Possible steps include financing small farmers and shunning commodity futures.
"It's hard to figure out who to blame for the food crisis," says Lloyd Kurtz, principal at Nelson Capital Management, a private money-management firm in Palo Alto, Calif., via e-mail from Malaysia. "Social investment has been most influential when there was an actor that could be identified – e.g., the tobacco companies, the South African apartheid regime, etc. But the causes of the global food crisis are multifaceted.… That's probably why you haven't seen a coherent response from the social-investment community."
But some social investors are trying to find ways to tackle a crisis that has pushed an estimated 130 million people into hunger. In June, the Interfaith Center on Corporate Responsibility launched an initiative to tackle food-related issues and propose investing guidelines for the 275 institutional investors in its membership. The project aims to encourage sustainable agriculture worldwide.
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