Wall Street: Green is in, in more ways than one

Many of the big investors who call Wall Street home have changed their song to combat global warming. At the head of the pack is Goldman Sachs, who have made several moves in the past few years to flex their environmental muscles, beginning in 2004 with their purchase of 680,000 acres of land in southern Chile near Antarctica, which they made into a nature preserve in collaboration with the Wildlife Conservation Society. Goldman Sachs also established a policy in 2005 which prohibits taking on any projects that significantly affect any critical natural habitats, along with a ban against business with illegal logging companies. In the realm of greenhouse gas emissions, the firm has commited to a 7% cut in harmful emissions from its offices, and is getting into the renewable energy business. In 2005 Goldman Sachs acquired Horizon Wind Energy, which has developed wind farms in half a dozen states and has several more projects underway. Huge world banking players like Citi, J.P. Morgan and Merrill Lynch are beginning to do business that takes enviromental consequences into mind, a 180 degree turn from past business that supported everything from oil rigs to SUV plants.

The greenification of companies with this much financial sway can only improve the country's status as one of the biggest creators of greenhouse gas emissions in the world. Case in point: Two of Goldman Sach's clients, the private equity firms Kohlberg Kravis Roberts & Co. and Texas Pacific Group, recently voiced their intentions to buy TXU Corp., a utility company in Texas that is a champion of greenhouse gas emissions. Goldman's advice to their clients strikes a nicer chord for environmentalists: invest $400 million in alternative energy initiatives, and build only 3 of TXU's 11 planned coal fired plants. These deals pleased environmentalists, and TXU accepted the $45 billion purchase last week.

Goldman Sach has plans underway for their $2 billion "Green Tower," which will be situated across from the World Trade Center site and will be Leadership in Energy and Environmental Design (LEED) Gold certified, meaning that it will be built with recycled materials and incorperate energy and water conservation. The 43 story world headquarters is expected to receive its first tenants by 2009.

The fact that the big money holders are investing in green technology is a huge step for worldwide efforts-- the rest of America and the world follows the money trail, and the money is becoming an ideal role model.