Socially Responsible Investing (SRI)
Green, ethical, SRI and ESG funds...the number of labels can be confusing!
You may think that investing in green and ethical funds is pretty straightforward but ethics and green priorities for one person may be completely different for another.
‘SRI’ stands for Socially Responsible Investing. Historically such investors were philanthropic and largely focused on moral considerations at the expense of investment rewards.
Over the last twenty years, ‘ESG’, which stands for Environmental, Social and Governance, has become more integrated with SRI so that instead of having a trade-off between a purely social stance versus a purely financial one, the emphasis is now on improving the long-term performance of investment portfolios AND long-term societal objectives.
By using new data and insights to understand how society will view and solve future problems, it is becoming possible for investors to invest in a way that best aligns with their interests and values.
Investing in a Socially and Responsible way
- It’s easy to invest in green, ethical, SRI/ESG funds.
- It’s simple to switch from your current investment funds to SRI/ESG investment funds.
- Values-based, ethical and religious concerns can be addressed and incorporated into investment portfolios (e.g. areas of concern might include the following to mention but few: tobacco, armaments, gambling, genetic modification, fossil fuel related activities, pornography, alcohol, irresponsible marketing or advertising, animal welfare etc.).
- SRI/ESG investments include those companies dealing positively with pollution, deforestation, waste of resources, water stress, climate change, improving working conditions, health and safety, community engagement, diversity, child labour, bribery, corruption, executive pay, leadership diversity, data security and tax strategy.
Things to think about...
- Green, ethical, SRI/ESG investment portfolios are built to generate the returns required to meet your long-term financial goals and objectives.
- Compare SRI/ESG investment fund returns and charges with traditional investment funds – you will be surprised with what you find!