What are the possible economic benefits of corporate environmental responsibility that Green Century believes may make it preferable for investors?
A. By instituting strong environmental practices, companies can benefit by lowering their costs, reducing wasteful use of energy and raw materials, improving product quality, saving time and money by avoiding litigation and clean-ups, and improving their reputations as responsible corporate citizens. Also, those companies that provide fundamental, long-term solutions to environmental problems (such as those in the alternative energy or organic food sectors) may benefit financially by participating in expanding or new-growth sectors of the economy. When these companies are small, investing in them may involve greater risk than investing in the stocks of larger, more established companies.
