Socially Responsible Investing (SRI), also known as sustainable, socially conscious, “green” or ethical investing, is an investment strategy that consider both financial return and social/environmental good to bring about a positive change.
The three central factors that underlie the measurement of the sustainability and ethical impact of an investment are environment, social justice, and corporate governance (often refer as ESG).
Why should we care about Socially Responsible Investing or Do Good Investing?
Socially responsible investors encourage corporate practices that promote environmental stewardship, consumer protection, human rights, and diversity. Some avoid businesses involved in alcohol, tobacco, fast food, gambling, pornography, weapons or fossil fuel production. By exerting our collective investment power or our power as consumers, we can bring about positive changes to the environment and to our local communities– achieving social benefits desired along with the financial rewards.