SRI - Socially Responsible Investment

Money over everything...?

Key information

SRI refers to investment approaches that apply social and environmental criteria when evaluating companies.

How it works:

• Investors will create a scoring system based on criteria relating to social impact

• Investments are usually made considering the environmental, social and governance (ESG) aspects of a company.

• Excluded companies are dictated by the goals of the investor, some may want to avoid weapons companies where as others could want to support companies that do not pollute excessively.

Sustainable Finance, SRI, ESG, etc. is not just a Trend

• $12 trillion market in 2019, or about $1 of every $4 investing in SRI

• UN’s Principles for Responsible Investment (PRI) has >3,000 signatories & $90 trillion

• Green bond & loan issuance $360 billion globally in 2019

• BlackRock predicts ESG funds to rise >$400 billion over the next ten years

• Unique tools are being created $25 million water bond for Washington, D.C. in 2016

• 90% of millennials want to invest retirement savings sustainably (Morgan Stanley)

• 75% of savers say they want SRI choices (Natixis)

• 75% of millennials consider company values (Sustainable Brands, Nielson)

Source: HBR: The State of Socially Responsible Investing

Source: USSIF

Our favourite video

Source: Julius Baer

If you want more

Guide to Socially Responsible Investing: Principles and BenefitsInvestopedia