Letters to the Editor
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@John Seiffer
I think green investing is more effective than you're letting on.
A good green fund doesn't just buy the stocks; the fund uses its stocks as leverage to promote environmentally wise decisions and good governance. They push for greater transparency and better environmental information (from both current and prospective investments). They help elect board members who will keep the company on the right path.
I guess if you look at stocks merely as entitlements to a share of corporate profits, and strip away other aspects of ownership, then your analysis makes sense. But stock owners benefit when demand is high. If there are enough green investment dollars out there to be courted (read: if enough people invest in "green" funds), stockholders of all stripes will insist that their companies start courting them.
Lastly, I'm inclined to believe the green fund argument that environmentally responsible companies are better managed in a variety of other ways as well.
Of course, I could simply be rationalizing my decision to cut Winslow's Green Growth Fund a check last month.