LA Times investigation leads to investment rethink by Gates foundation.
Friday, 12 January 2007 09:08
The Guardian is reporting that Bill and Melinda Gates are reconsidering how their foundation invests its money after the LA times found that much of the income of the foundation comes from investments that cause some of the very problems the foundation is supposed to be fixing!
Its about time this kind of scrutiny is applied, Any investor that is investing blindly of the ethics of their investments should be being held responsible for the crimes and misdemeanours of the companies they invest in. This in particular applies to the investments of foundations that are supposed to be doing good!
Hopefully Bill and Melinda's prompt reconsideration of this will cause other foundations to review their own practices.
Even better would be to remove the wall that is often erected between the investments of the endowment and the philanthropic side and start actively considering how their investments can be used to drive positive change, for example at this time investing a foundation's assets in renewable energy will drive the move towards climate neutrality far quicker than donating the typical 5% return (over inflation) that the investments generate.
And ... as many studies have shown, ethical investments are consistently delivering as good returns as unethical or neutral investments, so there is no need for a sacrifice to be taken in the amount available for donations.
(Read on for the full story from the guardian)
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