Socially Responsible Investing (SRI), also known as “Ethical” or “Green” investing, bases itself around the foundation of avoiding investments in companies that produce products such as weapons, gambling, tobacco or alcohol. Instead a person looking to partake in Socially Responsible Investing would align their investments with companies where ethical & socially conscious themes such as environmental sustainability and social justice are in the forefront.
Socially responsible investing considers environmental, social and corporate governance, also known as ESG criteria. These criteria help many socially responsible investors decide which companies or funds to invest in. This includes companies that respect the environment, treat their employees and suppliers fairly and promote ethical policies. SRI works the same way as any other style of investing. But SRI adds company ethics and social responsibility into the equation, instead of simply putting your money into securities for growth. SRI tends to follow political and social trends, this means they’ve been dedicated to women’s rights, civil rights and anti-war efforts in the past. Now, socially responsible investors’ focus has shifted to mostly sustainable solutions to 21st century challenges. This includes climate change and ethical business practices.
We’ll start by identifying the level of risk you’re willing to take on. We are happy to have a conversation with you regarding your income and any current investments. Then, we can define what “socially responsible,” “sustainable” and “impact” mean to you. Do you want to invest according to green energy or more in female-led companies? Think about your moral, ethical, religious and social values. We’ll take a look at individual companies and investments by looking beyond financial statements. Then we’ll see how they measure up with their potential to impact a specific cause or movement.