Retiring Green
If you have strong social and environmental values, chances are you want those values to carry over into your investment portfolio. That’s easy to do these days as an individual, but what about your 401(k) retirement plan? A range of green businesses, from small organic clothing companies, to big solar companies, are casting about for a 401(k) retirement plan that offers employees green investment options.

Although socially responsible investing (SRI) has grown tremendously over the past ten years, SRI options for retirement plans are still only offered to 20 percent of employees. But that’s changing. Sixty-eight percent of employees say they want SRI options (according to a 2002 Calvert/Harris Interactive survey) and a 2007 Social Investment Forum survey found that 60 percent of defined benefit plan sponsors plan to include an SRI option by 2010.

With $2.5 trillion invested in 401(k) plans in the U.S., there are big numbers at stake, but often only one or two funds to choose from. Paul Hilton of Calvert says, "SRI options are available in one of five retirement plans now and will be available in three of five plans in three years. Corporations are responding to Americans’ desires to invest with their values."

Intel is one multinational that’s offered SRI retirement plan options since 2000. Dave Stangis, director of corporate responsibility, says, "In 2000, we were trying to create a culture of corporate social responsibility and it made sense for us to practice what we preach by including this option in our retirement plan. In addition, Intel is a top holding in many SRI mutual funds and we wanted to reinforce that with our employees. It’s a way for us to be a role model."

Still, most plans give employees only a limited number of funds to choose from, usually from SRI leaders Calvert and Domini. That’s where Social(k) comes in. Retirement-plan consultant Rob Thomas started Social(k) in 2005 to offer the full array of SRI options to 401(k) plans. So far, the online retirement platform offers 140 SRI funds and 800 conventional funds. Thomas’ goal is to offer as many funds as possible and become the one-stop shop for retirement investing. Companies can choose to offer either Social(k) alone or as a second option alongside their existing 401(k) plan.

Thomas says he conceived of the idea at the Natural Product Expo. He heard stories from frustrated green businesses: "My employees look at me and say, ‘I’m working for you because we have shared values, so why are you asking me to buy funds that hold Wal-Mart, Halliburton, and ExxonMobil?’"

What stands out about Social(k) is that it offers a win-win solution for everyone involved. SRI mutual funds love it because they’re now included in 401(k) plans — a huge market for them, one from which they were formerly excluded. Many of the SRI mutual funds either don’t have the time to clear the bureaucratic hurdles necessary to get onto traditional 401(k) platforms or don’t want to pay the 35 to 40 basis points to be there. Only the larger funds, such as Domini and Calvert, have the resources to go through that exercise.

SRI financial advisors love it because it offers them new business. A client with an individual account may also have a business that needs a 401(k). Unlike a plain vanilla 401(k) — the same product offered by dozens of companies — advisors have a clearly differentiated product to sell in Social(k). And employees love it because they can choose from a wide range of SRI funds for their retirement plans. Thus far, most of Social(k)’s customers are small organizations with a sustainable mission, such as MoveOn.org, Organic Trade Association, Portland Energy Conser-vation, SRI funds Pax World Funds, and the Women’s Equity Fund.

Social(k) is a great example of a green business rising to fill an unmet need. Clearly, Americans are asking for ways to put their money where their values are, which is translating into ever greater options for their retirement portfolios. — Rona Fried

Hug Shirt by CuteCircuit will send “hugs”
to other wearers


Clothed Circuits
It may seem hard to believe — especially after you’ve witnessed the big vats of amber-colored ooze with pale, fleshy, "skin" bubbling on the surface — but Suzanne Lee, a senior research Fellow at Central Saint Martins in London, says that there’s no reason why jackets made from bacterial cellulose can’t be sexy.

"The sexiness comes down to what you do with the material. If I was wearing one of these jackets and I didn’t tell you what it was, you wouldn’t know."

In the case of Lee’s "BioCouture" project, that big web of slime screamed to be made into colorful denim, biker, and bomber-style jackets. And yes, they all look hot.

Lee is one of the handful of designers in the world pushing the boundaries of science and apparel. Advances range from utilitarian — answering the big questions like "how can I recharge my iPod" and "how can I stay warm and dry"— to the whimsical, and even magical.

Want a dress that redesigns itself based on your mood? No problem. Want to hug a friend who’s halfway around the world? Done.

CuteCircuit, a U.K.-based "Fashionable Technology" company, has accomplished both. Their "Hug Shirt" was among Time magazine’s Best Inventions of 2006. This Bluetooth accessory for cell phones lets friends share wireless hugs, transmitting heat, pressure, and even the sensation of the hugger’s heartbeats. And the shirts are heartbreakingly cute.

"We’re not just trying to stick wires in clothing," says CuteCircuit’s co-founder, Francesca Rosella, "it’s about making it work like magic so you don’t feel like you’re wearing anything different from normal fashion, but there’s something really special that empowers you to do something amazing."

Another of their creations, the Skirteleon, certainly fits the bill. This dress lets you transform your style by reprogramming its colors and patterns during the course of the day. You can be blue at work, sunny at lunch, red-hot for a date, and a little cloudy in morning — without changing anything but your firmware.

On the more practical side, we can look to advances in exotic textiles that are magical in their own way. Alexandra Fede, an Italian "scientific-stylist," offers us her line of "Anti Violence" apparel. Made from a fabric that’s said to be as light and soft as cashmere, these garments aren’t just stain resistant — they’re bulletproof (9mm and 44 Magnum Full Metal Jacket to be precise). It’s also knife proof, fireproof and wards away pesky grenade shrapnel.

"More demanding people want more from their clothes," says Fede, "they want more than good looks." Sure, but wherever you’re going that requires the Anti Violence suit, count me out.

Here in the U.S., Reusch, a maker of hi-tech gloves for world-class athletes (and wealthy ski fanatics), is taking advantage of new materials to ensure your trip to the mountains isn’t spoiled by something as unfashionable as cold weather.

Their "ThermoTec" glove integrates sensor pads that monitor your temperature and provide the perfect amount of heat. They’re also making big fans in the professional soccer arena, by offering gear made from active membranes that respond to body temperature. Pores in the membrane open to let body heat and moisture out and then close as it cools.

David Banning, president of Reusch USA, points to the many challenges that lie ahead if this type of technology is going to trickle down to the masses. "If you look at a glove, even without the technical issues of not crossing wires, it’s a hard thing to sew. With these high-end technical gloves, you’re not going to take it to a basic factory where your workers are getting 50 cents an hour."

CuteCircuit’s Rosella has experienced similar manufacturing woes. "You have these electronics which are soft and look like a normal thread. If you send that to a factory, they are used to seeing a thread, and if two threads overlap, that’s perfectly fine. But if you have two threads that conduct electricity..." That’s not the sort of shorts people want to buy.

The pain is probably worth it though. Market research firm, Venture Development Corporation, estimates that the worldwide market for smart and interactive textile products will reach $1.12 billion by 2010, representing a growth of 30 percent per year. Another firm, Gartner Research, predicts that 60 percent of people in developed countries will own some sort of "communication garment" by 2010.

So, will it soon be not enough for our clothes to just look nice? Will they have to be more than beautiful? No way, says Lee.

"The idea that if suddenly we can produce a jacket that does everything but make you a cup of coffee, and everyone’s going to want to buy it, really flatly misses the point," she says. "What motivates people to buy clothing is complex, but certainly sex has a lot to do with it. You exclude that at your peril." Rosella agrees, putting it rather bluntly: "I really have a problem with cyborgs."
— Paul Stuart

 


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