Monday 15 July 2013

Ask Emerald Knight about Carbon Credits and Other Ethical Investments

Ask Emerald Knight about Carbon Credits and Other Ethical Investments


Climate change is a global game-changer when it comes to investments and money markets. The increasing vulnerability of the world’s ecosystem to natural calamities is causing revenue-generating schemes to shift from the traditional to the alternative. From the stock market, investors are pouring money directly and indirectly into ethical investments like carbon credits and funds that promote sustainable development. 

Carbon credits are a form of currency awarded or sold to companies employing environmentally-sound processes that reduce greenhouse gas emissions and fossil fuel dependence. Sectors that handle carbon credits are usually those that have divested from controversial industries like tobacco, oil and gas or mining. If you want to play your part through socially responsible investing ask companies like Emerald Knight about carbon credits trading and other socially-responsible investments such as renewable energy, clean technology, or forestation projects.

Screening

This method’s goal is to highlight the socially positive and negative industry segments to a client. Negative screening aims to eliminate companies involved in activities seen to compromise the status of the environment. This helps investors avoid industries such as cigarette manufacturing or nuclear energy ventures.
Positive screening highlights projects deemed to be socially responsible. Companies marketing these ethical financial projects (like Emerald Knight Consultants) select sustainable investment prospects such as green farming (i.e. organic cultivation of plants) and carbon credits for their clients to review.

Preference

The preference method also known as best-of-sector strategy, in effect, gives consideration to businesses that usually figure in the negative screening list. For instance, an oil and gas company can still pass the stringent ethical criteria only if it excels in its sector. This could mean that the firm has not violated environmental laws and upholds the rights of workers in its daily operations, among other things..

Shareholder Activism

This method neither excludes nor extends preference to companies by virtue of criteria. Shareholder activism calls for the active engagement of investors or ethically-sound investment handlers in pushing for change in a company. For example, an individual can invest in a venture with practices he finds unimpressive; when he’s in, he becomes a legitimate personality who can tell the company to be more responsible.

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