What is considered socially responsible investing? Socially Responsible Investing (SRI) involves investing in companies that promote ethical and socially conscious themes including environmental sustainability, social justice, and corporate ethics, in addition to fighting against gender and sexual discrimination.
Does SRI hurt investment returns? A 2019 study by a major Canadian financial institution* concluded that SRI does not result in lower returns. The study assessed the results of a comparison of SRI returns and the returns of four other groups: index comparison, mutual fund comparison, hypothetical portfolios, and company performance.
Do SRI funds outperform the market? The findings indicate that the majority of the current academic literature reports that the performance of SRI funds is on par with conventional investments. At the same time, many studies show that SRI investments outperform conventional instruments, while others have found that they underperform.
Is socially responsible investing effective? Benefits of socially responsible investing
“ESG investing is powerful because it encourages investors to start engaging with their wealth in a different way, becoming more aware of how they want to use their capital and resources to create a better world, and what they want their legacy to be for future generations.”