How Your 401K Can Help Build a Clean Energy Future

Posted on by Social Venture Network

Much like the apartheid movement that preceded it, the fossil fuel divestment campaign started several years ago on college campuses and has quickly spread to foundations, faith groups, and institutional investors. The focus of Divest-Invest is to influence people, groups and institutions to sell their fossil fuel stocks and bonds and invest in renewable energies and other climate solutions.

Focusing on the top 200 oil, gas and coal companies, the Divest-Invest movement has already seen impressive results, with over 180 institutions and 600 leaders pledging to divest more than $50 billion in assets from fossil fuel companies. It’s only a matter of time before others follow the lead of Divest-Invest early advocates. SVN member Tom Van Dyck, founder of As You Sow Foundation, has been actively involved in Divest-Invest since its launch.

His passion for the movement goes back to the 80s when he leveraged his financial acumen to fight apartheid. “We believe in using the capital markets to create social change and gain return for clients simultaneously,” Tom says. “90 companies are responsible for 65% of carbon dioxide in the air today,” he explains, adding that politicians should be placing regulations and a price on carbon. But this isn’t just an environmental issue.

As Divest-Invest signatory Desmond Tutu explains, “Climate change has thus become the human rights challenge of our time.” It is responsible for many of the challenges that the impoverished face, including loss of life, lack of fresh water, the spread of disease and rising food prices. Divest-Invest signatories are joining from all walks of life, including foundations, business leaders, academic institutions and faith groups.

Individual pledge-makers are asked to take three steps: Make no new investments in the top 200 oil, gas and coal companies; sell existing assets tied to those oil, gas, and coal investments within five years; and invest in a sustainable, equitable and renewable energy economy.

It’s about small steps and doing what you can with what you have. Just ask SVN members Timothy and Rose Yee of Green Retirement, which focuses on the 401k market. Helping clients create socially responsible retirement plans is the couple’s primary concern so when they heard about Divest-Invest, they immediately got involved.

Ensuring retirement plans align with client values and avoid fossil fuels is a moral imperative, they say. And it’s a financial necessity, too. For those who wonder if a fossil-fuel free portfolio is less competitive without it, Rose says, “We have five times more inventory of oil, coal and gas than the earth can burn and still survive,” explaining that holding onto stocks that are overvalued can result in stranded asset risk.

Triple the Triple Bottom Line

Posted on by Social Venture Network

It’s well known that women and minority entrepreneurs miss out on some of the opportunities that their white male peers enjoy – the traditional “old boys’ network” is still a powerful source of support and investment money for up-and-coming entrepreneurs. But by overlooking women and minorities, investors are missing out too – and leaving money on the table. Supporting these leaders isn’t just the right thing to do – it also makes good business sense. Today, women are starting businesses at twice the rate that men are.

In the last decade, the number of women-owned firms has grown by 28.6%, compared to a 24.4% increase for all U.S. businesses. In addition, Hispanic and African American women are the fastest growing entrepreneurial segments in the country. Their numbers have increased at rates of 133.3% and 191.4% respectively from 1997 to 2007 – around $14 billion in gross receipts. Even better news: in many cases, these businesses are outperforming more traditional companies.

In fact, one study by Emory University showed that women-led social enterprises generated an average of 15% more revenue than their male-led counterparts. The problem? They’re 40% less likely to receive funding in the first place. This trend applies to minority-owned firms too; entrepreneurs of color receive less than half the equity investments that non-minority businesses do.

At Social Venture Network, we’re working to level the playing field by giving women and minority entrepreneurs access to a network of investors, CEOs and advisors who can help their ventures thrive. We believe in businesses that focus on the “triple bottom line:” people, planet and profit.

The more inclusive the business world is, the more effective it can be in helping solve social and environmental problems. That’s why we launched our “Triple the Triple Bottom Line” campaign via Indiegogo. We’re raising money to offer scholarships and valuable support services to women and minority entrepreneurs – resources that can help them connect to investors, mentors and peers. And we can’t think of a better investment than that.

To find our more about the campaign, watch our Triple the Triple Bottom Line video: