An effective way to make your money speak loudly for the environment is to invest it in a socially responsible company or mutual fund. So instead of simply using investments as a vehicle to make money, you can use RRSPs to help make a difference in the world.

Socially responsible investment (SRI) is the process of selecting or managing investments according to social or environmental criteria, and is rapidly growing in popularity. As of June 2002, the Social Investment Organization (SIO) estimates there was approximately $51.4-billion in socially responsible investment assets in Canada. There are only a handful of purely green or sustainable development funds in Canada, which are described on the SIO website.

Many companies that actively practice sustainability are also economically strong, proving it is possible to be both green and competitive.

As an investor in the stock market you can choose a wide variety of places to invest your money. Fortunately, some investment agencies help take the guesswork out of this task by screening companies and funds using a range of environmental and social criteria.

Suppose you decide to invest in an oil and gas company. This company then uses your money to invest in its own operations. If the company makes a return or profit, then you as a shareholder also share in the return. The degree to which you capitalize on the company's profits depends on how many shares you purchased in that specific company. If you buy a certain number of shares within a company, it gives you the right to make suggestions on how the company should operate. This practice is known as shareholder advocacy.