Socially Responsible Investing

If you’ve begun to question the broader implications of the investment strategy you currently employ or have realized your investment holdings no longer align with your concern for social and environmental issues, it’s time to learn more about Responsible Investing. The term Socially Responsible Investing (SRI), or simply Responsible Investing, applies to an investment strategy that allows individual and institutional investors to hold well-balanced portfolios designed for performance and return without investing in companies whose activities are at odds with specific Responsible Investing tenets.

Learn the basics of responsible investing.

Negative Screening

Among the activities most SRI fund managers try to avoid are companies who are involved in the following areas:

Weapons contracting

Tobacco manufacturing


Nuclear power

Positive Screening

In general, the SRI fund managers will proactively select companies that demonstrate leadership in a variety of areas. These positive screens include the following areas:

International labour standards

Environmental impact

Employee relations

Gender and cultural equality policies

Shareholder Advocacy

SRI fund companies will use all of the available means of shareholder advocacy to encourage companies to become better social performers. They employ an active shareholder approach in conjunction with other socially responsible investors, which includes corporate engagement pertaining to controversial issues. In terms of proxy voting, the majority of SRI fund companies publish their votes after the end of each quarter along with our rationale for each vote.

Community Development

In addition to mutual funds, you can also invest in exchange traded funds (ETF) that represent a specific market sector. ETFs trade on the stock market and represent a basket of companies, often specific to a certain market sector. There are ETFs that invest in wind power, clean tech and other alternative energies.

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