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.
Among the activities most SRI fund managers try to avoid are companies who are involved in the following areas:
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
Gender and cultural equality policies
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.
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.
Socially Responsible Investing extras.
videos, case studies & more
Divesting From Oil
Divesting oil from your investment portfolio isn’t easy but it is possible. There are many options including removing oil completely or investing in Responsible Mutual Funds that take shareholder action to make companies more responsible.
Richard Nickerson gives a brief explanation on understanding socially responsible investing (SRI), and an often overlooked concept known as ‘corporate engagement’ — taking SRI to the next level to help make good companies even better corporate citizens.
Responsible Investing: Say On Pay
Understanding Say and Pay and how you can invest responsibly by influencing executive pay and compensation packages.