What is Socially Responsive Investing (SRI)?SRI is defined by the Social Investment Forum as “an investment process that considers the social and environmental consequences of investments, both positive and negative, within the context of rigorous financial analysis”. More simply put, SRI allows investors to achieve a competitive market return while aligning their money with their values; hence, the industry motto “Do Good and Do Well”.One of the fundamental objectives of the social investment industry is to achieve a higher level of corporate accountability to all their stakeholders, while delivering sustainable value to society at large, as well as to shareholders. The power of SRI is rapidly increasing as more and more investors and institutions become involved. According to the Social Investment Forum, SRI assets under management accounted for $2.29 trillion of all assets under management in 2005, nearly one out of ten dollars under professional management. There are three main strategies that define an investment as social: screening, community investing, and shareholder advocacy. Each of these areas is continually evolving and growing. |
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| More information on SRI history and tenets can be found here. | ||
