When people hear the term green investing, they often dismiss everything that follows as tree hugger stuff. After all, investing is about making money and not being too concerned about the environmental impact companies have in making it. However, there has been a shift in both the board rooms of major corporations and the portfolios of investors, toward getting more green, only now they’re not talking about money.

Green investing involves putting money into companies that actively promote environmental responsibility. In a way, it turns some of the traditional criteria used for investing upside down. But will green investing actually put any green in your wallet? In this article, we’ll take a look at green investing from both sides of the argument. (The term green investing is subjective. Find out how this impacts green investors in Forget Green Stocks, Green Will Do .)

Old Ways

The traditional economic approach toward the world’s environment is largely centered on generating a profit. Trees are made to be cut down and sold, land is made to be developed, and animals (when they are considered at all) are either raised to sell or (in the case of rare fish, birds, amphibians, etc) are treated as impediments to deforestation and land development. Most credible experts agree that this approach to the environment has contributed to a host of environmental problems, including global warming, pollution, the extinction of some animal species, deforestation and drought.

Seeking to Solve Problems

If this shift in corporate and investor focus seems odd, consider that solving the world’s environmental problems is big business. Efforts to reduce dependence on fossil fuels have spawned a host of enterprises ranging from wind farms to alternative fuels — and these aren’t pie-in-the-sky efforts. For example, in 2007, legendary oil man T. Boone Pickens launched a bid to build one of the biggest wind farms in the United States. Energy giant General Electric also participates in the design and manufacture of wind turbines, while other major energy companies have partnered with the U.S. Department of Energy to develop clean coal technologies. Toyota (NYSE: TM ) and other big companies are already selling hybrid cars, and most major auto manufacturers are racing to develop the next generation of fuel technology, with ideas ranging from engines that deliver dramatically increased gas mileage to hydrogen fuel cells that forgo gasoline altogether. (For more on these kinds of companies, see Top 10 Green Industries .)

Other companies are reclaiming brown field (abandoned or underutilized) industrial sites, designing energy efficient appliances, creating new products from recycled materials, engaging in sustainable farming practices, and developing methods to reduce air pollution. These companies are all looking for ways to solve problems, operate in more environmentally friendly ways and run profitable enterprises. (To learn more, see Clean Or Green Technology Investing .)