What is Socially Responsible Investing (SRI)?
Socially Responsible Investing (SRI) integrates ethical, environmental, and social considerations into investment decision-making. Investors adopting SRI principles typically avoid industries like tobacco, weapons, or fossil fuels, focusing instead on businesses promoting sustainable practices and social equity. SRI often overlaps with ESG (Environmental, Social, Governance) and impact investing, aligning financial returns with personal values.
Different types of Socially Responsible Investing (SRI)
SRI strategies can vary:
1. Negative Screening: Excludes industries or companies failing to meet ethical standards.
2. Positive Screening: Actively seeks businesses with exemplary ESG practices.
3. Thematic Investing: Focuses on specific themes, such as renewable energy or social equity.
4. Shareholder Advocacy: Engages companies directly to promote better practices. These approaches allow investors to balance ethical considerations with financial performance.
