Green Mutual Funds
Green companies are typically businesses that develop green inventions. Companies that develop alternative and renewable energy sources using solar, wind, bio fuels and geothermal technology are examples of green businesses. Environmental concerns have created a large demand for investment in green companies and governments extend tax incentives to green mutual funds that invest in these companies. Since 2007, over $1.24 trillion has been invested in green companies around the world. Green mutual funds generally have a management team that oversees their investments.
Green CompaniesSome investment funds are more green than others and there is no hard and fast rule as to what is "green". For example, funding a company that has innovative technology to reduce greenhouse gases, or to create energy from biological resources, would be "green". But funding a car company that makes 5% of their vehicles as electric and 95% as fossil burners isn't green although it's "going" green.
Green Century Capital Management is a green fund that was started by environmental advocacy groups. Winslow Green Growth Fund is another fund than invests in companies that provide solutions to environmental problems. Calvert Global Alternative Energy Fund invests in alternative energy companies the produce or research advances in solar, wind, bio and geothermal energy. Opportunities for green investment exist for inventions such as technologies that store renewable energy; recycling and energy conservation inventions or green building inventions ( energy efficient lighting, glass, insulation). Organic farming innovations and green pesticide inventions are also some examples of the technologies that green funds prefer to support.
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Green mutual funds invest in green technology.
Similarly, a steel company that supplies parts for wind turbines would be contributing to a greener environment but it would be "less green" than a company that actually makes wind turbines.
