Investing in nature

This is a good time to consider “impact investing,” and if you don’t know why, check the latest statement from your savings account or money market fund. My Vanguard money market fund is paying 0.04 percent interest; a Bank of America savings account pays 0.01 percent.

You don’t need an MBA to understand that the financial return on those investments is close to zero. The social or psychic returns? No better.

Mark Tercek, the president and CEO of The Nature Conservancy, happens to have an MBA (from Harvard), and he spent more than 20 years at Goldman Sachs before leaving in July 2008 (good timing!) to lead TNC. So it’s no surprise that he has introduced impact investing, in the form of interest-bearing Conservation Notes, to the conservancy.

Investors can lend money–minimum $25,000–to The Nature Conservancy to help the organization protect natural resources.They get a modest payback, along with the knowledge that their money is doing good. “It’s an investment-grade opportunity to achieve environmental impact on the ground,” Mark told me, when we spoke by phone the other day. [click to continue…]