Eco-investing: Smart Idea Or Waste Of Money?
Businesses are created and operated by people who want to make money. That does not make them evil. But, you can't ignore the massive intrigue that many corporations have developed for renewable resource projects. There is a worldwide trend of investors putting their money into solar wind and electric energies. However, is it really a good idea?
After all, the term "eco-investment" brings a certain high-profile solar energy corporation to mind. Not too long ago, Solyndra's collapse dealt a great hit to the solar industry, and while they insist that just one company's failure should not set the tone for the rest of the industry, investors are not sure what to believe. Just as with any issue, it's important to see both sides.
In a recent sustainability study conducted by Harvard Business Review, over the course of the next twenty years, companies who have proven their concern and toward environmental responsibility will have better records in regard to performance because they will have been prepared for future regulations and changes in the legislature.
Another point to consider is the success of mature industries that have been backed by eco-investors. Just look at Whole Foods, or Hain Celestial Group, which make organic food and skin products. Consumers love these companies. Why, do you ask? The conviction that children are the result of their environment, and the products that they consume.
Even if eco-investing seems like a stupid idea, when examined from a business' standpoint, it may be a profitable one. If the consumer wants to spend their extra cash buying an organic golden delicious apple, why would they argue? Isn't the customer always right? Whether this theory of future eco-responsibility will play out successfully remains to be seen. But the investors who advocate for eco-investing say that if businesses want to get their thumb in the environmental pie, they need to act now. Results likely won't come for at least twenty years... if they come at all.
Who knows how long this "green" trend will continue. Sure, everybody wants to be healthy, and buying all natural products makes the consumer feel as if they are doing something to help protect the world, fight pollution, and maybe even help make the ice floes in the polar-regions grow again, so the poor polar bears will stop drowning.
But how are people going to think two decades down the road? People don't think now the way they did in the nineties - which is a blessing, because if we did we might all still be running around in neon lycra listening to the Backstreet Boys.
The only thing that can be safely said of eco-investing, as with any other kind of investing, is that it is a gamble. But most investors will benefit through the use of Bankers Acceptances.