Sunday, January 2, 2011

Green Fund

A 'green fund' is a type of managed investment product that focuses on investing in a 'green' or environmentally friendly manner. This may involve negatively screening companies that damage the environment. However green funds are more suited to positive screening, i.e. actively seeking out companies that are engaged in best practices, companies that actively get involved in environmental remediation and protection projects, and of course companies that produce green technologies e.g. clean energy, bioremediation, recycling, etc. These funds cater to investors who want their investment to have a positive impact on the environment, rather than just blindly maximizing financial returns.

Synonyms: UNPRI, ESG, Green investment, Sustainable funds

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