Green Yield

What is a "Permaculture" credit union?

Simple definition: Permaculture = the design form of sustainable living.
[see www.permaculture.net or www.permacultureactivist.net for more]

Back in the late 90’s a group of Pc activists got together to form a credit union - based in New Mexico - and what resulted is a most unique financial institution! Not only are funds invested in the local community, but investments avoid unsustainable practices (see an earlier blog on negative screens) but reward sustainable activities (yep - see earlier blog)

Imagine getting a BETTER loan because your house is OFF-THE-GRID!!!

“Permaculture Credit Union Mission Statement:
The Permaculture Credit Union pools the financial resources of people who believe in the ethics of Permaculture - care of the earth, care of people, and reinvestment of surplus for the betterment of both. We apply those resources to earth-friendly and socially responsible loans and investments.” (http://pcuonline.org/index.html)

Now over 1000 members, $3 million in savings, & $2 million in loans. Minimum deposit $50. PCU sends out a very refreshing newsletter too (One issue has a picture of Greg Peterson & his new Smart Car).

Interest and savings rates are comparable with similar institutions. PCU Visa card available.

The bottom line: An excellent choice for an affordable & green loan and an excellent investment in a more sustainable society.

Mutual Funds would be an excellent way for those of us with very little time to do our research, pick investments, make timely trades, diversify, and keep track of our investments........however:

Over a decade ago when I was young and innocent, I was paging through the portfolio of my new Dreyfus Third Century Fund looking over the list of “socially responsible companies.” I was stunned to find a well known Las Vegas gambling casino corporation listed. I sold the fund immediately (& didn’t see this fund listed with the best known SRI funds anymore - either).

Three years ago this month, Paul Hawken did an exhaustive job researching the over $2 trillion worldwide SRI industry including over 600 funds & discovered that SRI Funds as a whole did NOT invest in portfolios much different than conventional ones. [Socially Responsible Investing: How the SRI industry has failed to respond to people who want to invest with conscience and what can be done to change it.] Its a sad tale.

For example, he listed the 30 top equity holdings by American SRI funds with the 30 companies in the Dow Jones Industrial Average. The 19 companies on both lists included General Electric, Pepsico, Pfizer (Viagra, etc.), Coca-Cola, Wal-Mart, and Exxon-Mobil. This is certainly not a list of SRI heroes.

Also, Coca-Cola was held by 56 SRI funds studied, Halliburton by 23, McDonald’s by 41, Raytheon (weaponry) by 12, and Monsanto by 19.

Hawken also cites examples of how Pax World, the very first SRI mutual fund, held stocks in corporations whose deeds are in direct contradiction of 12 vaunted SRI principles.

While Hawken condemned practically everyone, I assume some of these funds do read their own criteria & follow them (New Alternatives Fund for example). The Natural Capital Institute , which Paul is associated with, lists both the above report AND useful information about a choice group of SRI funds, so we can assume he must now consider some SR funds as acceptable investments. [see http://www.responsibleinvesting.org/]

The good news is that most of these funds have their current holdings listed on their websites, so we can see for ourselves who they invest our money in. As long as we don’t expect to like every listing, it is a decent alternative to conventional funds.

Note: Mutual funds have ticker symbols just like stocks and can be looked up on many financial sites/sections on the web.