{"id":46190,"date":"2016-11-22T10:06:20","date_gmt":"2016-11-22T15:06:20","guid":{"rendered":"http:\/\/planetsave.com\/?p=46190"},"modified":"2016-11-22T10:07:59","modified_gmt":"2016-11-22T15:07:59","slug":"better-socially-responsible-investing-sri-or-environmental-social-and-governance-esg","status":"publish","type":"post","link":"https:\/\/planetsave.com\/articles\/better-socially-responsible-investing-sri-or-environmental-social-and-governance-esg\/","title":{"rendered":"Socially Responsible versus Environmental, Social, and Governance Investment"},"content":{"rendered":"

As sustainable investors, we can make a difference in the future of the planet through the financial decisions we make. The Forum for Sustainable and Responsible Investment\u2019s <\/span>Report on Sustainable and Responsible Investing Trends in the United States<\/span><\/a> identified $8.72 trillion in total assets under management at the end of 2015 using one or more sustainable, responsible, and impact investment strategies.\u00a0<\/span>Yes, when we invest, we want a strong financial performance as well as to make contributions that advance environmental, social, and governance (ESG) practices. In fact, while ESG practices may seem identical to socially responsible investments (SRI), they\u2019re actually quite different. You may always have thought that SRIs were the way to go, but a little more scrutiny might point you to ESG investments as the ones which can use your dollar to make the most impact on our planet. You decide…<\/span><\/p>\n

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Socially responsible investments are exclusionary<\/strong><\/h3>\n

SRIs exclude certain companies or even entire industries because their products or services are not consistent with a green philosophy. These are markets that not only refuse to acknowledge that the environment is the most urgent political problem of our age; they contribute to international capitalism, consumerism, and the exploitation of natural resources. SRIs, instead, focus on investments that bring into balance the conservation and preservation of the Earth’s natural resources, habitats, and biodiversity with human culture and communities. SRIs may trace their origins to 1758, when the Quakers in the U.S. prohibited members from participating in the business of buying or selling humans.<\/span><\/p>\n

There is considerable recent interest and growth in the concept of impact investing, with focus on private market investments with a social return. Indeed, the emergence of impact investing has brought new interest and investors to the SRI field. The creation of SRI indices speaks to the growing relevance of SRI on the investment marketplace. Many publicly traded companies, in turn, aim to be selected for SRI funds and promote their inclusion in SRI indexes to their stakeholders.<\/span><\/p>\n

SRI is slowly becoming an investment option that is gaining momentum within the financial community. \u00a0SRI mutual funds continue to rise, with a four-fold increase in the last ten years with respect to the number of funds and the funds’ assets.\u00a0Socially responsible investing appears to be spreading throughout the world, with Canada, Europe, Australia, and Japan leading the way.<\/p>\n

For those individuals interested in mutual funds, here are the top 10 performing SRI mutual funds<\/a> as of September 2015, based on their three year average annual return.<\/p>\n