Introduction
Why This Is Written
Because the great effects of climate change are already underway, some people have urged us to divest investments from fossil fuel stocks. I agree with this urgency, but I wanted to find out how easy or difficult it would be for an individual, or a non-profit organization such as a church, to divest. My investigation quickly led me further than I expected. I found that I could let my investment work creatively to combat climate change instead of just sitting there earning for me. This led to a decision to roll over most of my IRAs to invest in a shareholder-advocacy environmental fund.
An investment can work creatively to combat climate change
I am writing primarily for people who, through a combination of frugal living, disciplined investing, and good luck have more in their Individual Retirement Accounts (IRAs) than their immediate needs. This money is a safety package against eventual needs and unforeseen emergencies. In the meantime, however, where should the money be invested? By choosing wisely, you can both do well and do good, keeping your safety investment but letting it work to encourage transformation of the economy.
An IRA is a tax-advantageous investment available to U.S. residents. Therefore, the specifics of this website are relevant only to U.S. residents.
The Contents of the Website
The Essence: It is not enough to divest from dirty companies. It is also not enough to invest in clean companies. Neither of these actions influences the companies or affects the climate. To change the behaviors that affect the climate, investors may own shares of companies that are neither especially dirty nor especially clean, but they must engage with these companies, advocating for more sustainable activity. Some mutual funds, listed here, make this relatively easy. This allows an individual to invest in a transformative way.
What you will find here: A description of what I have found on the internet, and an opinion on what kind of investments will help the climate best. Also, some supplementary material, including Frequently Asked Questions and annotated references.
What you will NOT find: Advice on specific investments that you should make. I am not a professional financial advisor. Any decisions you make are your own responsibility. I hope you consider what I say, but by all means discuss it with your financial advisor if you have one. A section in the supplementary material, described below, has further thoughts on Who Should Do This.
Tips for Navigation
Clicking buttons will help you navigate. Dark buttons with light lettering, such as the CONTINUE button below, take you on the recommended route to the main points. To jump to absolutely any page, hover the cursor over HOME near the top of the screen. (If using a cell phone instead of a computer, use the icon with three short horizontal lines.) A short list of main pages will be shown. Hover the cursor over one of them, and any subpages will be shown. (This allows you to explore the table of contents.) Click on the desired page or subpage to go there. To get back to where you were before, your browser should have a left arrow on the far left near the very top of the screen. Click on this arrow to return to the previous page, as many times as necessary.
Frequently Asked Questions (FAQs) can be explored in a similar way, by hovering over SUPPLEMENTARY MATERIAL, then FAQS. Also, for some basic terms, for example index fund, you will find a link right in the middle of the text, indicated by colored lettering as shown here. You can click on this for more information from the FAQ page. If some of these linked terms seem too basic, please understand that this website is intended to teach and explain, even to beginners.
This website is subject to modification. If I have overlooked something, I will eagerly welcome suggestions, corrections, or additions. Please write me at cory@greenIRA.org.