Socially responsible investing (SRI), also known as Impact, or ESG investing, is an investment strategy which seeks to consider both financial return and social good. Common themes for socially responsible investments include avoiding tobacco and defense stocks (negative screening), or seeking out companies engaged in social justice, sustainability, etc. (positive screening).
NYT – How To Invest With A Conscious And Still Make Money - Gone are the simple days when investing with a conscience meant excluding alcohol, tobacco, and firearms from a portfolio. Today’s impact investors want their investments to align with a more rigorous standard of good while achieving a maximum return. (Read more)
NYT – Issuing Bonds To Invest In People - The organization Social Finance US helped a children’s agency in Connecticut set up a social impact bond with specific goals. A group of private investors put up $11.2 million to fund the bond and set specific goals in order to help their clients achieve a better quality of life. (Read more)
Forbes – How To Align Your Investments With Your Moral Compass - The organization Social Finance US helped a children’s agency in Connecticut set up a social impact bond with specific goals. A group of private investors put up $11.2 million to fund the bond and set specific goals in order to help their clients achieve a better quality of life. (Read more)
Forbes – New Issue Areas Attracting Impact Investors - In recent years, we have seen an awakening of consumer power where consumers are now able to express personal values through their investments. More and more people are realizing that their investment dollars have the ability to improve the world while earning a financial return. (Read more)
Forbes – When Investing Is More: Three Ways Impact Investors Incorporate Self - Impact investors are passionate about knowing not only where their money is going, but what it is doing. What sets impact investors apart from conventional investors is the fact that investing is more than financial returns – it holds value beyond numbers on a spreadsheet. (Read more)
Barron’s – SRI, Impact Investing Growing Fast
– Demand for sustainable, responsible and impact investing increased by one-third between 2014 and 2016. SRI now accounts for $8.7 trillion professionally managed assets in the U.S. (Read more)
The Forum for SRI - SRI Basics - SRI investing can not only help you with preparing for whatever the future may hold, but also does it in a responsible manner that has a positive societal impact. (Read more)Global Impact Investing Network - What You Need to Know About Impact Investing - Impact investing, like SRI investing, is a way for investors to secure your investments while at the same time generating social and environmental impact. (Read more)
Socially- Responsible Investing: Earn Better Returns From Good Companies
- Socially- responsible investing is not just about feeling good about where your money is invested but also is arguably leading to better returns. Why is this? Companies that are more aware about ESG risks are producing higher returns and lower risks for companies because they are taking a long- term, sustainable approach. 84% of millennials are interested in SRI, according to Bloomberg, indicating that demand for these funds will only increase. (Read more) Does Socially Responsible Investing Make Financial Sense?
- Wall Street Journal created an interesting debate with two people that have differing views on SRI. With the rising popularity of ESG investing, there is the remaining question on whether or not it pays off. Traditional investing focuses on tangible measures including profits and growth, so those measures already being reflected in the stock prices. On the other hand, socially responsible investing is an intangible asset to the company, so this leaves room for opportunity for investors. (Read more)
SRI Assets grew 33% since 2014, with $8.7 trillion assets under management. Now there is a growing variety of investment products to offer socially conscious investors, including Mutual Funds, Exchange Traded Funds (ETF), Community Loan Funds, and social venture capital. Below I’ve linked several articles, which help explain why SRI is important to the economy.