If you’re concerned about social, ethical and environmental issues, find out how to make a positive and measurable impact. Easily and Effectively.
If you’re concerned about social, ethical and environmental issues
you can have a real, measurable impact on them with your investment
portfolio. Socially responsible
investing allows your investments not only to improve your own life, but also
your communities and the world. One of
the challenges of socially responsible investing is that it can be difficult to
identify the investments that will truly benefit you along with contributing
the issues you care about. To ensure
your investments are aligned with the social, environmental and community
issues that matter most to you, in-depth screenings of companies and their
impact must be conducted, monitored and reviewed. The corporate structure,
business practices, history, and of course, the return on your investment are
examined in detail, which also offers an extra layer of risk management.
Socially
responsible investing (SRI), or social investment, also known as sustainable,
socially conscious, "green" or ethical investing,
is any investment strategy
which seeks to consider both financial
return and social/environmental
good to bring about a positive
change.
No one should have to choose between building wealth and building
a better world. Companies with socially
responsible corporate behaviour offer the best prospects for creating and
preserving long-term value, and with less risk.
Socially responsible investing lets you align
your investment goals with your values, so that you can enjoy competitive
financial returns while making a positive social impact. By selecting companies
that improve our communities and our environment, and by excluding companies
that have a negative impact, you can invest in companies that contribute to a
better financial future for you and a better world for everyone.
In general, socially responsible investors encourage corporate practices that promote environmental stewardship, consumer protection, human rights, and diversity. The areas of concern recognized by the SRI
practitioners are sometimes summarized under the heading of ESG issues:
environment, social responsibility, and corporate governance. These 3 factors are summarized below:
·
Environmental Performance
How does a company act as a steward for the natural environment? For example, how does its operations impact the environment? Are they taking steps to reduce reliance on non-renewable energy sources?
How does a company act as a steward for the natural environment? For example, how does its operations impact the environment? Are they taking steps to reduce reliance on non-renewable energy sources?
·
Social Responsibility
How does a company treat people both inside and outside the company? For example, do they value diversity? Do they protect human and consumer rights?
How does a company treat people both inside and outside the company? For example, do they value diversity? Do they protect human and consumer rights?
·
Corporate Governance
How does a company govern itself? For example, how are executives compensated? Does the company operate transparently and accountably?
How does a company govern itself? For example, how are executives compensated? Does the company operate transparently and accountably?
Companies excluded from SRI are involved in
industries that are considered to be harmful to the community or the
environment:
·
Tobacco
·
Nuclear power
·
Military weapons
·
Pornography
·
Gaming
Sustainable
companies offer the best prospects for creating and preserving long-term
value. Investors monitor each company
and as stakeholders encourage them to address issues that could have a negative
effect on the community or the environment.
For example, SRI fund holders have worked to:
·
Improve conditions for factory
workers in developing countries
·
Prevent the manufacture of
products that contain toxins
·
Ensure company goods are not
produced by slave labour
·
Uncover instances of child labour
in mining operations
By actively educating businesses about the impact of their
operations, you can help them make sustainable choices that improve people’s
lives as well as your bottom line.
Getting Started:
To
learn more about socially responsible investing, set up an appointment today.
Steve
MacLellan, P.Eng
The
Financial Engineer
902-240-6508
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