Socially Responsible Investing - SRI
Socially responsible investing is an investment strategy which combines the intent to maximize both financial return and social good. In general, socially responsible investors favor corporate practices which are environmentally responsible, support workplace diversity, and increase product safety and quality.
Socially responsible investing has been around since the first investor took a stand against profit at any cost. The Quakers of America boycotted the slave industry, investors during the 1970’s boycotted South African investment opportunities because of apartheid and many people have insisted on not investing in tobacco, nuclear technology, and defense, to name only three.
SRI is also known as “double bottom line investing” because not only are people looking for a good investment, but also one that meets their particular moral, religious, or social considerations. Some SRI issues are more popular than others. The list below demonstrates how "screened portfolios", wherein money is rejected under socially responsible guidelines, deal with some popular SRI issues. The higher the percent, the more socially responsible portfolios would accept or reject an investment purely because of that issue.
The percent of screened portfolios that look out for the following issues:
- 97% Reject companies that support the gambling industry
- 86% Reject companies that support the alcohol industry
- 83% Reject companies that support the defense industry
- 81% Support companies that have a good environmental record
- 79% Support companies that demand human rights practices
- 43% Support companies that support labor issues
- 38% Support companies with a stance on abortion or birth control
- 23% Support companies with a stance on animal rights
Atlantis Financial asset managers can advise our clients on how to develop a “green” strategy that targets the industries in which they wish to invest and avoids those that a client feels are against their belief or moral code.
