There are many simple things we can do to make a difference for our environment. Some examples include composting, using a reusable travel mug and turning off the tap while brushing your teeth. Do you know that you have investment options that can further the protection of our environment and promote sustainability. If you have money invested for your retirement or any other goal, why not use your capital to invest in companies that respect our environment and maintain socially responsible practices. The choice is yours!
What is Socially Responsible Investing?
Socially Responsible Investing is also known as sustainable, socially conscious, “green” or ethical investing. It includes any investment strategy, which seeks to consider both financial return and social good to bring about positive social change. ESG is also a common acronym in this space, which refers to companies using environmentally, socially and governance responsible practices.
Socially Responsible Investing (SRI) is a revolution that is being driven by forward- thinking investors who are looking to align their investment portfolios with sustainable opportunities. These opportunities are becoming more readily available.
Several Mutual Fund providers are creating SRI portfolios that include carefully selected companies that provide both a financial opportunity and satisfy their specific SRI screening criteria. SRI providers are also focused on building the future, by encouraging and helping companies to adopt socially, environmentally and governance responsible practices.
Do I have to sacrifice Investment Returns to make Smart Investment Choices?
Choosing to go with SRI portfolios does not mean you have to sacrifice investment performance. The choice to include companies in your portfolio that respects the environment, capitalizes on their workforce and have good governance, clearly have improved chances of achieving strong economic and financial performance. By using a clear SRI criteria to find and achieve quality risk-adjusted returns and drive improved ESP performance, a win-win opportunity is created for investors and society as a whole.
Socially Responsible Investing is rapidly growing in popularity and so are the number of options available to investors. So if you want to make a difference by investing in companies that make it a priority to protect our environment and use sustainable business practices, now is the time to explore the possibilities.