| l investing is concerned with industries that promote | | | | Many investors are supporting ethical investments in |
| affirmative environmental programs, sustainable | | | | the effort to find alternative fuel. Fuel cell technology |
| growth, and good corporate governance. Many | | | | firms and biofuel companies have become prime |
| people still think that investors in green industries may | | | | movers in the advancement of clean but reliable fuel, |
| lose their money in the long run because it is difficult | | | | some of which are already available in some in |
| to maximise financial return when taking social ethics | | | | electric vehicles and hybrid cars. Hythane is another |
| into perspective. | | | | alternative clean energy fuel which is currently used |
| However, developments in the last 5 years would | | | | by Eden Energy (EDE). |
| contradict this as there have been significant players | | | | 9. Pollution Control |
| entering green industries in recent years. | | | | The pollution control industry is on the rise following |
| These companies offer investors a diverse portfolio | | | | the growth of companies that specialise in reducing |
| that provides potential for competitive returns. The | | | | greenhouse gas emissions. There are some pollution |
| industries these large players have entered vary | | | | control companies like Hydromet (HMC), Dolomatrix |
| substantially, however there are 10 key industries | | | | (DMX) and Tox Free (TOX). Hydromet is recycling |
| that you might want to look at to add to your | | | | batteries and Dolomatrix recycles light bulbs and |
| portfolio of ethical investments: | | | | similar items. |
| 1. Solar Energy | | | | 10. Energy Efficiency |
| There is a growing solar energy industry that includes | | | | Few companies specialise in this field so you have to |
| solar cell panel and component manufacturers and | | | | choose those who have had relative success in their |
| solar energy providers. Prominent solar power | | | | line of business. Energy efficiency firms help individuals |
| stations are scattered throughout New South Wales, | | | | and businesses become energy efficient and comply |
| Victoria and the Northern Territory. | | | | with local energy regulations. |
| 2. Wind Power | | | | Summary |
| The wind power sector not only specialises in the | | | | Ethical investing, for some investors, means investing |
| generation and sale of power, but also in the design | | | | in industries that promote affirmative environmental |
| and construction of wind turbines. This high-growth | | | | programs, sustainable growth, and good corporate |
| industry has spawned windmill farms across South | | | | governance. Many people still think that investors in |
| Australia, Western Australia and Queensland. | | | | green industries may lose their money in the long run |
| 3. Water Utility | | | | because it is difficult to maximise financial return |
| There has been a growing need for alternative | | | | when taking social ethics into perspective. However, |
| sources of water in Australia because many states | | | | performance wise, it has been proven in Australia and |
| are facing desertification and drought. Ethical | | | | New Zealand that investing responsibly performs on |
| investments have supported companies that operate | | | | par with or better than the broader investment |
| water purification and desalination plants. The | | | | market. |
| Environmental Group (EGL) provides clean water and | | | | The latest Benchmark Report prepared by the |
| clean air solutions. | | | | Responsible Investment Association Australasia |
| 4. Waste Reduction | | | | (RIAA) details the performance of Responsible |
| Ethical investments in the waste reduction and | | | | Investment (RI) in Australia. The following chart |
| recycling sectors have led to the establishment of | | | | shows performance figures for the seven (7) year |
| various recycling centres throughout Australia. The | | | | period ending December 2009*. The main points are |
| number of recycling facilities that recycle plastic, | | | | summarised below: |
| metal, and organic waste has substantially increased | | | | Australian RI share funds enjoyed a stronger |
| after the establishment of a national voluntary | | | | return than the mainstream average. |
| recycling plan by the Australian and New Zealand | | | | International RI share funds also outperformed |
| Environment and Conservation Council. | | | | the mainstream average. |
| 5. Green materials | | | | Balanced Growth RI fund performed slightly |
| The use of green materials for everyday necessities | | | | below the mainstream average. |
| is becoming more prevalent. Papyrus (PPY), for | | | | FUND TYPE AUSTRALIAN SHARE FUNDS |
| example is using waste banana trees to make paper | | | | INTERNATIONAL SHARE FUNDS BALANCED |
| and fire proof doors. | | | | GROWTH FUNDS |
| 6. Alternative Medicines and Health | | | | Average RI Fund 12.64% 8.06% 5.09% |
| Investors that are interested in health and wellbeing | | | | Average Mainstream fund 11.52% 1.43% 5.16% |
| are supporting companies which focus on | | | | *Responsible Investment 2009 prepared by |
| preventative health measures like vitamins and diet. | | | | Corporate Monitor for the Responsible Investment |
| Blackmores (BKL) is an Australian company which | | | | Association Australasia. This report uses Morningstar, |
| provides products like vitamins, as well as information | | | | Fund Manager data and is available at |
| on diet, stress management and other health topics. | | | | Karen McLeod is an Authorised Representative (No. |
| Other cutting edge medical companies include Tissue | | | | 242000) of Ethical Investment Advisers (AFSL |
| Therapies (TIS) which has developed a way to | | | | 276544). We provide investment advice for |
| enhance wound healing and tissue regeneration. | | | | ethically-minded and socially-conscious investors that |
| 7. Carbon Offsetting | | | | are seeking competitive returns. Ethical Investment |
| Many top Australian companies are also helping to | | | | Advisers (AFSL 276544) has been certified by RIAA |
| reduce pollution by participating in the Carbon | | | | according to the strict disclosure practices required |
| Disclosure Project. The project records those | | | | under the Responsible Investment Certification |
| companies that wish to measure and disclose their | | | | Program. See for details. |
| greenhouse gas emissions and climate change | | | | The contents of this article are intended as general |
| strategies. As shareholders and the community are | | | | advice only. No specific person’s |
| becoming more aware of carbon emissions, this sort | | | | circumstances, financial situation or objectives have |
| of project helps to keep companies accountable. It | | | | been taken into consideration. You should not act on |
| also helps identify the lowest emitters or those that | | | | the information provided without seeking personal |
| are actively reducing their carbon footprint. | | | | advice from an appropriately qualified financial planner. |
| Those businesses that want to offset their | | | | Information included from third parties has been |
| greenhouse gas emissions need to use companies | | | | reproduced with their permission. While the source |
| that have large forestry plantations, like CO2 Group | | | | has been verified as reliable, the actual content has |
| (COZ). Investors that are interested in the growing | | | | not been checked for accuracy. Consequently Ethical |
| future of carbon offsetting and carbon emission | | | | Investment Advisers does not warrant the accuracy |
| reduction are investing in such companies. | | | | of the information nor accept liability for any errors in |
| 8. Fuel Cell and Biofuel | | | | the data. |