
2. Research the Ethical Funds
Read up on each of the funds. With new
funds coming out every year, here's where to get the up-to-date lists:
Social Investment Organization: http://www.socialinvestment.ca/mutualfunds.htm
Corporate Knights: http://www.corporateknights.ca/sri/index.asp
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