If one of your financial new year’s resolutions for 2010 is to invest in a more socially responsible way, then you need to read Portfolio 21’s 10 tips for green investing in 2010. Portfolio 21 has been involved in environmentally focused investments for nearly 30 years and its green mutual fund is now more than a decade old.

10 tips for green investing

  • Ecological limits matter.
  • Greenhouse gas liabilities are real.
  • Pay attention to the business model.
  • Follow the revenues.
  • ESG is an integral part of financial analysis.
  • Qualitative, fundamental analysis goes hand in hand with long-term investing.
  • There is no Federal Reserve or lender of last resort for natural resources.
  • Awareness and action are on the rise.
  • Father does NOT always know best.
  • The future is now.
While some of these tips may be standard advice for anyone investing, Portfolio 21 encourages investors to look at the environmental impact of these companies. I particularly like the second tip — greenhouse gas liabilities are real. Without accepting the fact that greenhouse gas emissions are at the root of our climate crisis, investors won’t be able to grasp the concept behind green investing.

As the Portfolio 21 list states, environmental awareness and action are on the rise. The Copenhagen climate summit grabbed media attention around the world, more people know about the importance and benefits of green jobs today than at any other point in history, and the building industry is in the middle of a green boom. These measures are leading to an increase in green investing.

For more information about green investing, visit the Portfolio 21 website.