What is SRI?
Within our field, the dust hasn’t settled on nomenclature, so other terms have sprung up describing what we do, such as “sustainability investing, “ESG (environmental, social and governance) investing,” “impact investing,” “triple bottom line investing,” and others.
Whatever one’s preferred nomenclature, practitioners of our field share the recognition that every financial transaction has social implications as well as monetary ones.
While traditional investing is aimed exclusively at maximizing financial value, social investing takes account of both financial and social bottom lines. In its ideal, SRI is investing that does not exploit human, environmental, or natural capital resources, but rather directs financial resources toward investments that result in positive social benefit.
SRI can encompass any or all of the following activities:
- Screening out companies with negative social impacts
- Seeking investments in companies with positive social impact
- Voting corporate proxies
- Direct or indirect investments in high social impact vehicles (“impact investing”)
- Engaging with corporations to promote stronger ESG policies and practices
- Public policy advocacy
Clean Yield employs all of these SRI strategies. We are committed both to maximizing financial return and promoting a better society.
Learn more about Socially Responsible Investing.