Blog Action Day – Investor Relations

15 October 2007

Today is Blog Action Day – a day when bloggers throughout the world blog about the environment.Blogaction_2

Who knew?

Blogging about the environment from an investor relations perspective isn’t simple, but there are aspects we can touch on. So here I go.

Something that has increased in popularity over the years is socially responsible funds, otherwise known as environmental funds or green funds. These are mutual funds that, based on various criteria, have a mandate to invest in socially responsible companies with a good environmental record. An example of such a fund is the Winslow Green Growth Fund.

TD Asset Management recently signed on to license the Dow Jones Sustainability Index (DJSI) to assist with research of companies that receive two thumbs up for corporate sustainability.  The DJSI is a good way for environmentally and socially responsible companies to get on the radar screen of environmental funds.

Now, is the market close to seeing large portfolio managers and analysts drive their buying decisions and recommendations based on a company’s environmental record?  In my opinion, not even close. One only needs to look as far as the components of the Dow 30 to see that the most significant elements of North America’s investment dollars are not exactly the picture of environmental perfection.

Having said this, the investment community is getting better and the emergence and growth of environmental funds is certainly giving discriminating investors an option.

Happy Blog Action Day!

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