Construction Workers
CDFIs & The Environment Overview

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CDFIs & The Environment

It’s time to examine our nation’s environmental policies and the role that community development financial institutions (CDFIs) can play in environmental financing for low-income people and communities. As the Canadian writer and essayist Ronald Wright has stated, “Now is our last chance to get the future right.” In many ways, the CDFI industry is in a very strategic and important position to “get it right” by making sure various environmental policies, remediation, and especially investment in the “green economy” protects the most vulnerable in our society and provides renewed opportunities for those largely excluded from the economic mainstream.

 

To do this, however, we need to understand the practice and advance the policies of what is referred to as triple-bottom-line investing. This investing takes into account the nexus of the economic feasibility of a project; the social benefits and equity generated by the investment; and environmental stewardship that is preserved, enhanced, and protected by the investment—the triple bottom line as a measure of return on investment.
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Historically, the for-profit sector has largely focused on the first bottom line of financial return and CDFIs on the second bottom line of benefits to low-income people and communities. Today few newspapers or news broadcasts fail to include something about global warming’s negative impacts, as well as the opportunities for the emerging green economy. All three bottom lines must now come together. Incorporating concerns for the environment as a decision-making criteria in our daily lives, workplace, and advocacy is no longer a boutique, lifestyle value of the leisure class, modern-day hippies, or elite consumers of presumably more expensive and out-of-reach fruits, vegetables, and meat.

This is an excerpt from The NEXT American Opportunity. The full text can be downloaded as an Adobe PDF Document.