In today’s unstable marketplace, Manitobans are increasingly careful with their money.  When putting money away for the future, it’s important to consider the sustainability of those investments.  If your investment degrades nature over undermines communities, will it be contributing to a future that is safe for you or your children? Here are a few tips on how to make sure your money supports social and environmentally sustainable economic activities.

Invest locally:

Most of the money invested in stock markets or in large corporate banks circles the planet several times a second with little or no social or environmental accountability. Globalized investments are not only more susceptible to environmental abuse, their lack of accountability and transparency means that their risk level is undeterminable at best.  Keeping your investments in the community is safer and fosters local economic growth, increasing the regional tax base for local environmental initiatives. 
One way to ensure your money is used locally is by becoming a member of your local Credit Union.  As well as financing local businesses and homes, many credit unions have programs to support local environmental initiatives.  For example, Assiniboine Credit Union's Building Sustainable Communities program supports community inclusive and environmentally sustainable initiatives.

Ethical Investing:

Another option for more environmentally sustainable investment is purchase Socially Responsible Investments.  Socially Responsible Investment funds apply sustainability criteria to the companies they invest in.  For example, a recent paper by the Ethical Funds Company cautions against investments in biotechnology and food companies that are heavily committed to genetically engineered (GE) foods, in the absence of GE labelling and better regulation.  Some basic questions asked by ethical investors include:

• Charitable Contributions. How much and what kinds of charities does the company contribute to?
• Community Involvement. Does the company support local programs strengthening the community in which it operates?
• Ecology and Environment. Does the company operate according to sustainable development practices? Is it working to improve its climate change practices?
• Labour Relations. Does the company have a good record with regard to treatment of its employees? Do contractors of the company use sweatshop or child labour?
• Minority Groups. Does the company have a good record in dealing with minority groups?
• Product Safety and Quality. Does the company produce safe, reliable products or services?
• Weapons. Is the company a major military contractor?
• Women. Does the company have a good record on its treatment of women generally and its female employees in particular?

(From Social Investment Organization)

Other Considerations

Whatever you do with your savings it is important to ask questions. Where does the money go? What is the company’s sustainability policy?  Who benefits and how do you know that your investments do not support coercive or discriminatory labour practices? 

Also, the government regulatory environment an important part of sustainable investment.  The recent global financial meltdown has been ascribed to the lack of oversight of transnational corporations and financial institutions.  Ask your MP to make sure that companies are held responsible for their investments.  Ultimately, it is up to citizens to set the framework for what kinds of investments are acceptable in their communities.  Your voice is important, whether you have funds to invest or not.

Finally, it is worth considering if continuous economic growth is realistic in any event.  According to UBC’s Centre for Sustainability, it would take seven planet Earths to sustain the world population at the present lifestyle of the average North American.  It may well be that the global economy has lost the room to grow.  When thinking about your investment plans, ask yourself the question asked by the 1987 United Nations World Commission on Environment and Development: “Do our decisions compromise the ability of future generations to meet their own needs”? If our answer is yes, then our investments do not meet the criteria of sustainability.

More useful information can be found at the following websites:

Canadian Community Investment Network Cooperative is a network of community investment organizations across Canada.
The Global Reporting Initiative provides information about the sustainability of companies across Canada and around the world.
Women and Economic Alternatives
Corporate Knights - The Canadian Magazine for Responsible Business
Canadian Business Ethics Research Network