In June 2007 representatives from the United Kingdom organic sector urged the Environment minister David Miliband not to allow organic food to be contaminated by genetically modified organisms. It is evident according to the Food and Drink Federations organic group that one of the main reasons consumers buy organic is to avoid eating food contaminated with G.M. The government is proposing to increase the threshold for G.M. contamination of organic food from 0.1% to 0.9%. This move is fiercely opposed by the Soil Association who argue that it is not economically sensible for the government to tamper with current regulations given that the organic market is one of the fastest growing areas of the U.K. economy. It has been confirmed by the Soil Association and Organic Farmers and Growers however that they would maintain the current non G.M. Standard of 0.1% whatever is decided by government. The government’s stance is in line with the E.U. regulation recently adopted. Although G.M. companies were consulted by government it was reported that no direct contact was made with an organic business. Which might lead us to conclude that ‘money’ talks.

Whilst the organic food industry is growing fast the same can be said for the global market for organic cotton which is reported to be booming. Consumers are no longer simply eating organically they are wearing organic clothes, using personal care products and equipping bathrooms and bedrooms with textiles made from organic cotton. The fashion industry has an enormous impact on the environment in terms of textiles used; and it could be argued that it is very positive for ethical consumers that designers such as Katherine Hamnett and Stella McCartney are including organic cotton garments in their collections. There is now a greater choice of organic cotton clothes than ever before. At Sonesuk we have an exciting range of baby and children’s clothes designed in the U.K. Organic cotton production is estimated to increase over the next three years as more farmers join existing projects and further planned projects reach fruition. Farming organic cotton is based on a system that maintains and enriches soil fertility without the use of toxic pesticides and fertilizers and genetically modified seeds. All of this is generally good news for consumers that are aware of both what they put into their bodies and what they clothe themselves and their children in. But we should be aware of strong market forces determined by profit and market domination seeking to pursue their own interests to the detriment of others.

Natural products retailers account for half the sales at $25.5 billion and, for the first time since 1999, they experienced double-digit growth at 10.9%.  Internet sales are growing rapidly,  reaching $558 million. Mass-market (food, drug, club and convenience stores) rose 8%; direct-to-consumer sales rose 6.4%.

This could mean that either American consumers are becoming more aware of green products, or the availability of these products is growing, or both – despite the leanings of the U.S. federal government.

Mark Brandon is the author of the Sustainable Log Newsletter and Blog, as well as the managing partner of First Sustainable, an investment advisory catering to socially responsible investors. During February, new subscribers to Sustainable Log can designate $1 to rescue endangered girls, protect endangered gorillas, provide medicine to Sudanese refugees, or one of 36 other great causes through Alternative Gifts International.

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Tags: ecostreet, ethical+investing

Jonathan Clements’ column in the Wall Street Journal Sunday, “Twenty Tips for No-Nonsense Investing” is indispensable for those who seek to cut through the marketing hooey of the financial services industry and really understand what is essential for investing. Since I am not into plagiarism, I will only provide a hyperlink. However, in honor of the fine piece, I want to add a corollary for socially responsible investors.

1. Being socially responsible means more than calling yourself socially responsible. Over and over again, I have said that my biggest challenge is to demonstrate to people that the definition of socially responsible is different to everybody. For some funds, SR means screening alcohol, tobacco, and gambling. For others, it means seeking out alternative energy technologies. For still others, it means devoting 1 percent to community investments. You should first know your definition of socially responsible, and then reflect on how the various investment vehicles jive with your definition.
2. Being socially responsible should not automatically entitle your mutual fund or adviser to a drastically higher fee. Many SRI mutual funds insist that the higher fees are the result of their size. Hogwash! They are trying to capture the LOHAS demographic that is willing to pay higher prices for sustainable products. There are many cost competitive alternatives, including the ones offered by First Sustainable.
3. Investing Responsibly does NOT mean you will sacrifice performance. The best academic studies show that SRI and non-SRI strategies perform about equally. In some years, non-SRI strategies do better. In no case does one strategy consistently or significantly outperform.
4. Screening out the bad actors is not the only SRI strategy. After weeding out any company that has even a somewhat objectionable product or stance, one must wonder if there will be anything left. The answer depends, of course, on how strict your social criteria is. However, you can also choose to pick the most ethically inclined companies in each industry. You can choose companies that show a steady improvement in their ethical behavior.
5. One should agitate for responsible choices in your 401(k). Almost every 401(k) platform makes it extremely easy to add funds if the employees demonstrate that they want them. So, if your company offers no SRI alternative, speak up! With half of investable assets in these qualified plans, it makes a huge difference.

Mark Brandon is the author of the Sustainable Log Newsletter and Blog, as well as the managing partner of First Sustainable, an investment advisory catering to socially responsible investors. During February, new subscribers to Sustainable Log can designate $1 to rescue endangered girs, protect endangered gorillas, provide medicine to Sudanese refugees, or one of 36 other great causes through Alternative Gifts International.

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Tags: ecostreet, ethical+investing