Investment advisors who have practiced socially responsible investing (SRI) going back decades as some on our team at Natural Investments have, remember well the doubters’ refrains of our means for social and environmental change: using investment capital does not advance social progress and environmental preservation. There is now evidence to refute them.
One way socially responsible investors create impact is by identifying which companies are exhibiting objectionable practices that undermine social progress or create environmental harm, and will decide to withhold financial backing from such companies. This is known as “avoidance” investing, one of several SRI leverage methods.
To assert that the global COVID-19 pandemic has affected almost every part of our daily lives in 2020 would be an understatement. As the one-year anniversary of the virus’s outbreak approaches, it is becoming clear that some adaptations and trends necessitated by the pandemic are likely to have lasting impacts. For instance, the rise in flexible and home-based working arrangements has forced the commercial real estate market to pivot. And the expansion of voting methods, which resulted in a record turnout in the 2020 US presidential election, has fundamentally changed electoral politics.
Americans will soon vote in an election with unprecedented stakes. The outcome of the presidential and Congressional races will determine whether this country continues its rapid descent into xenophobia, isolationism, and climate nihilism—or whether we open a doorway of possibility to a better future.
“These are tumultuous times.” It sounds like a cliché, but one could argue that it’s an apt description of life on planet Earth right now. As the world continues its struggle with mitigating the devastating effects of the novel coronavirus, the world has witnessed, yet again, horrific scenes of police violence and brutality against Black Americans. As socially responsible investors, we are well aware of the economic and racial disparities that exist across the world and, most especially, in the US—one of the wealthiest nations on the planet. Moments like these, however, bring those disparities into stark relief, reminding us that if ever there was a time to invest in shifting the paradigm of wealth inequality and institutionalized racism, the time is now.
In January, The National Oceanic and Atmospheric Administration (NOAA) reported that 2019 was the second hottest year on record, following closely behind 2016. The planet’s five warmest years have all occurred since 2015, and nine of the ten warmest years have occurred since 2005.
There is now overwhelming scientific consensus that CO2 emissions from fossil-fuels are a primary cause for our rising average global temperatures. The US Environmental Protection Agency (EPA) states, “Human activities are responsible for almost all of the increase in greenhouse gases in the atmosphere over the last 15 years.” The obvious remedy? A steep reduction of CO2 emissions.
This article is the second of a two-part series by Tiffany Brown exploring the racial wealth divide across the Deep South.
The Legacy Museum in Montgomery, Alabama tells the story of stolen people, enslavement for free labor, the premature withdrawal of federal troops after Emancipation, and the lack of enforcement of the Civil Rights Act of 1866. Back then, Black Codes legalized the arrest and punishment of Black people who didn’t have proof of employment, which led to convict leasing. In 1898, 73 percent of Alabama state revenue came from convict leasing to the lumber mills and for road maintenance. A full 35 years after Emancipation, Blacks were still being forced into free labor throughout the South.
In the museum, I learned of several laws that sought to block access by Black people to economic and political systems—on top of school segregation (which didn’t end until 1954) and the prohibition on Black voting until 1965. There was Shelley v. Kraemer (1948),
In a time of trade wars and political leaders on the fritz, investors may consider more conservative options to avoid market volatility. Real estate, bonds, and even gold might look appealing in times of turmoil. For socially responsible investors with even a cursory awareness of the gold mining industry, however, the question of whether gold holdings are compatible with human rights and environmental protection is urgent and important.
No Dirty Gold is an advocacy group of nonprofits and companies in industries that use gold. The group supports voluntary improvements in environmental and social practices by the industry.
This article is from our archives as part of the 100th issue special, celebrating twenty-five years of quarterly newsletters.
Finding this article in our archives, shortly after the attempted coup in Sudan this spring, we are reminded that the human toll in resource-related conflict is real, and economic consequences can extend for decades.
The statistics are mind-boggling: 200,000 dead, 2.5 million refugees and the holocaust in Darfur continues. Investments in oil companies in Sudan are supplying the money that supports this genocide. 70-80% of Sudan’s oil revenue is being funneled into its military. Oil ventures in Sudan are an undeniable enabler of Khartoum’s genocidal policy in Darfur.
There is a growing economic force currently going on to stop the violence. The Sudanese Divestment Task Force (SDTF) instituted a targeted divestment program last year.
This article is from our archives as a part of our 100th issue special, celebrating twenty-five years of quarterly newsletters.
References to divestment as an advocacy tool appear throughout this anniversary issue, but the South Africa divestment movement of the 1980s is credited with being the first successful campaign by socially-conscious investors to help catalyze major political change—in this case, the end of apartheid.
For us, the biggest headline of last year was “Apartheid Dies!” The biggest success story for SRI unfolded, as the African National Congress called for lifting sanctions against South Africa. Apartheid is about to be buried, and the people of South Africa are on the difficult road toward democracy.
In 1982, the Calvert Social Investment Fund became the first mutual fund to avoid investing in companies doing business in South Africa. The movement grew throughout the 1980s and added important financial clout to the struggle to end apartheid. SRI investors can take satisfaction from playing this critical role.
For over twenty-five years, Green Century Capital Management has been a leader in shareholder advocacy. This year, Green Century focused on two themes: sustainable agriculture and climate change. As part of its climate change advocacy, Green Century has been diligently working to promote plant-based proteins—as well as the preservation of tropical forests, the reduction of food waste, and a renewable energy transformation.
Plant-based proteins have received media attention in recent years due to the growing awareness that meat production is one of the main drivers of deforestation in the tropics. Globally, the production of livestock for human consumption generates 14% of the emissions that cause climate change.
By working with investors and agricultural companies,