We hear the terms “green” and “responsible” investing all the time. But for a lot of people, these terms are unclear or, worse, they seem to have multiple definitions. Many strategies combine social criteria with their green approach; others focus on a very narrow subset of green, such as solar. With still others, it's hard to see, in looking at their holdings, what, if anything, is green about them at all. Within Green Alpha ® Advisors and the Sierra Club Green Alpha Portfolio, our sustainable-investment philosophy is very specific. We mean that we invest in the best companies that are providing solutions to the most critical crises confronting the environment and therefore civilization.
So who are we? Green Alpha Advisors is an SEC-registered investment advisor dedicated to investing in and perpetuating the next, eco-efficient, economy. We, along with our partners at the Sierra Club, believe that the three major macroeconomic tailwinds currently prevailing, 1) the need for sustainable restructuring of the U.S. and world economies, 2) energy and national security and 3) climate change, make a compelling if not imperative case to make investments into the best companies that are leading the way to the minimal-hydrocarbon future. Or, as we call it, into the Next Economy. And by "Next Economy" we mean the whole next economy as it must function to avert eventual collapse: cross-industry, cross-sector, and cross-cap. This means energy solutions, water solutions, smart-grid technologies, basic materials research, agricultural solutions, forestry solutions, sustainable commerce, etc. All of these things are connected; solving for one issue type doesn't make sense when confronted with multi-part problems. We seek the best firms with the most promising visions and add them to the portfolio.
The Green Alpha Advisors team has deep domain experience as environmentally progressive asset managers. We believe that business as usual will prove devastating to both global ecology and the global economy, and that the economy must soon evolve to become environmentally sustainable. This transition has to be massive (pretty much every aspect of every economy), and cover every type of business. Given the scope and inevitability of this transition, there's also massive investment return to be earned. We believe we're on the tipping point of a massive, new, green industrial revolution, and that smart investments in the emerging green economy represent a much safer long-term bet than investments in the old industries and technologies that have led us to the brink.
The world is clamoring for solutions. The companies that provide them will by necessity grow faster than the companies representing the old, fossil-fuel-based economy.
Therefore, Green Alpha Advisors and the Sierra Club have teamed up to create a portfolio that selectively seeks the best of these firms. You can learn more about that portfolio on our website. Also, check out our blog here on sierraclub.org for much more information about green investing and the Next Economy.
-- Garvin Jabusch
