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There are many choices we make in life that affect the environment, but investing somehow hasnít seemed a priority until now. Green investing is becoming popular as the global green economy starts to heat up. More and more people are also starting to understand that their investment dollars in corporations may not align with their social values. With each dollar we invest, we are stating that we support a businessís operations in return for a portion of the profit. So do we really want to make money from companies that are damaging our environment?

Socially Responsible Investing

In recent years, Socially Responsible Investing (SRI) has become a growing segment in the financial industry. Itís about making investment decisions not solely on financial return, but also environmental, social, and ethical criteria. There are now companies dedicated to defining ways to weed out the companies that are damaging our environment and engaging in poor corporate citizenship. Here are several of the indexes now tracking responsible and sustainable companies:

  • Dow Jones Sustainability Index (recognizing financial, social, and environmental leaders)
  • Jantzi Social Index (recognizing Canadian companies meeting social and environmental criteria)
  • FTSE4Good Index (recognizing companies meeting environmental sustainability and human rights standards)

SRI Mutual Funds

In recent years, Socially Responsible Investing (SRI) has become a fast growing segment of the Canadian mutual fund market. These SRI funds adhere to an established standard to screen companies the fund will invest in. It gives the fund holders piece of mind that their investment dollars are going towards companies that care for the environment and social values.

Here are some examples of SRI mutual funds:

  • Ethical Canadian Dividend
  • PH&N Community Values Fund
  • Desjardins Environment
  • Investors Summa SRI Fund

Take a closer look at your investments. You might be surprised what your investment dollars are supporting. Even your investment portfolio can go green.

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