Newspaper Articles

Newspaper Articles: 'My Favourite Share', first published Sunday Independent, 5 October 2005

“It isn’t easy being green” crooned Kermit the frog, star of the Muppet show all those years ago. Certainly when my own finances were put under the spotlight a few years ago it made me pause for thought, and think more carefully about my own investment decisions. At that time many people came knocking at the door with all kinds of investment proposals, with or without business plans. Since then I’ve invested in funds that take on board environmental and social issues. Two such funds are available to investors in Ireland are the Dolmen Green Effects Fund and the Friends First Stewardship Fund. Both funds have performed well over the last two years. This shows that environmental sustainability and good business choices can go hand in hand.

The Dolmen Fund chooses companies from around the world. Some of them are well known like the Body Shop which manufactures and sells naturally based cosmetics, skin care and hair products. Ricoh is perhaps best known for making photocopiers. The East Japan railway company is perhaps more interesting. It runs the famous Japanese bullet train service that are the fastest commuter trains in the world. Shimano makes bicycle, snowboarding and fishing products, and is capitalising on a boom in leisure time interests. Starbucks would many as a surprising inclusion, but they have made a commitment to sourcing Fair Trade coffee in recent years. Gambro is a medical technology and healthcare company that delivers blood and cell related products and services. Fannie Mae is a financial company that provides mortgages to low and middle income Americans. The Green Effects fund chooses from a basket of around twenty companies.

The Friends First Stewardship fund is a much larger fund. While the Dolmen Fund concentrates on picking companies using positive criteria, the Stewardship Fund tries to ensure that negative activities are screened out. They rule out investment in nuclear power, armaments and exploitation of developing countries and several hundred companies are included in the index. Companies that exploit animals are also excluded from the fund. The fund also includes Vestas wind Systems that designs and manufactures wind turbines. Many of the companies manufacture products that we use every day. Marks and Spencer and Tesco are included. Some are more exotic, such as the Swatch group that makes cheap and fashionable watches. Estee Lauder is also represented, as their beauty products are not tested on animals.

It’s interesting to see that the National Treasury Management Agency (NTMA) that invests on behalf of the Irish Government does not take into account any ethical criteria in the selection of their companies. It seems curious that the NTMA invests in tobacco companies, when some of the revenue will be used to pay for the health costs of those suffering from the health effects of smoking. Likewise they could surely avoid significant investment in the arms industry. In some countries Pension Funds are obliged to offer ethical choices to consumers.

If I were to pick a favourite share I guess it would be one of those companies that are looking at energy sources that will supply our needs once the oil runs out. Solarworld that generates solar power might be one choice. Energy Conversion Devices is another company that is at the cutting edge of technology. They’re working on technology that can generate hydrogen from water. Their shares have trebled in value over the last year. However remember that I’m involved in politics, not financial advice. As the ads say, values can fall as well as rise!

Page last updated 2 March 2006

Ciarán Cuffe is a TD for the Dún Laoghaire Dáil Constituency. Ciarán can be contacted at Dáil Éireann, Kildare Street, Dublin 2 or 96 Patrick Street, Dún Laoghaire Tel. 284 6060 or 618 3082, Fax 618 4341, Email Ciaran CiaranCuffe.com