Socially responsible investing (SRI) is the practice of knowing where your savings go and making sure your money is used ways that match your personal values. There are three main components to socially responsible investing:
- Screening your current and potential investments to remove companies you don't want to support (e.g. weapons or tobacco funding) and adding in companies that perform well in areas that you do support (e.g. clean energy or product safety).
- Community investing as a way "to create jobs, housing, and social services here and abroad while earning returns on [your] investments."
- Shareholder action by using your ownership in a company (however small your share of stock) to encourage positive change within the organization.
1 comments:
A large and expanding number of institutional investors are actively supporting shareholder resolutions on social, environmental, and corporate governance issues and joining investor coalitions, such as the Investor Network on Climate Risk, to make their concerns known about the risks and opportunities associated with issues such as climate change. The expansion of market-rate opportunities and other industry developments are making it easier for a broad range of investors to participate in the expanding field of community investing. Institutional investors are proactively allocating portions of their portfolio to community investing options in order to deepen the social impact of their investments. Investors are also increasingly embracing international micro-finance opportunities to promote positive social and economic development abroad.
Ryan Wegner
Post a Comment