Turning Greed To Green
Green Investments Getting Greener
Green not greed is good these days, especially if you’re rich and want to be seen to care. Some clients are increasingly seeking environmentally friendly investments and ways to minimize their impact on the environment. There’s more interest to participate not just because of wanting to be green but also there are opportunities as the world starts focusing on climatic change and starts focusing on alternative energy sources because there will be companies that will benefit from that because governments will have to spend money to get things done.
Wealth managers help rich customers — typically those with assets of $5 million or more — manage their fortunes and their services include investment advice, estate planning and various other tailored services. The most common way that the wealthy participate is by investing part of their assets in clean energy or sustainable businesses. Al Gore, the former U.S. vice president who has pushed for greater awareness of environment issues, is involved in running a fund that seeks to invest in clean energy and environment-friendly businesses, while aiming for high investment returns. It’s these kinds of funds where the rich seek to put their assets.
Philanthropy is also an area where the rich are shifting their attention, as wealth managers are already becoming more involved in how their clients give to charities. Carlson says that the rich are likely the pioneers, as they are willing to spend money at the early stage of a product or technology before its becomes more affordable for the masses, drawing an analogy with the early use of mobile phones by the wealthy.
