Apple becoming favorite among environmental investment options
June 20, 2014 4:34 am
While it has faced severe criticisms in the past about claims of unethical business practices and unchecked carbon emissions, Apple Inc has found itself a target for so called green funds after enacting internal reforms.
Apple’s ranking in the top 19 of Standard & Poor’s 100 index after a growth of 15% this year provided a reward for fund managers who included the stock in their portfolios, but it was the company’s new policies in their manufacturing and labor practices that has made it a candidate for inclusion in the first place. Among the changes that increased its appeal were its usage of renewable wind, solar, and water energy that the company claims is powering 94% of their facilities around the world and cracking down on the instances of underage workers in their suppliers’ factories.
As a result, the company is now the number one holding at the Parnassus Core Equity Fund, the fund that received $1 billion making up the bulk of new green fund money. In 2013, the Parnassus fund proved to be superior to a vast majority of its peers when it went up by 34%. So far this year, it has gained 7% in value, enough to best 87% of other green funds.
Fund managers who consider the environmental impact of companies when selecting investments have so far enjoyed an increased inflow of money. According to the funds analysis firm Lipper, $1.9 billion dollars worth of new investments have been put into these funds as of the end of April going back twelve months. While the amount pales in comparison to the total of $247.6 billion in general equity funds, it represents a significant inflow of 5%.
Playing a part in Apple’s new direction towards dampening their environmental impact is the hiring of Lisa Jackson, the former head of the US Environmental Protection Agency, to supervise the reduction of toxins in Apple products as well as the presence of former US Vice President and environmentalist Al Gore.
Google is another top holding in green funds mostly due to their vast use of renewable energy, but there were also more unexpected selections of companies who have just recently started adopting environmental policies. These include McDonald’s who have set better land management practices and Walt Disney for their cruise ships’ advanced sewage treatment. While these and other companies may still be seen as perpetrators of environmental damages, their policies may be enough to raise their profile among fund managers.
The material has been provided by InstaForex Company – www.instaforex.com
While it has faced severe criticisms in the past about claims of unethical business practices and unchecked carbon emissions, Apple Inc has found itself a target for so called green funds after enacting internal reforms.
Apple’s ranking in the top 19 of Standard & Poor’s 100 index after a growth of 15% this year provided a reward for fund managers who included the stock in their portfolios, but it was the company’s new policies in their manufacturing and labor practices that has made it a candidate for inclusion in the first place. Among the changes that increased its appeal were its usage of renewable wind, solar, and water energy that the company claims is powering 94% of their facilities around the world and cracking down on the instances of underage workers in their suppliers’ factories.
As a result, the company is now the number one holding at the Parnassus Core Equity Fund, the fund that received $1 billion making up the bulk of new green fund money. In 2013, the Parnassus fund proved to be superior to a vast majority of its peers when it went up by 34%. So far this year, it has gained 7% in value, enough to best 87% of other green funds.
Fund managers who consider the environmental impact of companies when selecting investments have so far enjoyed an increased inflow of money. According to the funds analysis firm Lipper, $1.9 billion dollars worth of new investments have been put into these funds as of the end of April going back twelve months. While the amount pales in comparison to the total of $247.6 billion in general equity funds, it represents a significant inflow of 5%.
Playing a part in Apple’s new direction towards dampening their environmental impact is the hiring of Lisa Jackson, the former head of the US Environmental Protection Agency, to supervise the reduction of toxins in Apple products as well as the presence of former US Vice President and environmentalist Al Gore.
Google is another top holding in green funds mostly due to their vast use of renewable energy, but there were also more unexpected selections of companies who have just recently started adopting environmental policies. These include McDonald’s who have set better land management practices and Walt Disney for their cruise ships’ advanced sewage treatment. While these and other companies may still be seen as perpetrators of environmental damages, their policies may be enough to raise their profile among fund managers.
The material has been provided by InstaForex Company – www.instaforex.com
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