The basic premise of socially responsible investing is simple: If money makes the world go ‘round, greener, more humane investments can improve the way it spins. Want sustainably managed forests? Provide loans or capital to eco-minded timber companies. Want Monsanto to get out of the genetic engineering business? Buy Monsanto stock and put forward a shareholder resolution demanding the company cease and desist. This isn’t just wishful thinking; social investors can point to many positive efforts like these. And their strength is building. Yet before hailing a new era of green capitalism, it’s also important to understand some of its limitations.

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