Living Green
From Co-op America

Dear Co-op America,
I'm concerned about the climate crisis, and I want to do more to turn back climate change. How can I use my investments to make a difference?
                       – Andrea H., Portland, Oregon

Great question, Andrea. To change course and turn back the climate crisis, we can all use our investor power to advance clean energy, and to push polluters to clean up their acts. You can make a difference whether your investments are large or small – even by using your checking or savings account.

Below, we give you six ways you can take action with your investments today, but please remember whenever you invest, do your research, read all the materials and consider consulting a financial advisor. (As they say, past performance does not guarantee future results.)

1. Choose a mutual fund that invests in clean energy. These funds invest directly in clean energy companies, as     well as in innovators in other fields that are advancing clean energy through their operations.
2. Choose an energy-focused community investment. Community investments direct capital toward areas that     are under- served by traditional financial institutions. You can find community-development funds that     specifically provide capital for clean-energy or energy-conservation projects in inner-city or developing-world     communities. (You also can open checking or savings accounts with community- development banks or credit     unions.)
3. Vote your proxies. If you own stock in businesses connected to the climate crisis – such as coal companies, oil     and gas companies, automobile companies and electric power companies – file resolutions to urge them to     take action. Review your proxy ballot when you receive it by mail, and be sure to cast your vote in favor of     progress on climate issues.
4. Choose a mutual fund that pushes for change. Socially responsible mutual funds often incorporate conventional     companies into their holdings so they can hold companies accountable for their business practices and push for     greater environmental responsibility. Mutual-fund companies, just like individual shareholders, are part-owners     of the companies in which they invest, and can use that status to arrange dialogues with company management     or force votes on company policies at annual shareholders' meetings.
5. Choose a clean-energy ETF. ETFs (exchange-traded funds) are funds that track an "index" but can be traded     like a stock. An index is essentially a list of stocks assembled to track the performance of a particular market     segment, so that when an ETF is attached to an index of, say, clean-technology companies or renewable-     energy companies, you can feel secure that your investment is helping to curb climate change.
6. Work with a green financial planner. A financial planner can walk you through all of the above strategies and     help you decide what type of responsible investment might be right for you and your financial situation. (Co-op     America does not recommend any specific investments and strongly encourages consulting a financial planner.)     Tell your planner that you are concerned about climate change and emphasize that your investments should     reflect your values. She or he should be able to steer you toward investments that bring a positive return for     people and the planet.

To find examples of each of the above steps (as well as one more way to take action), please visit Co-op America's website at www.coopamerica.org/go/SevenWays. Good luck, and thanks for taking action on the climate.

Living Green is brought to you by Co-op America, a national non-profit that provides green living, purchasing, and investing tips and resources. To join Co-op America and get a free copy of the National Green Pages™ directory of green businesses, call 800-58-GREEN, www.coopamerica.org. E-mail “Living Green” questions to livinggreen@coopamerica.org.