Environmentally Friendly Investing

Most people try to be at least a little environmentally conscious in their daily lives. They do things like not leaving lights on or being careful not to use too much water. Believe it or not, though, there is now pressure to be environmentally friendly with your investments. If you’re invested in fossil fuel holdings, such as coal, oil, and natural gas, then many would argue that your investments aren’t environmentally friendly.  

This whole issue of “investing environmentally” has been brought to life by student protesters across the nation. Many, upon finding that their universities and colleges had fossil fuel holdings, are asking them to let go of those investments and find others.  This isn’t an issue affecting just a few colleges and universities across the nation either. No, recent reports indicate that American universities, combined, have about $400 billion in such endowments.

It’s not just universities that are guilty of what some call “irresponsible investing.” Many Americans, often unbeknownst to them, have 529 and other savings and investment plans that are backed by or at least supported or connected to fossil fuel funds in one way or another. So, you could be backing something that you don’t really agree with and that you deem irresponsible!

Not sure if your savings plan is affected or not? Take time to read the fine print on your paperwork, or simply ask outright. If you find something that you don’t like, ask if your provider offers “socially responsible investing (SRI)” options and what they are. You may be able to change up the way you invest for peace of mind.

Sadly, though, not all financial organizations offer SRI plans. If yours doesn’t or if it doesn’t have a plan that will allow you to get fossil fuel companies out of your investment plans, you might have to look into a different provider, one that understands and supports your goals and principles. After all, there are some things more important than money!