Monday, April 21, 2008

Socially Responsible Investing

After the Exxon Valdez


Socially responsible investing (SRI) in the United States is now growing at a much faster pace than the broader universe of all investment assets under professional management (Report on Socially Responsible Investing Trends in the United States, SIF). From 2005 to 2007, SRI assets increased more than 18 percent, while all investment assets under management edged up by less than 3 percent.

SRI is a broad-based approach to investing that now encompasses an estimated $2.3 trillion out of $24 trillion in the U.S. investment marketplace. SRI recognizes that corporate responsibility and societal concerns are valid parts of investment decisions. You may also hear SRI-like approaches to investing referred to as mission investing, responsible investing, double or triple bottom line investing, ethical investing, sustainable investing, or green investing.

For more information, go to the Social Investment Forum

4 comments:

Ron Robins said...

Good to see this post on socially responsible investing!

Seeing your interest in this subject, I thought that you might like to know about my site which covers the latest global news and research related to green and socially responsible investing. It's at www.investingforthesoul.com

I've been following this subject for about forty years and I feel a real sense of joy that it is now going mainstream.

Best wishes, Ron Robins

Richard Badalamente said...

Ron -- thanks for pointing out your site. You have undertaken a most worthwhile endeavor.
Richard

Ron Robins said...

My pleasure. Thanks for looking at my site.

Take care, Ron

Ryan said...

I think the following factors are key to the robust growth of SRI: Money managers are increasingly incorporating social and environmental factors into their investing practices, acknowledging the demand for social investing products and services from institutional and individual investors, socially concerned high-net-worth clients, individuals seeking SRI options in their retirement and college-savings plans and “mission-driven” institutions such as foundations, endowments, labor unions, and faith-based investors. New products and fund styles are driving growth in socially and environmentally screened funds, especially ETFs and alternative investment funds such as social venture capital and double- and triple-bottom-line private equity. A growing concern about climate change and its risk for portfolios is intensifying the interest in SRI among money managers. Investor demand is growing for portfolio opportunities in clean and green technology, alternative and renewable energy, green building and responsible property development, and other environmentally driven businesses.

Ryan Wegner