Examines how the retail Sustainable, Responsible and ethical
Investment (SRI) market got to where it is today and why
accelerating the integration of ethical, social and environmental
factors into retail investment planning makes sense.
- Retail sustainable, responsible and ethical investment fund
options (SRI) emerged in the 1980s, and have expanded and
diversified significantly since 2000 as a result of diverse
investor aims, opinions and motivations. Strategies include
screened and themed funds options as well as the option to select
fund management companies based on corporate level SRI related
activities and strategies.
- The market can be simplified by breaking it down into the eight
'SRI Styles' segments: Ethically Balanced, Negative Ethical,
Sustainability Themed, Environmental Themed, Social Themed and
Faith Based fund options plus Responsible Ownership and ESG
Integration corporate level options.
- The clearest indication of the benefits of additional
Environmental, Social and Governance (ESG) research is the fact
that many of the world's largest investors now integrate ESG issues
into risk management and investment analysis across the board.
- SRI offers investors the option to align lifestyle choices,
interests, values and opinions into investment planning. Many may
also want to reflect their views on emerging mega trends and
changing business strategies.
- Shifting the 'conversation' away from purely financial matters
and towards opinions and the way in which returns are generated can
help to personalise the investment advice experience by adding
context and personal relevance.
- 'Conversations' of this kind are becoming increasingly
important as issues such as sustainability and climate change are
becoming ever more important to both business and investors.
By offering people the option to bring their values and
opinions into their investment strategy the financial services
industry can start to reconnect with investors who have been put
off by today's prevailing culture.
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