Photo: JamSki, Creative Commons, Flickr
If, as an environmentally-friendly investor, your main concern is global climate change, the latest trend in socially responsible investing may work for you.

Many socially responsible funds are starting to include nuclear holdings in the mix. Why? Because nuclear can be considered "alternative," in that it is carbon neutral. No matter how you feel about waste, potential leaks, and other issues with consideration to nuclear power, this type of energy doesn’t put any greenhouse gases into the air (although the same can’t be said when it comes to transporting nuclear leavings to a waste site).

Part of the reason that socially responsible funds like the Pax World fund (PGRNX) and investments like the Domini 400 Social (DJI) index are starting the shift to nuclear is that many power companies are starting to include it. Smart Money shares one of the biggest reasons that environmentally friendly and socially responsible investing are taking another look at nuclear:

For Pax and some others, though, the changes are a way for socially responsible investors to support companies like FPL, says Pax President Joe Keefe. The Florida utility is the biggest investor in wind technology in the U.S., but most SR funds must exclude it for its legacy of nuclear plants. "We didn’t want to tie one hand behind our back and miss the opportunity to invest in the future," Keefe says.

With the diversity of energy becoming a focus for many companies, some funds are concerned that they will miss out on serious growth if nuclear remains a cause for exclusion.

Ultimately, how you feel about this trend is up to you. What are your own feelings about nuclear power? Are you more concerned about climate change, or do you worry about the waste that is produced? And do you, like Greenpeace co-founder Patrick Moore, believe that nuclear power could contribute to the energy needs of the future without causing too much harm to the environment?

Disclosure: I do not invest in the funds listed above. I’m still trying to work out how I feel about nuclear power.

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