Building The Green Economy
from Global Exchange

Green Economy Trends
There are a number of trends currently shaping our transition to a more sustainable, or “green” economy.

1. Green building is spreading widely in the construction industry and its price competitiveness is improving.

2. Socially screened funds (now surpassing $2 trillion) are starting to shift money from traditional equity and debt instruments to real estate and green building investments, especially when it benefits non-profit social justice and environmental groups.

3. Within the non-profit community, the techniques of enterprise are gaining widespread acceptance and increasing sophistication.

4. The progressive movement is realizing that merely protesting (narrative about “them”), must be supplemented and eventually replaced with positive examples of an alternative system (narrative about “us”).

5. There is a growing movement focusing on building the local, green economy as an alternative to the transnational corporation, which is not rooted in place and has no way of measuring on its books future environmental devastation.

6. The general collapse of biological systems around the world - topsoil being depleted, glaciers and the polar ice-caps melting, fresh water supplies being poisoned and depleted, extreme weather events increasing, ocean levels rising from warmer temperatures, the ozone layer receding - are causing more and more people to realize the urgency of a transition to conservation economics.

7. Green economy sectors (solar, wind, organic, recycled) are increasingly price competitive and popular. These sectors are well organized on a sectoral basis (such as solar energy associations, hemp industry associations, and wind energy associations).

8. City governments are realizing that downtown infill development, especially along mass transit corridors, makes more economic and social sense than continuing the sprawl that characterized the past half century, and they are passing measures designed to foster that kind of redevelopment.

Green Consumer Trends
LOHAS is an acronym that stands for Lifestyles of Health and Sustainability and describes a $226.8 billion U.S. marketplace for goods and services that appeal to consumers who value health, the environment, social justice, personal development and sustainable living. This is in addition to the $2 trillion socially responsible investment industry.

Environmental concerns, human health, and human rights do not completely define the LOHAS Consumer, however. Their holistic worldview is framed by a belief in the interconnectedness of global economies, cultures, environments, and political systems, as well as the interconnectedness of mind, body and spirit within individuals.

The LOHAS marketplace was first identified in research conducted by Natural Business Communications, publisher of the Natural Business LOHAS Journal. This economic sector is made up of five product/service categories whose offerings improve health, safeguard eco-systems, develop human potential in a sustainable manner, reduce the use of natural resources, allow mankind and the natural world to live more harmoniously. In addition, these products and services are created or conducted in a socially just manner.

The LOHAS categories are:

Sustainable Economy
• Green building and industrial goods
• Renewable Energy
• Resource-efficient products
• Socially responsible investing
• Alternative transportation
• Environmental management

Healthy Living
• Natural, organic, and nutritional products
• Food and beverage
• Dietary supplements
• Natural personal care products

Alternative Healthcare
• Health and wellness solutions
• Acupuncture, homeopathy, naturopathy, etc.
• Holistic disease prevention
• Complementary medicine

Personal Development
• Mind, body and spirit products: CDs, books, tapes, seminars
• Yoga, fitness, weight loss
• Spiritual products and services

Ecological Lifestyles
• Ecological home and office products
• Organic/recycled fiber products
• Environmentally friendly appliances
• Eco-tourism and travel

Understanding the sustainable marketplace helps companies grasp the interconnection of consumer values and products. The opportunities for business are immense, from the development of new types of channels that can better service LOHAS consumers to the invention of cleaner products and technologies. Opportunities exist for businesses to discover like-minded industries with which to evolve new partnerships such as the new green hotels have done with the eco-travel industry. Forging these types of links will ultimately produce new systems of distribution, new outlets for sales, and new technologies for cleaner production.

What is Socially Responsible Investing?
Integrating personal values and societal concerns with investment decisions is called Socially Responsible Investing (SRI). SRI considers both the investor's financial needs and an investment’s impact on society. With SRI, you can put your money to work to build a better tomorrow while earning competitive returns today.

Social investors include individuals and institutions such as corporations, universities, hospitals, foundations, insurance companies, pension funds, non-profit organizations, churches and synagogues. Three key SRI strategies have evolved over the years: Screening, Shareholder Advocacy, Community Investment and Social Venture Capital.

 

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