Suing Over Sustainable Stocks

Asset managers are supposed to take care of their clients' money. Now the United Nations says they have to take care of the planet while they're at it — or they could get sued. The U.N. report, via Reuters, says, "Money managers have a legal responsibility to raise environmental, social and governance (ESG) issues when tendering investment and advising clients."

In the wake of the global recession, money managers have now been charged with using the estimated $3 trillion in worldwide stimulus dollars towards sustainable and responsible investments. But looking at the performance of green stocks, investment managers might not need any arm-twisting. According to Reuters, the CleanTech Index, which tracks industries like sustainable agriculture, is up 57 percent since March. The US Wilderhill Clean Energy Index was up 72 percent during that period while the Wilderhill New Energy Global Index surged by 66 percent versus a 35 percent increase for the S&P 500.

Goes to show smart investing and green investing need not be mutually exclusive.