Give the Future of Green this Holiday Season: Your Investments

As we ponder 2008 resolutions under the shade of our volatile US economy, it might be prudent to consider alternative energy investments as part of re-balancing our portfolios. While the topic of ‘green’ continues to dominate the headlines, it is a good time to put ‘your money where the green is.’

According to a United Nations report in 2006 investors poured in $71 billion into companies in various fields of renewable energy and energy-efficiency technologies. Experts predict that it will rise to $85 billion this year.

While there was a rush to alternative energy investments during the oil crisis in the 1970s and tech bubble in the 1990s, the current sentiment is that these are here to stay – owing to the rising demand for power, concerns about oil resources, and climate change. Renewable sources today only produce only 2% of the world’s energy, but account for 18% of world investment in power generation. The rising popularity of alternative energy technologies and capacity will attract venture capital funding, legislative incentives and business support. Developments of note:

• The European Union is mandating that 20% of energy use comes from solar, wind and other renewable sources by 2020
• The U.S. House of Representatives passed an energy bill mandating that 15% of electricity from private utilities be generated from renewables by the same time
• Governments are providing subsidies, incentives and tax breaks to speed up the development of alternative energy technologies
• General Motors announced that 50% of its vehicles will use alternatives to gasoline within the next five years

You know that when Wall Street rises to the occasion, it is to be taken seriously. Several new exchanged traded funds have been launched to invest in alternative energy companies, as well as a new crop of mutual funds. These include a combination of ‘pure plays’ and ‘market leaders.’

Since the start of the year, this small but growing pool of funds have posted solid returns, and in many cases outperforming the S&P 500. Of note:

• New Alternatives Fund (NALFX)
• Guinness Atkinson Alternative Energy Fund (GAAEX)

Some resources for homework and due diligence - www.energytechstocks.com - www.altenergystocks.com - www.greenchipstocks.com.

There’s still time for a green shopping spree………………….

Sustainable Business Growing in Importance and so is the Link to Reputation – Do You Know Yours?

The 'Call to Action' messages and marketplace research continues to echo in the growing corporate responsibility community – corporate – academia – non-profit - NGOs……..

At a Social Enterprise Conference at Columbia Business School last Friday, a headline message presented at a keynote address by Patrick Cescau - President Group Chief Executive of Unilever - following a special tribute to Anita Roddick of The Body Shop:

“Corporations of the future will not survive unless they adopt and support social innovation and sustainable development objectives”

An advocate of ‘Doing Well by Doing Good’ and Recipient of the 2007 Botwinick Prize in Business Ethics, Unilever has demonstrated commitment to its social and environmental sustainability initiatives via its alliances with The Rain Forest Alliance and World Food Programme – http://www.unilever.com/.

That same week, Business for Social Responsibility (BSR) announced the results of a survey in conjunction with their annual conference in San Francisco where more than 330 participants were polled out of 1350 leaders from 50 countries in attendance - www.bsr.org/conference. Key highlights included:

• 82 percent – private sector executives, NGOs and policymakers around the world say they will make corporate social responsibility a core business strategy in the next five years
• 47 percent said a core reason for focusing on sustainable business is consumer behavior and concerns about reputation
• 31 percent said energy efficiency and renewable energy are at the heart of their corporate climate change effort
• 69 percent said China is the country that will most influence the evolution of corporate responsibility in the next five years

Corporate responsibility is climbing higher and higher on the business and public agenda…..

So, what is the fundamental next step to properly create the CR road map?

We, at Reputation Dynamics, suggest a brand reputation analysis and stakeholder evaluation to provide the strategic foundation for the development of a sustainable, long-term program.