Have you heard of the Slow Food movement? This popular, worldwide movement started as the preservation of food traditions. But it’s expanded to include other food issues as well. For example, many Slow Food supporters are very interested in the food’s source and preparation, and how that preparation affects the environment. The latter—appreciation for and protection of the environment—is also the basis for a new movement in the financial world calling itself “Slow Money.”
The Slow Money movement was named by Woody Tasch, chairman of the Investor’s Circle, a business investment group. Slow Money, Tasch writes in Ode Magazine, is “a new vision for investing that looks above the top line and below the bottom line [by] put[ting] soil fertility back into the calculus of investing.”
“It’s remarkable, but people who grow their own food, who reconnect with the soil, can immediately appreciate the implications of an economy that doesn’t respect the power of ecology,” continues Tasch.
Tasch and his group invest in companies that show positive growth and solid returns. However, their mission is to invest so that company growth is not at the expense of harming the earth. Also, unlike other investment firms which demand unsustainable financial models for their investors (such as double digit returns every year), companies are rewarded for acting responsibility and growing investments slowly but surely.
Are you interested in doing your own version of Slow Money? First, consider how you can make your investments more socially responsible. Here’s a brief guide on how to invest using socially responsible criteria. Next, vote with your wallet. Reward businesses and products that share your values.
My prediction is that as it becomes more mainstream to understand your impact on the environment the same will carry over into our finances. Already socially responsible investing is experiencing larger growth every year. Now, the venture capitalists are doing the same thing.
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