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Leaders from two hundred nations came together this week in Durban, South Africa, for the 17th annual United Nations Framework Convention on Climate Change. The Kyoto Protocol – the climate change pact, which has been the most comprehensive agreement to date – is due to expire next year, and it has to be replaced by a new agreement.

Much debate and negotiations are currently under way at the conference. International leaders are trying to reach consensus on what further commitments need to be made in order to avert a global environmental catastrophe in the future. Many view this debate, and the new protocol that will be agreed upon (if any), as the most effective way to hold polluters accountable for their emissions, while forcing them to take action to reduce them. No wonder the world is anxiously waiting.

In the meantime, voluntary green investments are showing no signs of losing momentum. More and more companies are putting their environmental consciousness on display. In a time of tight markets and stiffer competition, they have no other choice. And the force that drives them to use green investments to differentiate themselves is highly overlooked, but very influential – His Highness the Consumer.

The fact that environmental initiatives are a powerful marketing tool is no secret. One example, as a recent article in the Financial Times pointed out, is the European oil company Shell, which launched a multi-billion dollar biofuel joint venture in Brazil. The new company is expected to become one the biggest ethanol producers in the world. FT’s list of corporate green-thusiasts also includes BP, which signed a $750 million deal that will expand its U.S. wind farm projects; HSBC, which vowed to refrain from financing polluting power plants fueled with coal fire; and two popular beverage brands, which are both striving to outshine each other in the use of plant-based materials for manufacturing of lightweight bottles.

Among the above-mentioned examples, the rivalry between the two popular beverage companies is most illustrative of how consumer needs and interests dictate the way companies utilise green investments to win more business. Historically, both beverage companies have actively gone after consumer attention using an arsenal of ad tools — from celebs, to holiday campaigns, to sports events, to healthier products. Now green seems like the obvious choice. And it’s fair game if it bears larger environmental and social benefits.

An article in The Times, in the UK, this week reflected on the ongoing Durban summit, claiming that “at the UN, environmental woes cannot compete with economic ones” and, therefore, expectations for a global environmental deal have never been lower. That, unfortunately, might just be the harsh truth that some parties don’t want to hear.

Countries on the brink of economic collapse have more reasons today to say “no” to compliance than they had in Cancun last year and in Copenhagen the year before. That is why looking to international agreements as a stimulus for companies to turn to more environmental practices is not the best way to cope with climate change at this time.

As many polluters have already realised, when it comes to going green, the focus needs to shift from passively waiting for direction from the government to actively winning over the consumer. After all, the key to keeping the economic wheel turning is the customer’s cash. And this key is in consumers’ hands and pockets. Therefore, companies have an interest in keeping their green money churning and their innovative initiatives going if they want to stand out and be seen.

We don’t dismiss the value of international agreement by any means. These pacts are important as they keep nations formally accountable for their actions. They represent the collective intention to merge forces and work together, so no single nation feels that its efforts are an island in the carbon sea. But these international agreements, or lack thereof, should not be viewed as more powerful than voluntary corporate responsibility. A lasting climate change solution lies in polluters’ willingness and ability to effectively employ environmental initiatives on their own terms and strive for eco-innovations that meet customers’ needs.

We need to leave international leaders to focus on solving the global economic crisis, at least for now. Ending the global climate crisis, on the other hand, is a matter of increased sense of individual responsibility among polluters and a growing number of voluntary green investments.

Understanding investment

Investment can seem like an attractive option for increasing return on your capital, especially when interest rates on savings accounts are so low.

Whether you are looking to invest yourself, or for someone to invest your cash on your behalf, there are several factors you should consider before you begin.

How much can you afford to invest?

It is important to recognise that when you begin investing your money you will introduce an element of risk to your capital. Generally the higher the potential for return the higher the risk to your capital, so don’t be sucked in by high rates but consider carefully how the investment would sit with your attitude to risk.

Before you start investing you should ensure that you finances are in order and that you are not investing with money that you can afford to risk losing. For example, will you be able to pay all your debts easily? Do you have a buffer of savings to fall back on? Many experts recommend that you have the equivalent of at least three months wages to fall back on in case of hard times.

Why are you investing?

Before deciding on the right investment option for you, you should have some sort of financial goal in mind. Are you looking to generate an income from your investment, or simply to increase your capital?

Set a time frame within which you can realistically achieve your financial goals, and decide on how long you are willing to commit your capital in order to achieve your desired returns. This will help you to find the right kind of investment for you. If you have goals in mind, you can easily tell when they do not live up to or exceed your expectations.

What type of investment?

There are four main investment options available-

1) Stocks and shares

2) Investment funds (including Unit trusts, OEICs and tracker funds)

3) Investment trusts

4) Bonds

The right one for you will depend on you attitude to risk. For example bonds tend to be a safer option than investing in stocks and shares, but you will be likely to see lower returns. which option is most suitable for you will also depend on whether you are looking to make a lump sum investment or if you want to invest more regularly in smaller amounts.

Diversification

Investment almost inevitably comes with an element of risk, however by diversifying your investments you can reduce risk. Investing in areas of assets that have little in common means that if one area fail it won’t take your full investment down with it. You can diversify your investments by putting money into different companies, markets, assets or types of investment.

Understanding investment can be complex, and you may want to seek professional advice.