SNK Capital Trust Looks Stylish in Organic Fabrics
SNK Capital Trust believes that the way investors value companies is changing into a model that takes into account sales, profits and dividends but also long-term environmental and social costs. Phrases like “going green”, “eco-friendly” and “sustainable practices” are now much more than just buzzwords to investors.
The U.S. Supreme Court ruled in 2007 that greenhouse gases can be treated as pollutants under the Clean Air Act. This ruling applied to “tailpipe emissions” from cars and trucks, but the precedent will allow the same reasoning to apply to industrial production of carbon emissions. The comments from the ruling suggest that any company or group wishing to appeal would have to scientifically prove that greenhouse gases do not cause global warming. It is unlikely that any company would risk the public relations disaster of even making that argument, irrespective if it was a winnable one.
Companies that prove efficient and sustainable enough to produce smaller emissions than their allowable cap would be able to trade those extra credits for a monetary profit. SNK Capital Trust sees that companies that are directly engaged in the production of alternative energy or other green-related businesses would get several gains; in addition to excess carbon credits that could be sold (generating green energy would not count towards their allowance) they could receive subsidies and tax breaks that would increase their profitability, especially during the first few lean years when development costs run high and sales typically run low.
Not only new companies but new industries will emerge, and new markets and commodities will be formed. Both society as a whole and the markets will determine the true long-term costs of environmental damage and sustainable economic systems. SNK Capital Trust will always be at the cutting edge looking for these market leaders.
