Ethical investments : categories

Socially Responsible Investing (SRI) and Sustainable Investing (SI)

Although it is often used as an umbrella term, there are different kinds of Ethical Investing. You may have heard of Socially Responsible Investing (SRI) and Sustainable Investing (SI). Is there a difference? Yes, there is. SRI can be defined as "Investing in companies which operate ethically, provide social benefits, and are sensitive to the environment" While there are many good socially responsible companies, their products/services do not relate directly to sustainability. A business offering an SI, however, offers products and/or services, which support and enhance the well being of the earth's inhabitants. Their core business concerns renewable energy, recycled products, green building, renewable resources, clean transport and many others.

The desire to "do well by doing good" is common to both sustainable investing (SI) and socially responsible investing (SRI).

SRI came first and still attracts much attention and interest from investors. It can be said that pressure from SR Investors helped:

  • End apartheid in South Africa through corporate divestment.
  • Restrict harmful infant formula marketing by pharmaceutical companies in developing countries.
  • Get companies like General Motors, Ford Motor Company, and Sun Company to sign the CERES Principles, which require efforts to reduce pollution and increase environmental disclosure.
  • Force multinational companies like Nike, which use contract workers, to clean up sweatshop-like conditions and take more responsibility for the welfare of these workers in the new global economy.
  • Encourage Home Depot-the world's largest distributor of home building materials-to phase out old-growth wood from its supplies.
  • Convince drug store chains to phase out mercury-filled oral thermometers.

Indeed, socially responsible investing is a most powerful form of activism as it causes positive change in the way that hurts the Corporate World the most - financially. A broad range of ethical, social and environmental issues can be addressed in this way.

Sustainable Investing, however, gets closer to the environment.

"Sustainability is development that meets the needs of the present without compromising the ability of future generations to meet their own needs." - Our Common Future, the Report of the World Commission on Sustainable Development

SI seeks investments in companies actively working in businesses related to the environment. Businesses which understand the need to look after the earth's resources now so that the future generations will also have resources available to them. There is no hiding from the desire to make profits but there is a clear direction to the business - sustainability.

Green Gold Forestry encompasses both concepts to offer a truly ETHICAL INVESTMENT. There is no doubt that our driving objective is sustainable forestry. Our intention is not only to be sustainable but also to increase the volume of standing trees, thus making a positive impact on carbon offsetting. We are also committed to our social responsibility and accept that we must make a positive impact to the social environment as well as the natural one. We accept every opportunity possible to assist in training, health and education schemes around and within our plantations. We believe in treating people correctly and respecting backgrounds, traditions, cultures and languages. By being a truly sustainable investment, we can do this profitably.

GGF is a company with ethical principals. We believe that the GGF investments:

  • make good returns for the investors.
  • consider the environmental aspects of the business.
  • look at the social implications of the activities.

With the purchase of trees in Peru:

  • we are helping the environment by planting trees and reducing CO2 levels in the atmosphere.
  • we are helping to reforest the jungle by reforesting an acre of deforested land for every acre of your trees we plant.
  • we are providing jobs and training where they are much needed in the Madre de Dios area of Peru.
  • we have social programmes to benefit the health and education of local children.
  • we are offering a profitable investment to people who are conscious of their carbon footprints and want to make a positive and proactive decision to improve the environment.