Ethical Fund on Top

Ethical funds or socially responsible investing is a philosophy where investment decisions are taken on the additional basis of a organization’s ethics and its green credentials topped the UK funds chart for the first time.

The Guardian reports:

The Co-operative Insurance Sustainable (CIS) Leaders trust, a fund that buys shares only in ethical and green companies, outperformed other unit trusts in the UK All Companies sector in the year to the end of January.

…despite being limited in its choice of companies, in the 12 months to January 31 it provided investors with a total return of 29.3%, more than double the 13.2% returns produced by the FTSE All Share index and the 13.3% produced by the UK All Companies sector as a whole. Over three years the fund has returned 88.6%, compared with 57.5% across the sector.

What do we do next?

Alan Atkisson writes an article which puts a lot of things in perspective and acts as a guide to the future to the people “in our line of work”. He says, “The phrase “our line of work” refers to people working in a professional capacity on the issues of sustainable development, or in training to do such work.”

He suggests that climate change has hit bit big time for three reasons. One, Hurricane Katrina; Two, Al Gore’s ‘An Inconvenient Truth’ and Third, the Stern Review on Climate Change. Now the situation is in the political and economic realm.

Due to the Climate Change issue, the sustainability field and the professionals working in this field have a great new task ahead. To stop convincing people about the issue and “rolling up our sleeves, and working on scaling up implementation.”

The most important thing is,

…that professionals in sustainability will have to offer in the future is not ready-made solutions, but an ability to improvise, adapt, innovate, and dream up still more visionary-yet-feasible ideas about how to transform a global civilization or rescue ecosystems in trouble. This is going to require even more exertion, more creativity, more risk; celebrating victory and going home is not an option.

Here’s the summary: In the next few years, people who have been working on sustainability, especially where it touches the climate-and-energy nexus, are going to be seriously tested — not by resistance to their ideas, but by the ever-increasing demand for them.

Alan is so right. Even in my simple job things are changing. What was not possible in 2006 is becoming much needed in 2007. The talk is about implementation, about ideas, about what can you do?

When I decided to train myself to work in the Sustainability field at the start of my MBA (almost two years back) most of my friends thought I was a fool, especially from the money point of view.

However, things have changed in the last two years. I can see the momentum building. There is a greater need for people to work in this area and the leaders; both companies and individuals; who will be part of the solution at this point in time will have a great future in the coming years and decades.

Virgin Earth Challenge

Branson and Gore have created the “Virgin Earth Challenge” based on the X-Prize worth $25 million to create a way to solve the greenhouse gas problem.

Flanked by climate campaigners former US Vice President Al Gore and British ex-diplomat Crispin Tickell, Branson said he hoped the prize would spur innovative and creative thought to save mankind from self-destruction.

The prize will initially only be open for five years, with ideas assesbransongore_wideweb__470×3400.jpgsed by a panel of judges including Branson, Gore and Tickell as well as US climate scientist James Hansen, Briton James Lovelock and Australian environmentalist Tim Flannery.

The winner will have to come up with a way of removing one billion tonnes of carbon gases a year from the atmosphere for 10 years, with $5 million of the prize being paid at the start and the remaining $20 million at the end.

The Ansari X-Prize showed what is possible. It enabled Virgin SpaceShip One and space travel for everybody (atleast those who could afford!). This will hopefully create something similar.

The prize denotes the best things about business. The drive, the incentives, the entrepreneurship, the targets, innovation and the ability to solve the greatest problems facing man.

Branson sometime back announced that he would invest almost $3 billion of his profits from the transportation business into companies like Virgin Fuels which can solve the earth’s problems and make money too.

BBC provides a graphic to show the present options in carbon capture.

Carbon capture options

1. CO2 pumped into disused coal fields displaces methane which can be used as fuel
2. CO2 can be pumped into and stored safely in saline aquifers
3. CO2 pumped into oil fields helps maintain pressure, making extraction easier