Socially Responsible Investing (SRI)

Socially responsible investing is the term for a new class of investment which have environmental, social or ethical value projects at their core. This means the investments deal with the integration of environmental, governance and social criteria into the traditional investment decision making process. Whether large institutions or individuals, SRI investors believe in using economic and market levers to encourage corporate responsibility, environmental awareness and positive social change. Social investment allows large institutions and individuals alike to make investments that are consistent with both their social and financial goals – there is no need for SRI investors to sacrifice profits over principles

Ethical investing covers a wide and growing range of products, from bamboo plantations, teak forestry, crops that can be converted into bio-fuel to stocks and bonds which can be traded on the carbon offsetting market. All investors seek a competitive financial return on their investments, and the good news is that it is possible to consistently achieve returns with an ethical investment.

SRI Investing is an ethical investment approach, where investors choose companies and projects based on how they conduct business, weighing both their commitment to corporate and social concerns and their ability to deliver profits. The overriding aim is to avoid investing in industries with harmful or negative effects like oil, tobacco, gambling or weapons manufacturing. Environmentally friendly and progressive companies tend to be among the most popular investments, like corporations that promote natural energy, or small businesses that aim to develop surrounding communities. In other words, socially responsible investing is reasonably consistent with the investor’s own personal values.

By making an ethical choice, investors are also advancing a company’s bottom line and in turn, generate long-term profits for themselves and other shareholders. Research has found that SRI funds over a ten-year span have significantly outperformed those on the stock market. Since socially responsible investments are made with long-term goals in mind, they provide more stable returns than traditional stocks and in many cases, property

In the last decade, ethical investing has caught the attention of an increasing number of corporate investors, who are seeing the value of incorporating environmental and socially responsible practices in their businesses, and taking into consideration environmental risks and climate change when producing and distributing products. Institutions—like universities, hospitals and even insurance companies— have become the largest and fastest-growing segment of investors playing on the SRI field.

Emerald Knight has a list of carefully chosen SRI opportunities to fit your social, environmental and investment criteria.

To find out more contact us today.