Even a year gone since the failure of Lehman, fundamental questions remain regarding the core underlying assumptions of our financial system.

Though currently derivatives trading and black boxes appear out of favour, what will replace them in terms of helpful and productive uses of capital still has yet to be determined. This question was what the Conference on Social Capital Market’s, or SoCap09 tried to give some structure to; while the trend towards sustainable investments and long-term ROI seems to have taken the place of actively managed funds seeking 20x returns.

Read more of this story »

When was the last time we saw so many major companies make a mad dash to become more "eco-friendly"? From oil companies to banks, "green" is becoming pretty hot these days. And it's not just another "consumer trend" either…the financial sector is paying close attention too. "Going Green" is not just about changing your lightbulbs anymore; it's something that has managed to trickle over to the financial market, attracting major investment dollars as well some of the world's most sophisticated investors.

It seems that energy saving alternatives for just about everything are springing up these days. There's always a more 'eco-friendly' version of this, an organic version of that, for nearly every consumer product known to man. So, what about investing? Is there a way to make your investment dollars….greener?

There are plenty of ways for the average investor to start greening their nest-egg now, in a rather more profitable & secure way you might think.

So, where to start? Depending on your investment objectives, you'll probably want to have a little chat with your financial advisor first. If you don't have one already, and investment bankers creep you out, you can find someone that suits your style at SocialFunds.com.

Green Banking

When it comes to choosing the right bank, there are tons of options. All of them are scrambling to offset their emissions and throwing money at climate change, so which are bluffing? Which ones have a widest range of investment tools and financial products? If you're looking for an eco-friendly 'one stop shop' (banking, advising, investing, etc.) you might want to look into the following:

• HSBC - Committed $90 billion to environmental initiatives. HSBC will also help you green your accounts, go paperless for everything, give discounts on eco-friendly products. Bonus: If you pay 3 bills online, they'll even give you a free "Green Kit"!
• Citibank - Just committed $50 billion to fight climate change; $30 billion of that is specifically for financing investments in geothermal, solar, wind and other renewable energy projects and technologies (guess they had to try and top Bank of America)
• Bank of America - Committed $20 Billion to make green loans to "eco-preneurs" with environmentally friendly/sustainable businesses and finance environmental projects around the world. They also recently unveiled plans for a new online carbon trading program. Bonus: Employees get a $3,000 incentive towards the purchase of a new hybrid

I'll give Wells Fargo an honorable mention. This bank has topped it's fair share of 'Eco-Friendly Lists' lately, seeing as 40% of the company runs on renewable energy. As far as services & products for consumers, there is no doubt that Wells Fargo is competitive, however, they like to play hard-ball with fees.

Need Solar Financing?

Besides Bank of America and Citibank briefly touching on this topic, here a few other smaller green lenders that will help you go solar:

• Wainwright Bank -Some green banks will give you loans to slap solar panels on your house at low rates (which helps you save some green for the future)

• New Resource Bank - Get solar just by paying your monthly utility bill

Greener Returns

If you're not skilled trader, odds are you're probably leaning towards a broader, more diversified group of investments. For many American's, this means stocks. Yet again, prepare to be overwhelmed with choices. The most typical, and easiest way to get started, are usually index funds, mutual funds, and exchange traded funds (EFTs). Before you dive in head first and throw money into an investment vehicle, make sure you have a nice, long chat with your financial advisor first. If you don't already have one, you can find one at SocialFunds.com

Just how profitable is this new wave of socially conscious investing? Well, according to an article found in Newsweek, the returns have proved to be rather hefty:

"Wall Street's own change in climate is nothing less than astonishing. "Save-the-planet" investing has suddenly, well, heated up. Four major investment banks - Citigroup, Goldman Sachs, Lehman Brothers and UBS - have recently issued fat global-warming reports looking at stocks and industries likely to gain or lose. Investments in clean energy have more than doubled, to $70.9 billion worldwide, in just three years. In just six years, assets in U.S. "green" mutual funds have soared by 695 percent."
Read more: Newsweek

Determining Investment Objectives

Are you looking for something high growth? Or do you prefer security & risk management with a smaller, more conservative return? Small-cap or large-cap? Do you want fund that is entirely "green" or one that just focuses on alternative energy? Do you just want to avoid investing in cigarettes and alcohol, or do you want stocks that are environmentally sustainable and produce 'fair trade' products? The list of criteria you can apply are endless…Need something to narrow your search? Try the Social Investment Forum.

There's a great research firm called Innovest Strategic Value Advisors. They're an independent third party that just objectively analyzes and ranks companies according to various eco-friendly, social criteria. They've even made a list of the top 100 Most Sustainable Companies in the World.

Environmentally Sustainable Indexes:

• Dow Jones Sustainability Indexes - Includes 300-400 companies said to represent the top 10% of leading companies committed to sustainable practices worldwide.
• ABN AMRO Climate & Environment Total Return Index
• Claymore/LGA Green (GRN) - Claymore tracks an index of 225 large stocks in all the major industries…yes, even mining and oil, but they choose only the "greenest" companies.
• KLD Indexes - Constructs indexes for investors who integrate environmental, social and governance factors into their investment decisions. KLD's indexes are designed to be transparent, representative and investable
• Next-Generation Energy (NGE) Index - Fuel cells, solar power, alternative fuels, energy storage and other supporting technologies

Social Investment Funds

• Winslow Green Investment Funds - Out-performed the S&P 500 and the Russell 2000 for 5 years in a row
• Calvert Social Investment Equity - has outperformed both the typical large-cap blend and the S&P 500)
• Vanguard Calvert Social Index - growth-orientated fund
• TIAA-CREF's Social Choice Equity - mid to large cap fund
• Domini Social Index Portfolio - oldest and largest
• Green Century Funds
• The Spectra Green Fund