Investing for a Greener Society

The idea of investment is slowly evolving from “getting rich scheme” into “helping the world while getting rich plan”. Activism in the investment industry is not a new concept but it is still going through an uphill battle. The idea of investors and shareholders taking a stand against the policies and procedures of the company they are investing in is not new.

Stories of Sister Patricia Daly have circulated online in 2007 and may have inspired more investors and companies to take the initiative. Sister Daly is a nun with only 300 shares in Exxon Mobil. But she had enough shares to file a resolution for the multi-billion dollar corporation to start its efforts to reduce emissions.

She could be considered as a small voice, but her resolution was noted by more than 30% of the share holders. Because of the resolution, Exxon Mobil was thought to have been swayed or else lose their precious shareholders.

The Demand for More Responsible Companies

Even before the great story of Sister Daly, shareholders have been demanding the companies to be more responsible in their operations. Social activism in investments is not only based on going green but also in making sure their employees were provided with the right benefits, the source of raw materials does not destroy communities and wildlife are never in trouble during production.

As the idea of global warming “heats” up, more companies are being asked for transparency in their contribution or solution to this problem. Companies are now being asked of their carbon emissions and are being asked if the could create measures to lessen or even completely remove environmental hazards.

Because of the pressure, companies are now being transparent especially on their initiative (or the lack thereof) of going green.

Taking Your Stand

If you are thinking of writing a petition like Sister Patricia Daly, you are always welcome to write a petition but there has to be parameters that should be met which will qualify you to create a petition. According to the SEC, you need to have at least US$2,000 in investments in the company or at least 1% of the shares for more than a year. Every shareholders’ meeting you are only allowed to share one petition.

Unfortunately, this could be a daunting task as you are taking on a very large company. There are those that do not really care about activism and will immediately shutdown the petition. That could be disheartening but do not worry – you are not the only one creating a petition.

In the shareholders’ meeting, you will surely bump into someone who is also planning to file the same petition. Working together would solicit more support that standing alone hoping that everyone will follow suit. The move of Sister Patricia Daly is much like the same as what you will be doing but might not have the same response.

Avoiding the Company

Filing a petition could, unfortunately, be shut down by other investors. It is always an uphill battle when you are fighting against large corporations who has thousands of investors willing to back up their practices at any time.

Instead of fighting a losing battle; leave. There are other companies who support a greener environment. Fortunately, this trend is being followed by earth conscious investors. This is even the same for other investors who are also seeking companies who have high regards for human rights as they observe good labor practices.

Responsible investment should be observed by every investor if we want to have a better world. It is an uphill battle to mold a company to be greener and more responsible but there are now telltale signs that companies are willing to change if they receive enough pressure from their investors.