Any investment strategy combining both financial performance and social/ethical impact.
"Social investment" redirects here. Not to be confused with Social investment theory.
Sustainable energy is one of many forms of sustainable investing.
Socially responsible investing (SRI)[a] is any investment strategy which seeks to consider both financial return and social/environmental good.[1] The areas of concern recognized by the SRI practitioners are sometimes summarized under the heading of environmental, social and governance (ESG) issues: environment, social, and corporate governance.
Impact investing is subset of SRI that is generally more proactive and focused on the conscious creation of social impact through investment. Eco-investing (or green investing) is SRI with a focus on environmentalism.
In general, socially responsible investors encourage corporate practices that they believe promote environmental stewardship, consumer protection, human rights, and racial or gender diversity. Some SRIs avoid investing in businesses perceived to have negative social effects such as alcohol, tobacco, fast food, gambling, pornography, weapons, fossil fuel production or the military.[2]
Socially responsible investing is one of several related concepts and approaches that influence and, in some cases, govern how asset managers invest portfolios.[3] The term "socially responsible investing" sometimes narrowly refers to practices that seek to avoid harm by screening companies for ESG risks before deciding whether or not they should be included in an investment portfolio.[4] However, the term is also used more broadly to include more proactive practices such as impact investing, shareholder advocacy and community investing.[5] According to investor Amy Domini, shareholder advocacy and community investing are pillars of socially responsible investing, while doing only negative screening is inadequate.[6]
Some rating companies focus specifically on ESG risk ratings as they can be a "valuable tool for asset managers".[7] These ratings firms evaluate companies and projects on several risk factors and typically assign an aggregate score to each company or project being rated. The firms publish reports of their ESG risk findings.
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^Hirst, Scott (2016-10-01). "Social Responsibility Resolutions". The Harvard Law School Program on Corporate Governance Discussion Paper. No. 2016-06. {{cite journal}}: |volume= has extra text (help)
^C. Logue, Ann. Socially Responsible Investing for Dummies. Wiley. p. 196.
^Lemke and Lins, Regulation of Investment Advisers §2:158 (Thomson West, 2014)
^Sullivan, Paul With Impact Investing, a Focus on More Than Returns, April 23, 2010
^Bradley, Theresa Finally, socially responsible investors can measure their impact, September 24, 2011
^Domini, Amy (14 March 2011). "Want to Make a Difference? Invest Responsibly". The Huffington Post. Retrieved 26 November 2011.
^"ESG ratings are not perfect, but can be a valuable tool for asset managers - KPMG China". KPMG. 2020-10-07. Archived from the original on 2020-11-29. Retrieved 2021-01-26.
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of social impact through investment. Eco-investing (or green investing) is SRI with a focus on environmentalism. In general, sociallyresponsible investors...
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event-driven investing. It was founded in 2001 by Barry Rosenstein. JANA engages in traditional shareholder activism and sociallyresponsibleinvesting. In the...
history of individual investors using sociallyresponsibleinvesting to express their values exists, and such investing behavior is usually defined by the...
enterprises, who in turn, by investing borrowed funds in socially beneficial initiatives, deliver investors measurable social returns in addition to traditional...
as sociallyresponsibleinvesting (SRI), this practice is more accurately in the case of Ave Maria Mutual Funds called morally responsibleinvesting (MRI)...
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incorporating environmental, social and corporate governance factors into investment practices across asset classes. Responsible investment is a process that...
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"leader in sociallyresponsibleinvesting" (SRI). Walden Asset management employs in-house research to make its investments and also invests in commingled...
makes use of traditional methods of sociallyresponsibleinvesting (SRI) to have a positive environmental and social impact while aiming to outperform standard...
ethical guidelines, the creation of an ethical workplace climate requires "socially harmonious relationships" to be embedded in practice. The proof of effectiveness...
causing the bond to become more or less valuable. In cash investing, money is typically invested in short-term, low-risk investment vehicles like certificates...
Natural resource economics National accounts Robert Hugh Gray SociallyresponsibleinvestingSocial return on investment Sustainability measurement United Nations...
Retrieved 9 December 2018. Newhard, Ali (23 July 2018). "This sociallyresponsibleinvesting platform considers how companies make their money". Business...
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environmental, social, or ethical investment funds. By investing selectively based on values, ethical banks can promote socially/environmentally responsible companies...
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