What exactly is green investing? What does it mean to you? Ask someone to define it, and most would give similar a similar answer - something along the lines of, "green investing is investing in environmentally friendly businesses." But when you get down to discussing specific companies, many would disagree as to precisely which are "environmentally friendly" and which are not.

This is perhaps best illustrated with an example. Let's say I mentioned an oil company as an investment prospect. Most would dismiss this company as a green investment off-hand. What if, however, I told you that the company had discovered a new technique for extracting oil that did less environmental harm than traditional drilling? Would that make you reconsider? What if I also told you that the oil this technique produces burns cleaner than the highest commonly known grade of oil? Could that potentially change your mind? What if I then added that this technique has the potential to give the U.S. complete energy independence?

Idealism vs. Pragmatism in Green Investing

The dilemma is easy to see. On the one hand, the production of oil can hardly be called an eco-friendly business. On the other hand, weaning the world off of oil entirely in the immediate future simply is not realistic, and this company at least reduces the harm done by oil production. And no one can seriously debate the desirability of U.S. energy independence.

Keep Things in Perspective When Considering What is Truly "Green" Investing

Some might still reject investment in such a company out of principle. This is fine - we all have finite funds to invest, and there's nothing wrong with choosing to focus your investments on more genuinely renewable ventures. Just try to understand the perspective of those who take a more pragmatic approach, and understand that they are part of the solution as well. Moving the world toward a new paradigm of green energy and social justice is a vast and complex problem, and ultimately will have to be an incremental process.

I mention this because both types of green investing are essential: the more idealistic plays on truly renewable sources like wind and solar, and what I would call "compromise" plays, like the example above. Naturally we are well aware of corporate green-washing efforts, and we can make every effort to expose them for what they are. But we may consider investments in companies that are not perfectly green (no business is, after all), but which we feel move us in the right direction. Some ideas, like nuclear energy plays, are highly controversial.No doubt these will produce lively debates, but never forget that we're all in this together.

Be Open Minded With Regard to Socially Responsible Investing

In short, green investing to us is investing in businesses that move us toward a more sustainable global economy. Whether the steps involved are baby steps or giant leaps, all deserve consideration, because ultimately we need all the help we can get. Whether you lean toward the more idealistic or the more pragmatic philosophy of green investing, your ideas are important, and we hope you will join the conversation.