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Wikipedia

Socially responsible investing

"Social investment" redirects here. It is not to be confused with Social investment theory.

Socially responsible investing (SRI), social investment, 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 social change regarded as positive by proponents.: 4 Socially responsible investments often constitute a small percentage of total funds invested by corporations and are riddled with obstacles.: 4

Sustainable Energy: One of many forms of sustainable investing

Recently, it has also become known as "sustainable investing" or "responsible investing". There is also a subset of SRI known as "impact investing", devoted to the conscious creation of social impact through investment.

In general, socially responsible investors encourage corporate practices that they believe promote environmental stewardship, consumer protection, human rights, and racial or gender diversity. Some SRIs avoid investing in businesses perceived to have negative social effects such as alcohol, tobacco, fast food, gambling, pornography, weapons, fossil fuel production or the military. The areas of concern recognized by the SRI practitioners are sometimes summarized under the heading of ESG issues: environment, social justice, and corporate governance.

Socially responsible investing is one of several related concepts and approaches that influence and, in some cases, govern how asset managers invest portfolios. The term "socially responsible investing" sometimes narrowly refers to practices that seek to avoid harm by screening companies for ESG risks before deciding whether or not they should be included in an investment portfolio. However, the term is also used more broadly to include more proactive practices such as impact investing, shareholder advocacy and community investing. According to investor Amy Domini, shareholder advocacy and community investing are pillars of socially responsible investing, while doing only negative screening is inadequate.

Some rating companies focus specifically on ESG risk ratings as they can be a "valuable tool for asset managers". These ratings firms evaluate companies and projects on several risk factors and typically assign an aggregate score to each company or project being rated. The firms publish reports of their ESG risk findings.

Contents

The origins of socially responsible investing may date back to the Religious Society of Friends (Quakers). In 1758, the Quaker Philadelphia Yearly Meeting prohibited members from participating in the slave trade – buying or selling humans.

One of the most articulate early adopters of SRI was John Wesley (1703–1791), one of the founders of Methodism. Wesley's sermon "The Use of Money" outlined his basic tenets of social investing – i.e. not to harm your neighbor through your business practices and to avoid industries like tanning and chemical production, which can harm the health of workers. Some of the best-known applications of socially responsible investing were religiously motivated. Investors would avoid "sinful" companies, such as those associated with products such as guns, liquor, and tobacco.

The modern era of socially responsible investing evolved during the political climate of the 1960s. During this time, socially concerned investors increasingly sought to address equality for women, civil rights, and labor issues. Economic development projects started or managed by Dr. Martin Luther King, like the Montgomery bus boycott and the Operation Breadbasket Project in Chicago, established the beginning model for socially responsible investing efforts. King combined ongoing dialog with boycotts and direct action targeting specific corporations. Concerns about the Vietnam War were incorporated by some social investors. Many people living during the era remember a picture in June 1972 of a naked nine-year-old girl, Phan Thị Kim Phúc, running towards a photographer screaming, her back burning from the napalm dropped on her village. That photograph channeled outrage against Dow Chemical, the manufacturer of napalm, and prompted protests across the country against Dow Chemical and other companies profiting from the Vietnam War.

During the 1950s and 1960s, trade unions deployed multi-employer pension fund monies for targeted investments. For example, the United Mine Workers fund invested in medical facilities, and the International Ladies' Garment Workers' Union (ILGWU) and International Brotherhood of Electrical Workers (IBEW) financed union-built housing projects. Labor unions also sought to leverage pension stocks for shareholder activism on proxy fights and shareholder resolutions. In 1978, SRI efforts by pension funds was spurred by The North will Rise Again: Pensions, Politics, and Power in the 1980s and the subsequent organizing efforts of authors Jeremy Rifkin and Randy Barber. By 1980, presidential candidates Jimmy Carter, Ronald Reagan and Jerry Brown advocated some type of social orientation for pension investments.

SRI had an important role in ending the apartheid government in South Africa. International opposition to apartheid strengthened after the 1960 Sharpeville massacre. In 1971, Reverend Leon Sullivan (at the time a board member for General Motors) drafted a code of conduct for practicing business in South Africa which became known as the Sullivan Principles. However, reports documenting the application of the Sullivan Principles said that US companies were not trying to lessen discrimination in South Africa. Due to these reports and mounting political pressure, cities, states, colleges, faith-based groups and pension funds throughout the US began divesting from companies operating in South Africa. In 1976, the United Nations imposed a mandatory arms embargo against South Africa. From the 1970s to the early 1990s, large institutions avoided investment in South Africa under apartheid. The subsequent negative flow of investment eventually forced a group of businesses, representing 75% of South African employers, to draft a charter calling for an end to apartheid. While the SRI efforts alone did not bring an end to apartheid, it did focus persuasive international pressure on the South African business community.

The mid and late 1990s saw the rise of SRI's focus on a diverse range of other issues, including tobacco stocks, mutual fund proxy disclosure, and other diverse focuses.

Since the late 1990s, SRI has become increasingly defined as a means to promote environmentally sustainable development. Many investors consider effects of global climate change a significant business and investment risk. CERES was founded in 1989 by Joan Bavaria and Dennis Hayes, coordinator of the first Earth Day, as a network for investors, environmental organizations, and other public interest groups interested in working with companies to address environmental concerns.

In 1989, representatives from the SRI industry gathered at the first SRI in the Rockies Conference to exchange ideas and gain momentum for new initiatives. The name has since changed to The SRI Conference which meets annually at Green Building certified establishments and has attracted over 550 persons annually since 2006. This conference is produced by First Affirmative Financial Network, an investment advisory firm that works with advisors nationwide providing portfolios specialized in sustainable and responsible investing.

The first sell-side brokerage in the world to offer SRI research was the Brazilian bank Unibanco. The service was launched in January 2001 by Unibanco SRI analyst Christopher Wells from the São Paulo headquarters of the bank. It was targeted at SRI funds in Europe and the US, although it was sent to non-SRI funds both in and out of Brazil. The research was about environmental and social issues (but not governance issues) regarding companies listed in Brazil. It was sent for free to Unibanco's clients. The service lasted until mid-2002.

Drawing on the industry's experience using divestment as a tool against apartheid, the Sudan Divestment Task Force was established in 2006 in response to the genocide occurring in the Darfur region of the Sudan. Support from the US government followed with the Sudan Accountability and Divestment Act of 2007.

More recently, some social investors have sought to address the rights of indigenous peoples around the world who are affected by the business practices of various companies. The 2007, SRI in the Rockies Conference held a special pre-conference specifically to address the concerns of indigenous peoples. Healthy working conditions, fair wages, product safety, and equal opportunity employment also remain headline concerns for many social investors. In the mid-2010s, some funds developed gender lens investing strategies to promote workplace equity and general welfare of women and girls.

Socially responsible investing is a growing market in both the US and Europe. In particular, it has become an important principle guiding the investment strategies of various funds and accounts.

Government-controlled funds

Government-controlled funds such as pension funds are often very large players in the investment field, and are being pressured by the citizenry and by activist groups to adopt investment policies which encourage ethical corporate behavior, respect the rights of workers, consider environmental concerns, and avoid violations of human rights. One outstanding endorsement of such policies is The Government Pension Fund of Norway, which is mandated to avoid "investments which constitute an unacceptable risk that the Fund may contribute to unethical acts or omissions, such as violations of fundamental humanitarian principles, serious violations of human rights, gross corruption or severe environmental damages".

In the 2000s and 2010s, pension funds were[needs update] under pressure to disinvest from the arms company BAE Systems, partially due to a campaign run by the Campaign Against Arms Trade (CAAT). Liverpool City Council has passed a successful resolution to disinvest from the company, but a similar attempt by the Scottish Green Party in Edinburgh City Council was blocked by the Liberal Democrats.

Mutual funds and ETFs

Socially responsible mutual funds counted by the 2014 Trends Report increased in number to 415 in 2014, up from 333 in 2012, 250 in 2010, 173 in 2005 & 2007, 189 in 2003, and 167 in 2001. The overall number of mutual funds incorporating environmental, social and corporate governance (ESG) has increased four-fold since 2012. Additionally, 20 exchange-traded funds (ETFs) that incorporate ESG criteria were identified with $3.5 billion in assets at the end of 2011, an increase from the 8 ETFs with $2.25 billion in net assets identified in its 2007 report—the first Trends report to track ETFs [11]. Unlike the Employee Retirement Income Security Act of 1974 (ERISA), which severely limits the extent to which socially responsible goals can be considered in managing corporate and Taft-Hartley pension assets (due to ERISA's overriding goal of protecting employees' pensions), registered investment companies can take these factors into account so long as the disclosure and other requirements of the Investment Company Act of 1940 are met. US SIF maintains charts describing the socially responsible mutual funds offered by its member firms.

Key: X = No investment; P = Positive investment; R = Restricted investment; NS = No screens.
Fund Alcohol Tobacco Gambling Defense/ Weapons Animal Testing Products/ Services Environment Human Rights Labor Relations Employment/ Equality Community Investment Proxy Voting
Access Capital Strategies Community Investment Fund NS NS NS NS NS NS NS NS NS NS P X
AHA Balanced Fund – Institutional Class NS X NS NS NS NS NS NS NS NS NS V
AHA Diversified Equity Fund – Institutional Class NS X NS NS NS NS NS NS NS NS NS V
AHA Diversified Equity Fund – N Class NS X NS NS NS NS NS NS NS NS NS V
AHA Full Maturity Fixed Income Fund – Institutional Class NS X NS NS NS NS NS NS NS NS NS V
AHA Full Maturity Fixed Income Fund – N Class NS X NS NS NS NS NS NS NS NS NS V
AHA Limited Maturity Fixed Income Fund – Institutional Class NS X NS NS NS NS NS NS NS NS NS V
AHA Limited Maturity Fixed Income Fund – N Class NS X NS NS NS NS NS NS NS NS NS V
AHA Socially Responsible Equity I X X X X NS P P P P P NS V
AHA Socially Responsible Equity N X X X X NS P P P P P NS V
Appleseed Fund[1] R R R R NS NS P P P NS P V
Ariel Appreciation Fund [2] NS X NS X NS NS NS NS NS NS NS V
Ariel Focus Fund NS X NS X NS NS NS NS NS NS NS V
Ariel Fund NS X NS X NS NS NS NS NS NS NS V
Azzad Ethical Income Fund [3] X X X X NS NS NS NS NS NS NS V
Azzad Ethical Mid Cap Fund X X X X NS NS NS NS NS NS NS V
Brighter Student Fund [4] X X X X X X X X X P X X
'Fund' Alcohol Tobacco Gambling Defense/ Weapons Animal Testing Products/ Services Environment Human Rights Labor Relations Employment/ Equality Community Investment Proxy Voting
Calvert Aggressive Allocation Fund [5] X X X R R P P P P P P V
Calvert Capital Accumulation A [6] X X X R R P P P P P P V
Calvert Capital Accumulation B [7] X X X R R P P P P P P V
Calvert Capital Accumulation C [8] X X X R R P P P P P P V
Calvert Conservative Allocation Fund [9] X X X R R P P P P P P V
Calvert Global Alternative Energy Fund A [10] NS NS NS NS NS P P P P P NS V
Calvert Global Water Fund [11] X NS NS X NS X NS P NS NS NS V
Calvert International Opportunities Fund [12] R R NS NS NS P P P P P NS V
Calvert Large Cap Growth A X X X R R P P P P P P V
Calvert Large Cap Growth B X X X R R P P P P P P V
Calvert Large Cap Growth C X X X R R P P P P P P V
Calvert Large Cap Growth I X X X R R P P P P P P V
Calvert Mid Cap Value Fund X X X R R P P P P P P V
Calvert Moderate Allocation Fund X X X R R P P P P P P V
Calvert New Vision Small Cap A X X X R R P P P P P P V
Calvert New Vision Small Cap B X X X R R P P P P P P V
Calvert New Vision Small Cap C X X X R R P P P P P P V
'Fund' Alcohol Tobacco Gambling Defense/ Weapons Animal Testing Products/ Services Environment Human Rights Labor Relations Employment/ Equality Community Investment Proxy Voting
Calvert Small Cap Value Fund X X X R R P P P P P P V
Calvert Social Index A X X X R R P P P P P P V
Calvert Social Index B X X X R R P P P P P P V
Calvert Social Index C X X X R R P P P P P P V
Calvert Social Index I X X X R R P P P P P P V
Calvert Social Investment Balanced A X X X R R P P P P P P V
Calvert Social Investment Balanced C X X X R R P P P P P P V
Calvert Social Investment Bond A X X X R R P P P P P P V
Calvert Social Investment Enhanced Equity A X X X R R P P P P P P V
Calvert Social Investment Enhanced Equity B X X X R R P P P P P P V
Calvert Social Investment Enhanced Equity C X X X R R P P P P P P V
Calvert Social Investment Equity A X X X R R P P P P P P V
Calvert Social Investment Equity C X X X R R P P P P P P V
Calvert Social Investment Equity I X X X R R P P P P P P V
Calvert World Values International A X X NS R NS P P P P P P V
Calvert World Values International C X X NS R NS P P P P P P V
CRA Qualified Investment [13] NS NS NS NS NS NS NS NS NS NS P X
'Fund' Alcohol Tobacco Gambling Defense/ Weapons Animal Testing Products/ Services Environment Human Rights Labor Relations Employment/ Equality Community Investment Proxy Voting
Domini European PacAsia Social Equity A [14] X X X X NS P P P P P NS V
Domini European PacAsia Social Equity I [15] X X X X P P P P P P NS V
Domini European Social Equity A X X X X NS P P P P P NS V
Domini European Social Equity I X X X X NS P P P P P NS V
Domini Institutional Social Equity X X X X NS P P P P P NS V
Domini PacAsia Social Equity A X X X X NS P P P P P NS V
Domini PacAsia Social Equity I X X X X NS P P P P P NS V
Domini Social Bond [16] X X X X NS P P P P P P V
Domini Social Equity A X X X X NS P P P P P NS V
Domini Social Equity I X X X X NS P P P P P NS V
Epiphany Faith and Family Values 100 Fund – A Class [17][18] R R R R NS NS P P P P NS V
Epiphany Faith and Family Values 100 Fund – C Class R R R R NS NS P P P P NS V
Epiphany Faith and Family Values 100 Fund – N Class R R R R NS NS P P P P NS V
Gabelli SRI Green Fund Inc A R R R X NS P P NS NS NS NS V
Gabelli SRI Green Fund Inc AAA R R R X NS P P NS NS NS NS V
Gabelli SRI Green Fund Inc C R R R X NS P P NS NS NS NS V
Gabelli SRI Green Fund Inc I R R R X NS P P NS NS NS NS V
Green Century Balanced [19] NS X NS R R P P NS NS NS NS V
Green Century Equity X X X R NS P P P P P NS V
Integrity Growth and Income Fund [20] X X X NS R NS P R R R NS V
'Fund' Alcohol Tobacco Gambling Defense/ Weapons Animal Testing Products/ Services Environment Human Rights Labor Relations Employment/ Equality Community Investment Proxy Voting
Legg Mason Prt Social Awareness Fund A NS R NS R NS NS P P P P NS V
Legg Mason Prt Social Awareness Fund B NS R NS R NS NS P P P P NS V
Merrion Stockbrokers Social Awareness Fund C NS R NS R NS NS P P P P NS V
Praxis Growth Index Fund A [21] X X X X NS P P P P P P V
Praxis Growth Index Fund I X X X X NS P P P P P P V
Praxis Impact Bond Fund A X X X X NS P P P P P P V
Praxis Impact Bond Fund I X X X X NS P P P P P P V
Praxis International Index Fund A X X X X NS P P P P P P V
Praxis International Index Fund I X X X X NS P P P P P P V
Praxis Small Cap Index Fund A X X X X NS P P P P P P V
Praxis Small Cap Index Fund I X X X X NS P P P P P P V
Praxis Value Index Fund A X X X X NS P P P P P P V
Praxis Value Index Fund I X X X X NS P P P P P P V
Neuberger Berman Socially Resp Inv [22] X X X X R P P P P P NS V
New Alternatives Fund [23] X X X X X P P P P P P X
'Fund' Alcohol Tobacco Gambling Defense/ Weapons Animal Testing Products/ Services Environment Human Rights Labor Relations Employment/ Equality Community Investment Proxy Voting
Parnassus Core Equity Fund [24] X X X X R P P P P P NS V
Parnassus Fund [25] X X X X R P X P P P P V
Parnassus Income Fixed Income [26] X X X X R P X P P P NS V
Parnassus Mid Cap Fund [27] X X X X R P P P P P P V
Parnassus Small Cap Fund X X X X R P X P P P P V
Parnassus Endeavor Fund X X X X R P X P P P P V
Pax World Balanced R X R R R P P P P P P V
Pax World Growth R X R R R P P P P P NS V
Pax World High Yield R X R R R P P P P P P V
Pax World Value Fund – Individual Investor NS X R X R P P P P P NS V
Pax World Value Fund – Institutional Class NS X R X R P P P P P NS V
Pax World Women's Equity Fund – Individual Investor NS X R X R R R NS R R NS V
Pax World Women's Equity Fund – Institutional Class NS X R X R R R R R R NS V
Portfolio 21 [28] NS X R R R P P R R R P V
Portfolio 21 Institutional [29] NS X R R R P P R R R NS V
Sentinel Sustainable Core Opportunities Fund [30] X X X R R P P P P P NS V
Sentinel Sustainable Emerging Companies Fund X X X R R P P P P P NS V
SPDR Gender Diversity Index ETF (SHE) X X X X X X X P P P NS V
TIAA-CREF R R R R NS P P P P P NS V
Flex Total Return Utilities Fund [31] X X X X X P P NS P P NS V
Vanguard FTSE Social Index Fund [32] X X X X X NS X X NS NS NS NS
WVH Ethical Inc. Social Balanced Fund X X R X R P P P P P P V
WVH Ethical Inc. Social Equity Fund X X R X R P P P R P X V
WVH Ethical Inc. Green Growth Fund [33] R R R R R P P NS NS NS NS V
xRussell 3000 NS NS NS NS NS NS NS NS NS NS NS X

Separately managed accounts

According to the 2014 Report on US Sustainable, Responsible and Impact Investing Trends, among separate account managers, 214 distinctive separate account vehicles or strategies, with $433 billion in assets, incorporated ESG factors into investment analysis. Where a separate account is subject to ERISA, there are legal limitations on the extent to which investment decisions can be based on factors other than maximizing plan participants' economic returns.

Shareholder advocacy

Shareholder resolutions are filed by a wide variety of institutional investors, including public pension funds, faith-based investors, socially responsible mutual funds, and labor unions. In 2004, faith-based organizations filed 129 resolutions, while socially responsible funds filed 56 resolutions.

Regulations governing shareholder resolutions vary from country to country. In the United States, they are determined primarily by the Securities and Exchange Commission, which regulates mutual funds and applies the 1940 Act and by the Department of Labor, which regulates certain plans and applies ERISA.

These regulatory regimes require pension plans and mutual funds to disclose how they voted on behalf of their investors. U.S. shareholders have organized various groups to facilitate jointly filing resolutions. These include the Council of Institutional Investors, the Interfaith Center on Corporate Responsibility, and the US SIF.

From 2012 to 2014, more than 200 US institutions and investment management firms filed or co-filed proposals. These institutions and money managers collectively controlled $1.72 trillion in assets at the end of 2013. The top categories of environmental and social issues from 2012 to 2014 were political contributions and climate change and environmental issues.

Community investing

Community investing, a subset of socially responsible investing, allows for investment directly into community-based organizations. Community investing institutions use investor capital to finance or guarantee loans to individuals and organizations that have historically been denied access to capital by traditional financial institutions. These loans are used for housing, small business creation, and education or personal development in the US and UK, or are made available to local financial institutions abroad to finance international community development. The community investing institution typically provides training and other types of support and expertise to ensure the success of the loan and its returns for investors.

Community investing grew almost 5% from 2012 to 2014. Assets held and invested locally by community development financial institutions (CDFIs) based in the US totaled $64.3 billion at the start of 2014, up from $61.4 billion in 2012.

Investing in capital markets

Social investors use several strategies to maximize financial return and attempt to maximize social good. These strategies seek to create change by shifting the cost of capital down for sustainable firms and up for the non-sustainable ones. The proponents argue that access to capital is what drives the future direction of development. A growing number of rating agencies collects both raw data the ESG behaviour of firms as well as aggregates this data in indices. After several years of growth the rating agency industry has recently been subject to a consolidation phase that has reduced the number of genesis through mergers and acquisitions.

ESG integration

ESG integration is one of the most common responsible investment strategies and entails the incorporation of environmental, social and governance ("ESG") criteria into the fundamental analysis of equity investments. According to the non-profit Investor Responsibility Research Center institute (IRRCi), approaches to ESG integration vary greatly among asset managers depending on:

  • Management: Who is responsible for ESG integration within the organization?
  • Research: What ESG criteria and factors are being considered in the analysis?
  • Application: How are the ESG criteria being applied in practice?

Negative screening

Negative screening excludes certain securities from investment consideration based on social or environmental criteria. For example, many socially responsible investors screen out tobacco company investments.

The longest-running SRI index, the Domini 400—now the MSCI KLD 400—was started in May 1990. It has continued to perform competitively —with average annualized total returns of 9.51% through December 2009 compared with 8.66% for the S&P 500.

Despite this impressive growth, it has long been commonly perceived that SRI brings smaller returns than unrestricted investing. So-called "sin stocks", including purveyors of tobacco, alcohol, gambling and defense contractors, were banned from portfolios on moral or ethical grounds. And shutting out entire industries hurts performance, the critics said. However, in a comprehensive study, financial economists Lobe, Roithmeier, and Walkshäusl taking the position of the advocatus diaboli, answer the question whether to invest in a socially responsible way – or not? They create a set of global and domestic sin indexes consisting of 755 publicly traded socially irresponsible stocks around the world belonging to the Sextet of Sin: adult entertainment, alcohol, gambling, nuclear power, tobacco, and weapons. They compare their stock market performance directly with a set of virtue comparables consisting of the most important international socially responsible investment indexes. They find no compelling evidence that ethical and unethical screens lead to a significant difference in their financial performance, which is in contrast with the results of prior studies on sinful investing.

Divestment

Divesting is the act of removing stocks from a portfolio based on mainly ethical, non-financial objections to certain business activities of a corporation. Recently, CalSTRS (California State Teachers' Retirement System) announced the removal of more than $237 million in tobacco holdings from its investment portfolio after six months of financial analysis and deliberations.

Shareholder activism

Shareholder activism efforts attempt to positively influence corporate behavior. These efforts include initiating conversations with corporate management on issues of concern, and submitting and voting proxy resolutions. These activities are undertaken with the belief that social investors, working cooperatively, can steer management on a course that will improve financial performance over time and enhance the well being of the stockholders, customers, employees, vendors, and communities. Recent movements have also been reported of "investor relations activism", in which investor relations firms assist groups of shareholder activists in an organized push for change within a corporation. This is done typically by leveraging their enhanced knowledge of the corporation, its management (often via direct relationships), and the securities laws as a whole. Hedge funds are also major activist investors; while some pursue socially responsible investing goals, many simply are seeking to maximize fund returns. Pension plans subject to ERISA are somewhat more constrained in their ability to engage in shareholder activism or the use of plan assets to promote public policy positions; any expenditure of plan assets must be aimed at enhancing participants' retirement income.

Shareholder engagement

A less vocal subtype of shareholder activism, shareholder engagement requires extensive monitoring of the non-financial performance of all portfolio companies. In shareholder engagement dialogues, investees receive constructive feedback on how to improve ESG issues within their sphere of influence.

Positive investing

Positive investing is the new generation of socially responsible investing. It involves making investments in activities and companies believed to have a positive social impact. Positive investing suggested a broad revamping of the industry's methodology for driving change through investments. This investment approach allows investors to positively express their values on corporate behavior issues such as social justice and the environment through stock selection – without sacrificing portfolio diversification or long-term performance. Positive screening pushes the idea of sustainability, not just in the narrow environmental or humanitarian sense, but also in the sense of a company's long-term potential to compete and succeed. In 2015, Morgan Stanley conducted a review of 10,000 funds and concluded "strong sustainability" investments outperformed weak sustainability investments, tackling the idea of a trade-off between positive impact and financial return. while the Global Impact Investing Network's 2015 report on benchmarks and returns in impact investing in private equity and venture capital found market-rate or market-beating returns were common in impact investments.

Impact investing

Impact investing is the alternative investment (i.e. private equity) approach to Positive investing. In 2014, the UK's presidency of the G8 created a Social Impact Investment Task Force which produced a series of reports that defined impact investing as "those that intentionally target specific social objectives along with a financial return and measure the achievement of both". Impact investing, capitalizes businesses that potentially provide social or environmental impact at a scale that purely philanthropic interventions usually cannot reach. This capital may be in a range of forms including private equity, debt, working capital lines of credit, and loan guarantees. Examples in recent decades include many investments in microfinance, community development finance, and clean technology. Impacting investing has its roots in the venture capital community, and an investor will often take active role mentoring or leading the growth of the company or start-up.

Community investment

By investing directly in an institution, rather than purchasing stock, an investor is able to create a greater social impact: money spent purchasing stock in the secondary market accrues to the stock's previous owner and may not generate social good, while money invested in a community institution is put to work. For example, money invested in a Community Development Financial Institution may be used by that institution to alleviate poverty or inequality, spread access to capital to under-served communities, support economic development or green business, or create other social good. In 1984, Trillium Asset Management's founder, Joan Bavaria, invited Chuck Matthei of the Institute for Community Economics (ICE), an organization that helps communities create and sustain land trusts, to a meeting of US SIF. It is likely that this was the first time a nonprofit organization with a loan fund would meet directly with SRI managers. Trillium clients began investing in ICE later that year.

Socially responsible investing is a global phenomenon. With the international scope of business itself, social investors frequently invest in companies with international operations. As international investment products and opportunities have expanded, so have international SRI products. The ranks of social investors are growing throughout developed and developing countries. In 2006, the United Nations Environment Programme launched its Principles for Responsible Investment which provide a framework for investors to incorporate environmental, social, and governance (ESG) factors into the investment process. PRI has more than 1,500 signatories managing more than US$60 trillion of assets.

The Global Sustainable Investment Alliance (GSIA) is a collaboration of membership-based sustainable investment organisations around the world including the European Sustainable Investment Forum (Eurosif), UK Sustainable Investment and Finance Association (UKSIF), the Responsible Investment Association Australasia (RIAA), Responsible Investment Association (RIA Canada), the Forum for Sustainable and Responsible Investment (US SIF), Dutch Association of Investors for Sustainable Development (VBDO) and Japan Sustainable Investment Forum. The GSIA’s mission is to deepen the impact and visibility of sustainable investment organizations at the global level.

The Global Sustainable Investment Review 2018, the fourth edition of this biennial report, continues to be the only report collating results from the market studies of regional sustainable investment forums from Europe, the United States, Japan, Canada, and Australia and New Zealand. It provides a snapshot of sustainable investing in these markets at the start of 2018 by drawing on the in-depth regional and national reports from GSIA members: Eurosif, Japan Sustainable Investment Forum (JSIF), Responsible Investment Association Australasia, RIA Canada and US SIF. This report also includes data on the African sustainable investing market, from the African Investing for Impact Barometer, and on Latin America from the Principles for Responsible Investment.

The 2018 report shows that globally, sustainable investing assets in the five major markets stood at US$30.7 trillion at the start of 2018, a 34% increase in two years. From 2016 to 2018, the fastest growing region has been Japan, followed by Australia/New Zealand and Canada. These were also the three fastest growing regions in the previous two-year period. The largest three regions— based on the value of their sustainable investing assets—were Europe, the United States and Japan.

An 2020 global analysis from Morningstar indicates that assets in sustainable funds reached nearly, $1.7 trillion. Net flows into U.S. sustainable funds surpassed $51 billion.

Asset managers and other financial institutions increasingly rely on ESG ratings agencies to assess, measure and compare companies' ESG performance. Sustainsalytics, RepRisk are two examples of dedicated ESG ratings agencies, while global credit agencies like S&P Global are also seeing the value to adding ESG ratings to their data offerings.

According to the Responsible Investment Association Australasia's annual Responsible Investment Benchmark Report Australia 2020, in 2019 and for a 19th consecutive year, funds managed under responsible investment approaches grew as a proportion of total professionally managed investments in Australia to AU$1,149 billion in assets under management, a rise of 17% from 2018. Ever more investment managers are applying a range of responsible investing approaches – from ESG integration and negative screening to sustainability-themed and impact investing.

The report shows that in Australian and multi-sector responsible investment funds outperformed mainstream funds over 1, 3, 5 and 10 year time horizons.

Australian responsible investment managers still favour ESG integration and corporate engagement and voting above negative and norms-based screening as their primary responsible investment approaches for constructing portfolios, but managers are increasingly driving capital towards sustainability-themed and impact investing allocations with allocations to Green, Social and Sustainability Bonds more than doubling since last year.

Negative screening of fossil fuels by the responsible investment industry is beginning to catch up to consumer interest. In 2018, only 5% of responsible investment AUM for survey respondents who conduct negative screening was screened for fossil fuels. In 2019, 19% of responsible investment AUM has been screened for fossil fuels, growing 14 percentage points from the year before. For consumers using RIAA's Responsible Returns search and compare tool for ethical investments, the most important exclusionary screens are fossil fuels, human rights abuses and armaments.

The Responsible Investment Association Australasia's annual Responsible Investment Benchmark Report New Zealand 2020 details the size, growth, depth and performance of the New Zealand responsible investment market over 12 months to 31 December 2019 and compares these results with the broader New Zealand financial market. In 2019, funds managed under responsible investment approaches grew as a proportion of total professionally managed investments in New Zealand to NZ$153.5 billion in 2019. This represents 52% of the estimated NZ$296 billion of total professionally managed assets under management in New Zealand.

Increasingly, responsible investors in New Zealand have shifted their focus from screening out harmful industries such as tobacco and armaments, to considering broader environmental, social and corporate governance (ESG) factors when investing. Impact investing has grown over 13 times from NZ$358 million in 2018 to NZ$4.74 billion in 2019. Green, Social and Sustainability (GSS) Bonds account for 88% of products using this approach.

In 1985, Friends Provident launched the first ethically screened investment fund with criteria which excluded tobacco, arms, alcohol and oppressive regimes. Since 1985, over 90 investment funds have launched offering a wide range of investment criteria; both negatively screened and with positive investment criteria i.e. investing into companies involved in promoting sustainability.

Since 1985, most of the major investment organizations have launched ethical and socially responsible funds, although this has led to a great deal of discussion and debate over the use of the term "ethical" investment. This is because each of the fund management organizations tend to apply a slightly different approach to running their funds.

In recent years there has been growth in the market for high social impact investments; this is a style of investing where the businesses receiving investment have social or environmental goals as a primary purpose.[citation needed]

UK institutions are also getting more involved in social investing through impact investing funds, with those such as Deutsche Bank and NESTA, alongside other institutions such as Big Issue Invest, which is part of The Big Issue group.

As of June 2014, EIRIS estimated that there was over £13.5 billion invested in Britain's green and ethical retail funds. This estimate is based on around 85 UK domiciled green or ethical retail funds and it seeks to not include UK money invested in ethical funds domiciled outside of the UK.

In 2007, the Dwight Hall organization at Yale University launched the first undergraduate-run socially responsible investment fund in the United States, known as the Dwight Hall Socially Responsible Investment Fund.

While conventional investing only focuses on the traditional risk and returns considerations in making investment decisions, socially responsible investing considers other ethical factors as discussed above. Hence, the question often arise as to whether it pays financially to be ethical or not in making investment decisions. The debate as to whether there is anything to gain or lose by deciding to be ethical and socially responsible in making investment decisions is still ongoing. Several studies have found that there is no conclusive evidence as to whether the performances of socially responsible investments outperform those of conventional and vice versa.

Comparing portfolio and fund performance

Several studies in various places have analysed the performance of socially responsible investing (SRI) and conventional investing (CI) using different models and methodologies for measuring performance. Using the Carhart four-factor model, found that an approach where stocks with high SRI scores are bought while those with low SRI scores are sold off produced a positive abnormal performance of up to 8.7% per annum, suggesting that investors can achieve their ethical goals without hurting their financial performance. also using the Carhart four-factor model, noted an excess return of 7% for environmentally-friendly firms. However, using a similar approach found the performance of SRI stocks to be not statistically different from those of conventional stocks. In contrast, also using the Carhart four-factor model found a portfolio which included "sin stocks" (alcohol, tobacco, gaming) to be significantly outperforming similar comparable stocks, which indicates that investors in SRI stocks might be losing. However, after controlling for managerial skills, transaction costs and fees, found no outperformance between portfolios which include "sin" stocks and comparable SR portfolios. Some other studies have compared the performance of SRI funds with conventional funds. While some studies used only the capital asset pricing model to compare performance), others used multifactor models such as the Fama–French three-factor model and Carhart four-factor model. These studies found no statistically significant difference in performance between the SRI and conventional funds.

Comparing stock market index performance

Considering that difference in performance of funds may be due to portfolio selection/construction process and/or the ability of fund managers and not necessarily on the nature of investments themselves, some studies have compared the performance of stock market indices instead. Two of the pioneer studies compared the performance of the Domini 400 Social Index with the S&P 500. The Sharpe ratio and the capital asset pricing model were used to estimate Jensen's alpha for the comparison and no significant difference was found in the performance of the two indices. A follow-up study compared the performance of four SRI indices (Domini 400 Social Index, Calvert Social Index, Citizen's Index and Dow Jones Sustainability Indices US Index) with the S&P 500 index between 1990 and 2004 and found that returns on the SRI indices exceeded returns on S&P 500 even though they were not statistically significant. Others focused only on the US and on outside the US by studying the performance of 29 SRI indices globally. Using the capital asset pricing model to estimate Jensen's alpha as the performance indicator, no significant evidence of under/over performance was found. A comparison of the performance of SR indices with conventional indices on a global scale using marginal conditional stochastic dominance found there is "strong evidence that there is a financial price to be paid for socially responsible investing."

A more recent study showed that "improvements in CSR reputation enhance profits".

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Socially responsible investing
Socially responsible investing Article Talk Language Watch Edit Social investment redirects here It is not to be confused with Social investment theory Socially responsible investing SRI social investment 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 social change regarded as positive by proponents 1 4 Socially responsible investments often constitute a small percentage of total funds invested by corporations and are riddled with obstacles 1 4 Sustainable Energy One of many forms of sustainable investing Recently it has also become known as sustainable investing or responsible investing There is also a subset of SRI known as impact investing devoted to the conscious creation of social impact through investment In general socially responsible investors encourage corporate practices that they believe promote environmental stewardship consumer protection human rights and racial or gender diversity Some SRIs avoid investing in businesses perceived to have negative social effects such as alcohol tobacco fast food gambling pornography weapons fossil fuel production or the military 2 The areas of concern recognized by the SRI practitioners are sometimes summarized under the heading of ESG issues environment social justice and corporate governance Socially responsible investing is one of several related concepts and approaches that influence and in some cases govern how asset managers invest portfolios 3 The term socially responsible investing sometimes narrowly refers to practices that seek to avoid harm by screening companies for ESG risks before deciding whether or not they should be included in an investment portfolio 4 However the term is also used more broadly to include more proactive practices such as impact investing shareholder advocacy and community investing 5 According to investor Amy Domini shareholder advocacy and community investing are pillars of socially responsible investing while doing only negative screening is inadequate 6 Some rating companies focus specifically on ESG risk ratings as they can be a valuable tool for asset managers 7 These ratings firms evaluate companies and projects on several risk factors and typically assign an aggregate score to each company or project being rated The firms publish reports of their ESG risk findings Contents 1 History 2 Current strategies 2 1 Government controlled funds 2 2 Mutual funds and ETFs 2 3 Separately managed accounts 2 4 Shareholder advocacy 2 5 Community investing 3 Investing strategies 3 1 Investing in capital markets 3 1 1 ESG integration 3 1 2 Negative screening 3 1 3 Divestment 3 1 4 Shareholder activism 3 1 5 Shareholder engagement 3 1 6 Positive investing 3 1 7 Impact investing 3 2 Community investment 4 Global context 5 ESG ratings agencies 6 Responsible ethical and impact investing in Australia 7 Responsible ethical and impact investing in New Zealand 8 Ethical investment in the UK 9 In higher education 10 Comparison with conventional investing 10 1 Comparing portfolio and fund performance 10 2 Comparing stock market index performance 11 See also 12 References 13 External linksHistory EditThe origins of socially responsible investing may date back to the Religious Society of Friends Quakers In 1758 the Quaker Philadelphia Yearly Meeting prohibited members from participating in the slave trade buying or selling humans One of the most articulate early adopters of SRI was John Wesley 1703 1791 one of the founders of Methodism Wesley s sermon The Use of Money outlined his basic tenets of social investing i e not to harm your neighbor through your business practices and to avoid industries like tanning and chemical production which can harm the health of workers Some of the best known applications of socially responsible investing were religiously motivated Investors would avoid sinful companies such as those associated with products such as guns liquor and tobacco The modern era of socially responsible investing evolved during the political climate of the 1960s During this time socially concerned investors increasingly sought to address equality for women civil rights and labor issues Economic development projects started or managed by Dr Martin Luther King like the Montgomery bus boycott and the Operation Breadbasket Project in Chicago established the beginning model for socially responsible investing efforts King combined ongoing dialog with boycotts and direct action targeting specific corporations Concerns about the Vietnam War were incorporated by some social investors 8 9 Many people living during the era remember a picture in June 1972 of a naked nine year old girl Phan Thị Kim Phuc running towards a photographer screaming her back burning from the napalm dropped on her village That photograph channeled outrage against Dow Chemical 10 the manufacturer of napalm and prompted protests across the country against Dow Chemical and other companies profiting from the Vietnam War During the 1950s and 1960s trade unions deployed multi employer pension fund monies for targeted investments For example the United Mine Workers fund invested in medical facilities and the International Ladies Garment Workers Union ILGWU and International Brotherhood of Electrical Workers IBEW financed union built housing projects 11 Labor unions also sought to leverage pension stocks for shareholder activism on proxy fights and shareholder resolutions In 1978 SRI efforts by pension funds was spurred by The North will Rise Again Pensions Politics and Power in the 1980s and the subsequent organizing efforts of authors Jeremy Rifkin and Randy Barber By 1980 presidential candidates Jimmy Carter Ronald Reagan and Jerry Brown advocated some type of social orientation for pension investments 12 SRI had an important role in ending the apartheid government in South Africa International opposition to apartheid strengthened after the 1960 Sharpeville massacre In 1971 Reverend Leon Sullivan at the time a board member for General Motors drafted a code of conduct for practicing business in South Africa which became known as the Sullivan Principles However reports documenting the application of the Sullivan Principles said that US companies were not trying to lessen discrimination in South Africa Due to these reports and mounting political pressure cities states colleges faith based groups and pension funds throughout the US began divesting from companies operating in South Africa In 1976 the United Nations imposed a mandatory arms embargo against South Africa From the 1970s to the early 1990s large institutions avoided investment in South Africa under apartheid The subsequent negative flow of investment eventually forced a group of businesses representing 75 of South African employers to draft a charter calling for an end to apartheid While the SRI efforts alone did not bring an end to apartheid it did focus persuasive international pressure on the South African business community The mid and late 1990s saw the rise of SRI s focus on a diverse range of other issues including tobacco stocks mutual fund proxy disclosure and other diverse focuses Since the late 1990s SRI has become increasingly defined as a means to promote environmentally sustainable development 13 Many investors consider effects of global climate change a significant business and investment risk CERES was founded in 1989 by Joan Bavaria and Dennis Hayes coordinator of the first Earth Day as a network for investors environmental organizations and other public interest groups interested in working with companies to address environmental concerns 14 In 1989 representatives from the SRI industry gathered at the first SRI in the Rockies Conference to exchange ideas and gain momentum for new initiatives The name has since changed to The SRI Conference which meets annually at Green Building certified establishments and has attracted over 550 persons annually since 2006 15 This conference is produced by First Affirmative Financial Network an investment advisory firm that works with advisors nationwide providing portfolios specialized in sustainable and responsible investing The first sell side brokerage in the world to offer SRI research was the Brazilian bank Unibanco The service was launched in January 2001 by Unibanco SRI analyst Christopher Wells from the Sao Paulo headquarters of the bank It was targeted at SRI funds in Europe and the US although it was sent to non SRI funds both in and out of Brazil The research was about environmental and social issues but not governance issues regarding companies listed in Brazil It was sent for free to Unibanco s clients The service lasted until mid 2002 Drawing on the industry s experience using divestment as a tool against apartheid the Sudan Divestment Task Force was established in 2006 in response to the genocide occurring in the Darfur region of the Sudan 16 Support from the US government followed with the Sudan Accountability and Divestment Act of 2007 More recently some social investors have sought to address the rights of indigenous peoples around the world who are affected by the business practices of various companies The 2007 SRI in the Rockies Conference held a special pre conference specifically to address the concerns of indigenous peoples Healthy working conditions fair wages product safety and equal opportunity employment also remain headline concerns for many social investors 17 In the mid 2010s some funds developed gender lens investing strategies to promote workplace equity and general welfare of women and girls 18 Current strategies EditSocially responsible investing is a growing market in both the US and Europe In particular it has become an important principle guiding the investment strategies of various funds and accounts 19 Government controlled funds Edit Government controlled funds such as pension funds are often very large players in the investment field and are being pressured by the citizenry and by activist groups to adopt investment policies which encourage ethical corporate behavior respect the rights of workers consider environmental concerns and avoid violations of human rights One outstanding endorsement of such policies is The Government Pension Fund of Norway which is mandated to avoid investments which constitute an unacceptable risk that the Fund may contribute to unethical acts or omissions such as violations of fundamental humanitarian principles serious violations of human rights gross corruption or severe environmental damages 20 In the 2000s and 2010s pension funds were needs update under pressure to disinvest from the arms company BAE Systems partially due to a campaign run by the Campaign Against Arms Trade CAAT 21 Liverpool City Council has passed a successful resolution to disinvest from the company 22 but a similar attempt by the Scottish Green Party in Edinburgh City Council was blocked by the Liberal Democrats 23 Mutual funds and ETFs Edit Socially responsible mutual funds counted by the 2014 Trends Report increased in number to 415 in 2014 up from 333 in 2012 250 in 2010 173 in 2005 amp 2007 189 in 2003 and 167 in 2001 The overall number of mutual funds incorporating environmental social and corporate governance ESG has increased four fold since 2012 Additionally 20 exchange traded funds ETFs that incorporate ESG criteria were identified with 3 5 billion in assets at the end of 2011 an increase from the 8 ETFs with 2 25 billion in net assets identified in its 2007 report the first Trends report to track ETFs 11 Unlike the Employee Retirement Income Security Act of 1974 ERISA which severely limits the extent to which socially responsible goals can be considered in managing corporate and Taft Hartley pension assets due to ERISA s overriding goal of protecting employees pensions 24 registered investment companies can take these factors into account so long as the disclosure and other requirements of the Investment Company Act of 1940 are met 25 US SIF maintains charts describing the socially responsible mutual funds offered by its member firms Key X No investment P Positive investment R Restricted investment NS No screens Fund Alcohol Tobacco Gambling Defense Weapons Animal Testing Products Services Environment Human Rights Labor Relations Employment Equality Community Investment Proxy VotingAccess Capital Strategies Community Investment Fund 26 NS NS NS NS NS NS NS NS NS NS P XAHA Balanced Fund Institutional Class NS X NS NS NS NS NS NS NS NS NS VAHA Diversified Equity Fund Institutional Class NS X NS NS NS NS NS NS NS NS NS VAHA Diversified Equity Fund N Class NS X NS NS NS NS NS NS NS NS NS VAHA Full Maturity Fixed Income Fund Institutional Class NS X NS NS NS NS NS NS NS NS NS VAHA Full Maturity Fixed Income Fund N Class NS X NS NS NS NS NS NS NS NS NS VAHA Limited Maturity Fixed Income Fund Institutional Class NS X NS NS NS NS NS NS NS NS NS VAHA Limited Maturity Fixed Income Fund N Class NS X NS NS NS NS NS NS NS NS NS VAHA Socially Responsible Equity I X X X X NS P P P P P NS VAHA Socially Responsible Equity N X X X X NS P P P P P NS VAppleseed Fund 1 R R R R NS NS P P P NS P VAriel Appreciation Fund 2 NS X NS X NS NS NS NS NS NS NS VAriel Focus Fund NS X NS X NS NS NS NS NS NS NS VAriel Fund NS X NS X NS NS NS NS NS NS NS VAzzad Ethical Income Fund 3 X X X X NS NS NS NS NS NS NS VAzzad Ethical Mid Cap Fund X X X X NS NS NS NS NS NS NS VBrighter Student Fund 4 X X X X X X X X X P X X Fund Alcohol Tobacco Gambling Defense Weapons Animal Testing Products Services Environment Human Rights Labor Relations Employment Equality Community Investment Proxy VotingCalvert Aggressive Allocation Fund 5 X X X R R P P P P P P VCalvert Capital Accumulation A 6 X X X R R P P P P P P VCalvert Capital Accumulation B 7 X X X R R P P P P P P VCalvert Capital Accumulation C 8 X X X R R P P P P P P VCalvert Conservative Allocation Fund 9 X X X R R P P P P P P VCalvert Global Alternative Energy Fund A 10 NS NS NS NS NS P P P P P NS VCalvert Global Water Fund 11 X NS NS X NS X NS P NS NS NS VCalvert International Opportunities Fund 12 R R NS NS NS P P P P P NS VCalvert Large Cap Growth A X X X R R P P P P P P VCalvert Large Cap Growth B X X X R R P P P P P P VCalvert Large Cap Growth C X X X R R P P P P P P VCalvert Large Cap Growth I X X X R R P P P P P P VCalvert Mid Cap Value Fund X X X R R P P P P P P VCalvert Moderate Allocation Fund X X X R R P P P P P P VCalvert New Vision Small Cap A X X X R R P P P P P P VCalvert New Vision Small Cap B X X X R R P P P P P P VCalvert New Vision Small Cap C X X X R R P P P P P P V Fund Alcohol Tobacco Gambling Defense Weapons Animal Testing Products Services Environment Human Rights Labor Relations Employment Equality Community Investment Proxy VotingCalvert Small Cap Value Fund X X X R R P P P P P P VCalvert Social Index A X X X R R P P P P P P VCalvert Social Index B X X X R R P P P P P P VCalvert Social Index C X X X R R P P P P P P VCalvert Social Index I X X X R R P P P P P P VCalvert Social Investment Balanced A X X X R R P P P P P P VCalvert Social Investment Balanced C X X X R R P P P P P P VCalvert Social Investment Bond A X X X R R P P P P P P VCalvert Social Investment Enhanced Equity A X X X R R P P P P P P VCalvert Social Investment Enhanced Equity B X X X R R P P P P P P VCalvert Social Investment Enhanced Equity C X X X R R P P P P P P VCalvert Social Investment Equity A X X X R R P P P P P P VCalvert Social Investment Equity C X X X R R P P P P P P VCalvert Social Investment Equity I X X X R R P P P P P P VCalvert World Values International A X X NS R NS P P P P P P VCalvert World Values International C X X NS R NS P P P P P P VCRA Qualified Investment 13 NS NS NS NS NS NS NS NS NS NS P X Fund Alcohol Tobacco Gambling Defense Weapons Animal Testing Products Services Environment Human Rights Labor Relations Employment Equality Community Investment Proxy VotingDomini European PacAsia Social Equity A 14 X X X X NS P P P P P NS VDomini European PacAsia Social Equity I 15 X X X X P P P P P P NS VDomini European Social Equity A X X X X NS P P P P P NS VDomini European Social Equity I X X X X NS P P P P P NS VDomini Institutional Social Equity X X X X NS P P P P P NS VDomini PacAsia Social Equity A X X X X NS P P P P P NS VDomini PacAsia Social Equity I X X X X NS P P P P P NS VDomini Social Bond 16 X X X X NS P P P P P P VDomini Social Equity A X X X X NS P P P P P NS VDomini Social Equity I X X X X NS P P P P P NS VEpiphany Faith and Family Values 100 Fund A Class 17 18 R R R R NS NS P P P P NS VEpiphany Faith and Family Values 100 Fund C Class R R R R NS NS P P P P NS VEpiphany Faith and Family Values 100 Fund N Class R R R R NS NS P P P P NS VGabelli SRI Green Fund Inc A 27 R R R X NS P P NS NS NS NS VGabelli SRI Green Fund Inc AAA 27 R R R X NS P P NS NS NS NS VGabelli SRI Green Fund Inc C R R R X NS P P NS NS NS NS VGabelli SRI Green Fund Inc I R R R X NS P P NS NS NS NS VGreen Century Balanced 19 NS X NS R R P P NS NS NS NS VGreen Century Equity X X X R NS P P P P P NS VIntegrity Growth and Income Fund 20 X X X NS R NS P R R R NS V Fund Alcohol Tobacco Gambling Defense Weapons Animal Testing Products Services Environment Human Rights Labor Relations Employment Equality Community Investment Proxy VotingLegg Mason Prt Social Awareness Fund A NS R NS R NS NS P P P P NS VLegg Mason Prt Social Awareness Fund B NS R NS R NS NS P P P P NS VMerrion Stockbrokers Social Awareness Fund C NS R NS R NS NS P P P P NS VPraxis Growth Index Fund A 21 X X X X NS P P P P P P VPraxis Growth Index Fund I X X X X NS P P P P P P VPraxis Impact Bond Fund A X X X X NS P P P P P P VPraxis Impact Bond Fund I X X X X NS P P P P P P VPraxis International Index Fund A X X X X NS P P P P P P VPraxis International Index Fund I X X X X NS P P P P P P VPraxis Small Cap Index Fund A X X X X NS P P P P P P VPraxis Small Cap Index Fund I X X X X NS P P P P P P VPraxis Value Index Fund A X X X X NS P P P P P P VPraxis Value Index Fund I X X X X NS P P P P P P VNeuberger Berman Socially Resp Inv 22 X X X X R P P P P P NS VNew Alternatives Fund 23 X X X X X P P P P P P X Fund Alcohol Tobacco Gambling Defense Weapons Animal Testing Products Services Environment Human Rights Labor Relations Employment Equality Community Investment Proxy VotingParnassus Core Equity Fund 24 X X X X R P P P P P NS VParnassus Fund 25 X X X X R P X P P P P VParnassus Income Fixed Income 26 X X X X R P X P P P NS VParnassus Mid Cap Fund 27 X X X X R P P P P P P VParnassus Small Cap Fund X X X X R P X P P P P VParnassus Endeavor Fund X X X X R P X P P P P VPax World Balanced R X R R R P P P P P P VPax World Growth R X R R R P P P P P NS VPax World High Yield R X R R R P P P P P P VPax World Value Fund Individual Investor NS X R X R P P P P P NS VPax World Value Fund Institutional Class NS X R X R P P P P P NS VPax World Women s Equity Fund Individual Investor NS X R X R R R NS R R NS VPax World Women s Equity Fund Institutional Class NS X R X R R R R R R NS VPortfolio 21 28 NS X R R R P P R R R P VPortfolio 21 Institutional 29 NS X R R R P P R R R NS VSentinel Sustainable Core Opportunities Fund 30 X X X R R P P P P P NS VSentinel Sustainable Emerging Companies Fund X X X R R P P P P P NS VSPDR Gender Diversity Index ETF SHE X X X X X X X P P P NS VTIAA CREF R R R R NS P P P P P NS VFlex Total Return Utilities Fund 31 X X X X X P P NS P P NS VVanguard FTSE Social Index Fund 32 X X X X X NS X X NS NS NS NSWVH Ethical Inc Social Balanced Fund X X R X R P P P P P P VWVH Ethical Inc Social Equity Fund X X R X R P P P R P X VWVH Ethical Inc Green Growth Fund 33 R R R R R P P NS NS NS NS VxRussell 3000 28 NS NS NS NS NS NS NS NS NS NS NS XSeparately managed accounts Edit According to the 2014 Report on US Sustainable Responsible and Impact Investing Trends among separate account managers 214 distinctive separate account vehicles or strategies with 433 billion in assets incorporated ESG factors into investment analysis Where a separate account is subject to ERISA there are legal limitations on the extent to which investment decisions can be based on factors other than maximizing plan participants economic returns 24 Shareholder advocacy Edit Shareholder resolutions are filed by a wide variety of institutional investors including public pension funds faith based investors socially responsible mutual funds and labor unions In 2004 faith based organizations filed 129 resolutions while socially responsible funds filed 56 resolutions 29 Regulations governing shareholder resolutions vary from country to country In the United States they are determined primarily by the Securities and Exchange Commission which regulates mutual funds and applies the 1940 Act 30 and by the Department of Labor which regulates certain plans and applies ERISA 31 These regulatory regimes require pension plans and mutual funds to disclose how they voted on behalf of their investors 32 U S shareholders have organized various groups to facilitate jointly filing resolutions These include the Council of Institutional Investors the Interfaith Center on Corporate Responsibility and the US SIF From 2012 to 2014 more than 200 US institutions and investment management firms filed or co filed proposals These institutions and money managers collectively controlled 1 72 trillion in assets at the end of 2013 The top categories of environmental and social issues from 2012 to 2014 were political contributions and climate change and environmental issues 33 Community investing Edit Community investing a subset of socially responsible investing allows for investment directly into community based organizations Community investing institutions use investor capital to finance or guarantee loans to individuals and organizations that have historically been denied access to capital by traditional financial institutions These loans are used for housing small business creation and education or personal development in the US and UK 34 or are made available to local financial institutions abroad to finance international community development The community investing institution typically provides training and other types of support and expertise to ensure the success of the loan and its returns for investors 35 Community investing grew almost 5 from 2012 to 2014 Assets held and invested locally by community development financial institutions CDFIs based in the US totaled 64 3 billion at the start of 2014 up from 61 4 billion in 2012 Investing strategies EditInvesting in capital markets Edit Social investors use several strategies to maximize financial return and attempt to maximize social good These strategies seek to create change by shifting the cost of capital down for sustainable firms and up for the non sustainable ones The proponents argue that access to capital is what drives the future direction of development A growing number of rating agencies collects both raw data the ESG behaviour of firms as well as aggregates this data in indices 36 After several years of growth the rating agency industry has recently been subject to a consolidation phase that has reduced the number of genesis through mergers and acquisitions 37 ESG integration Edit ESG integration is one of the most common responsible investment strategies and entails the incorporation of environmental social and governance ESG criteria into the fundamental analysis of equity investments According to the non profit Investor Responsibility Research Center institute IRRCi approaches to ESG integration vary greatly among asset managers depending on 38 Management Who is responsible for ESG integration within the organization Research What ESG criteria and factors are being considered in the analysis Application How are the ESG criteria being applied in practice Negative screening Edit Negative screening excludes certain securities from investment consideration based on social or environmental criteria For example many socially responsible investors screen out tobacco company investments The longest running SRI index the Domini 400 now the MSCI KLD 400 was started in May 1990 It has continued to perform competitively with average annualized total returns of 9 51 through December 2009 compared with 8 66 for the S amp P 500 39 Despite this impressive growth it has long been commonly perceived that SRI brings smaller returns than unrestricted investing So called sin stocks including purveyors of tobacco alcohol gambling and defense contractors were banned from portfolios on moral or ethical grounds And shutting out entire industries hurts performance the critics said 40 However in a comprehensive study financial economists Lobe Roithmeier and Walkshausl taking the position of the advocatus diaboli answer the question whether to invest in a socially responsible way or not They create a set of global and domestic sin indexes consisting of 755 publicly traded socially irresponsible stocks around the world belonging to the Sextet of Sin adult entertainment alcohol gambling nuclear power tobacco and weapons They compare their stock market performance directly with a set of virtue comparables consisting of the most important international socially responsible investment indexes They find no compelling evidence that ethical and unethical screens lead to a significant difference in their financial performance which is in contrast with the results of prior studies on sinful investing 41 Divestment Edit Divesting is the act of removing stocks from a portfolio based on mainly ethical non financial objections to certain business activities of a corporation Recently CalSTRS California State Teachers Retirement System announced the removal of more than 237 million in tobacco holdings from its investment portfolio after six months of financial analysis and deliberations Shareholder activism Edit Shareholder activism efforts attempt to positively influence corporate behavior 42 These efforts include initiating conversations with corporate management on issues of concern and submitting and voting proxy resolutions These activities are undertaken with the belief that social investors working cooperatively can steer management on a course that will improve financial performance over time and enhance the well being of the stockholders customers employees vendors and communities Recent movements have also been reported of investor relations activism in which investor relations firms assist groups of shareholder activists in an organized push for change within a corporation This is done typically by leveraging their enhanced knowledge of the corporation its management often via direct relationships and the securities laws as a whole 43 Hedge funds are also major activist investors while some pursue socially responsible investing goals many simply are seeking to maximize fund returns 44 Pension plans subject to ERISA are somewhat more constrained in their ability to engage in shareholder activism or the use of plan assets to promote public policy positions any expenditure of plan assets must be aimed at enhancing participants retirement income 45 Shareholder engagement Edit A less vocal subtype of shareholder activism shareholder engagement requires extensive monitoring of the non financial performance of all portfolio companies In shareholder engagement dialogues investees receive constructive feedback on how to improve ESG issues within their sphere of influence 46 Positive investing Edit Positive investing is the new generation of socially responsible investing 40 It involves making investments in activities and companies believed to have a positive social impact Positive investing suggested a broad revamping of the industry s methodology for driving change through investments 47 This investment approach allows investors to positively express their values on corporate behavior issues such as social justice and the environment through stock selection without sacrificing portfolio diversification or long term performance 48 Positive screening pushes the idea of sustainability not just in the narrow environmental or humanitarian sense but also in the sense of a company s long term potential to compete and succeed 40 In 2015 Morgan Stanley conducted a review of 10 000 funds and concluded strong sustainability investments outperformed weak sustainability investments 49 tackling the idea of a trade off between positive impact and financial return 50 while the Global Impact Investing Network s 2015 report on benchmarks and returns in impact investing in private equity and venture capital found market rate or market beating returns were common in impact investments 51 Impact investing Edit Impact investing is the alternative investment i e private equity approach to Positive investing In 2014 the UK s presidency of the G8 created a Social Impact Investment Task Force which produced a series of reports that defined impact investing as those that intentionally target specific social objectives along with a financial return and measure the achievement of both 52 Impact investing capitalizes businesses that potentially provide social or environmental impact at a scale that purely philanthropic interventions usually cannot reach 53 This capital may be in a range of forms including private equity debt working capital lines of credit and loan guarantees Examples in recent decades include many investments in microfinance community development finance and clean technology Impacting investing has its roots in the venture capital community and an investor will often take active role mentoring or leading the growth of the company or start up Community investment Edit By investing directly in an institution rather than purchasing stock an investor is able to create a greater social impact money spent purchasing stock in the secondary market accrues to the stock s previous owner and may not generate social good while money invested in a community institution is put to work For example money invested in a Community Development Financial Institution may be used by that institution to alleviate poverty or inequality spread access to capital to under served communities support economic development or green business or create other social good In 1984 Trillium Asset Management s founder Joan Bavaria invited Chuck Matthei of the Institute for Community Economics ICE an organization that helps communities create and sustain land trusts to a meeting of US SIF It is likely that this was the first time a nonprofit organization with a loan fund would meet directly with SRI managers Trillium clients began investing in ICE later that year Global context EditSocially responsible investing is a global phenomenon With the international scope of business itself social investors frequently invest in companies with international operations As international investment products and opportunities have expanded so have international SRI products The ranks of social investors are growing throughout developed and developing countries In 2006 the United Nations Environment Programme launched its Principles for Responsible Investment which provide a framework for investors to incorporate environmental social and governance ESG factors into the investment process PRI has more than 1 500 signatories managing more than US 60 trillion of assets 54 The Global Sustainable Investment Alliance GSIA is a collaboration of membership based sustainable investment organisations around the world including the European Sustainable Investment Forum Eurosif UK Sustainable Investment and Finance Association UKSIF the Responsible Investment Association Australasia RIAA Responsible Investment Association RIA Canada the Forum for Sustainable and Responsible Investment US SIF Dutch Association of Investors for Sustainable Development VBDO and Japan Sustainable Investment Forum The GSIA s mission is to deepen the impact and visibility of sustainable investment organizations at the global level The Global Sustainable Investment Review 2018 the fourth edition of this biennial report continues to be the only report collating results from the market studies of regional sustainable investment forums from Europe the United States Japan Canada and Australia and New Zealand It provides a snapshot of sustainable investing in these markets at the start of 2018 by drawing on the in depth regional and national reports from GSIA members Eurosif Japan Sustainable Investment Forum JSIF Responsible Investment Association Australasia RIA Canada and US SIF This report also includes data on the African sustainable investing market from the African Investing for Impact Barometer and on Latin America from the Principles for Responsible Investment The 2018 report shows that globally sustainable investing assets in the five major markets stood at US 30 7 trillion at the start of 2018 a 34 increase in two years From 2016 to 2018 the fastest growing region has been Japan followed by Australia New Zealand and Canada These were also the three fastest growing regions in the previous two year period The largest three regions based on the value of their sustainable investing assets were Europe the United States and Japan An 2020 global analysis from Morningstar indicates that assets in sustainable funds reached nearly 1 7 trillion 55 Net flows into U S sustainable funds surpassed 51 billion 56 57 ESG ratings agencies EditAsset managers and other financial institutions increasingly rely on ESG ratings agencies to assess measure and compare companies ESG performance 58 Sustainsalytics RepRisk are two examples of dedicated ESG ratings agencies while global credit agencies like S amp P Global are also seeing the value to adding ESG ratings to their data offerings 59 Responsible ethical and impact investing in Australia EditAccording to the Responsible Investment Association Australasia s annual Responsible Investment Benchmark Report Australia 2020 in 2019 and for a 19th consecutive year funds managed under responsible investment approaches grew as a proportion of total professionally managed investments in Australia to AU 1 149 billion in assets under management a rise of 17 from 2018 Ever more investment managers are applying a range of responsible investing approaches from ESG integration and negative screening to sustainability themed and impact investing The report shows that in Australian and multi sector responsible investment funds outperformed mainstream funds over 1 3 5 and 10 year time horizons Australian responsible investment managers still favour ESG integration and corporate engagement and voting above negative and norms based screening as their primary responsible investment approaches for constructing portfolios but managers are increasingly driving capital towards sustainability themed and impact investing allocations with allocations to Green Social and Sustainability Bonds more than doubling since last year Negative screening of fossil fuels by the responsible investment industry is beginning to catch up to consumer interest In 2018 only 5 of responsible investment AUM for survey respondents who conduct negative screening was screened for fossil fuels In 2019 19 of responsible investment AUM has been screened for fossil fuels growing 14 percentage points from the year before For consumers using RIAA s Responsible Returns search and compare tool for ethical investments the most important exclusionary screens are fossil fuels human rights abuses and armaments Responsible ethical and impact investing in New Zealand EditThe Responsible Investment Association Australasia s annual Responsible Investment Benchmark Report New Zealand 2020 details the size growth depth and performance of the New Zealand responsible investment market over 12 months to 31 December 2019 and compares these results with the broader New Zealand financial market In 2019 funds managed under responsible investment approaches grew as a proportion of total professionally managed investments in New Zealand to NZ 153 5 billion in 2019 This represents 52 of the estimated NZ 296 billion of total professionally managed assets under management in New Zealand Increasingly responsible investors in New Zealand have shifted their focus from screening out harmful industries such as tobacco and armaments to considering broader environmental social and corporate governance ESG factors when investing Impact investing has grown over 13 times from NZ 358 million in 2018 to NZ 4 74 billion in 2019 Green Social and Sustainability GSS Bonds account for 88 of products using this approach Ethical investment in the UK EditIn 1985 Friends Provident launched the first ethically screened investment fund with criteria which excluded tobacco arms alcohol and oppressive regimes 60 Since 1985 over 90 investment funds have launched offering a wide range of investment criteria both negatively screened and with positive investment criteria i e investing into companies involved in promoting sustainability Since 1985 most of the major investment organizations have launched ethical and socially responsible funds although this has led to a great deal of discussion and debate over the use of the term ethical investment 61 This is because each of the fund management organizations tend to apply a slightly different approach to running their funds In recent years there has been growth in the market for high social impact investments this is a style of investing where the businesses receiving investment have social or environmental goals as a primary purpose citation needed 62 UK institutions are also getting more involved in social investing through impact investing funds with those such as Deutsche Bank and NESTA alongside other institutions such as Big Issue Invest which is part of The Big Issue group As of June 2014 EIRIS estimated that there was over 13 5 billion invested in Britain s green and ethical retail funds This estimate is based on around 85 UK domiciled green or ethical retail funds and it seeks to not include UK money invested in ethical funds domiciled outside of the UK 63 In higher education EditIn 2007 the Dwight Hall organization at Yale University launched the first undergraduate run socially responsible investment fund in the United States known as the Dwight Hall Socially Responsible Investment Fund 64 65 Comparison with conventional investing EditWhile conventional investing only focuses on the traditional risk and returns considerations in making investment decisions socially responsible investing considers other ethical factors as discussed above Hence the question often arise as to whether it pays financially to be ethical or not in making investment decisions The debate as to whether there is anything to gain or lose by deciding to be ethical and socially responsible in making investment decisions is still ongoing Several studies have found that there is no conclusive evidence as to whether the performances of socially responsible investments outperform those of conventional and vice versa Comparing portfolio and fund performance Edit Several studies in various places have analysed the performance of socially responsible investing SRI and conventional investing CI using different models and methodologies for measuring performance Using the Carhart four factor model 66 found that an approach where stocks with high SRI scores are bought while those with low SRI scores are sold off produced a positive abnormal performance of up to 8 7 per annum suggesting that investors can achieve their ethical goals without hurting their financial performance 67 also using the Carhart four factor model noted an excess return of 7 for environmentally friendly firms However 68 using a similar approach found the performance of SRI stocks to be not statistically different from those of conventional stocks In contrast 69 also using the Carhart four factor model found a portfolio which included sin stocks alcohol tobacco gaming to be significantly outperforming similar comparable stocks which indicates that investors in SRI stocks might be losing However after controlling for managerial skills transaction costs and fees 70 found no outperformance between portfolios which include sin stocks and comparable SR portfolios Some other studies have compared the performance of SRI funds with conventional funds While some studies used only the capital asset pricing model to compare performance 71 72 others used multifactor models such as the Fama French three factor model and Carhart four factor model 73 74 75 76 77 78 79 These studies found no statistically significant difference in performance between the SRI and conventional funds Comparing stock market index performance Edit Considering that difference in performance of funds may be due to portfolio selection construction process and or the ability of fund managers and not necessarily on the nature of investments themselves some studies have compared the performance of stock market indices instead Two of the pioneer studies compared the performance of the Domini 400 Social Index with the S amp P 500 80 81 The Sharpe ratio and the capital asset pricing model were used to estimate Jensen s alpha for the comparison and no significant difference was found in the performance of the two indices A follow up study compared the performance of four SRI indices Domini 400 Social Index Calvert Social Index Citizen s Index and Dow Jones Sustainability Indices US Index with the S amp P 500 index between 1990 and 2004 and found that returns on the SRI indices exceeded returns on S amp P 500 even though they were not statistically significant 82 Others focused only on the US 82 and on outside the US by studying the performance of 29 SRI indices globally 83 Using the capital asset pricing model to estimate Jensen s alpha as the performance indicator no significant evidence of under over performance was found A comparison of the performance of SR indices with conventional indices on a global scale using marginal conditional stochastic dominance found there is strong evidence that there is a financial price to be paid for socially responsible investing 84 A more recent study showed that improvements in CSR reputation enhance profits 85 See also EditBlended value Business ethics Community wind energy Corporate social responsibility Climate related asset stranding Development impact bond Disinvestment Eco investing Environmental social and corporate governance Ethical banking Fossil fuel divestment Integrated reporting Impact investing Microfinance Philanthrocapitalism Sharia investments Social finance Social impact bond Social responsibility Sustainable development Terror free investing Vice FundReferences Edit a b Hirst Scott 2016 10 01 Social Responsibility Resolutions The Harvard Law School Program on Corporate Governance Discussion Paper No 2016 06 C Logue Ann Socially Responsible Investing For Dummies Wiley com p 196 Lemke and Lins Regulation of Investment Advisers 2 158 Thomson West 2014 Sullivan Paul With Impact Investing a Focus on More Than Returns April 23 2010 Bradley Theresa Finally socially responsible investors can measure their impact September 24 2011 Domini Amy 14 March 2011 Want to Make a Difference Invest Responsibly The Huffington Post Retrieved 26 November 2011 ESG ratings are not perfect but can be a valuable tool for asset managers KPMG China KPMG 2020 10 07 Retrieved 2021 01 26 The Evolution of Socially Responsible Investing Retrieved 30 October 2006 The Investment FAQ Strategy Socially Responsible Investing Retrieved 30 Oct 2006 Students for Bhopal Student Power Crushes Dow Archived May 14 2007 at the Wayback Machine Gray Hillel New Directions in the Investment and Control of Pension Funds DC Investor Responsibility Research Center 1983 p 36 37 Gray 1983 p 34 Richardson Benjamin J Socially Responsible Investment Law Regulating the Unseen Polluters Oxford University Press 2008 Coalition for Environmentally Responsible Economies Ceres 2013 06 25 Retrieved 2013 07 25 The premier industry conference for socially responsible investing in the United States of America SRI in the Rockies Retrieved 2013 07 25 Sudan Divestment Task Force Home Sudandivestment org Retrieved 2013 07 25 Jackson Kevin T Building Reputational Capital Strategies for Integrity and Fair Play That Improve the Bottom Line Oxford University Press 2004 Sullivan Paul August 14 2015 With an Eye to Impact Investing Through a Gender Lens The New York Times Retrieved May 18 2016 Lemke and Lins Regulation of Investment Advisers 2 158 Thomson West 2014 Ethical Guidelines for the Government Pension Fund Global Archived from the original on 3 September 2007 Retrieved 19 September 2007 CAAT Campaigns Clean Investment launch 2007 Caat org uk Retrieved 2013 07 25 EthicalInvestmentedinburgh 2007 11 09 Ethical Investment Blog Liverpool Council Disinvests from BAE Ethicalinvestmentedinburgh blogspot com Retrieved 2013 07 25 Greens Edinburgh Edinburgh and Midlothian Greens Blog Archive Greens continue fight for ethical pensions Lib Dem councillors under fire for ignoring party policy Edinburghgreens org uk Retrieved 2013 07 25 a b Lemke and Lins ERISA for Money Managers 2 122 2 124 Thomson West 2014 Lemke Lins and Smith Regulation of Investment Companies 5 02 2 Matthew Bender 2014 Voyageur About Access Capital Strategies Archived from the original on January 6 2009 Retrieved July 1 2009 a b The Gabelli SRI Green Fund Archived from the original on June 15 2009 Retrieved July 1 2009 Socially Responsible Mutual Fund Charts Fund Profiles Russel 3000 Archived from the original on July 23 2012 185 Religious Social Investor Proxy Resolutions Iccr org Interfaith Center on Corporate Responsibility 2004 02 03 Archived from the original on March 30 2012 Retrieved 2013 07 25 Lemke Lins and Smith Regulation of Investment Companies Matthew Bender 2014 Lemke and Lins ERISA for Money Managers Thomson West 2014 ICCR Advocate eNewsletter February 2007 PDF Archived from the original PDF on June 14 2007 Retrieved May 15 2007 US Sustainable Responsible and Impact Investing Trends PDF US SIF 2014 Social investment www cafonline org Retrieved 2018 01 31 US SIF The Forum for Sustainable and Responsible Investment Community Investing Ussif org Retrieved 2014 04 01 Escrig Olmedo et al 2010 Socially responsible investing sustainability indices ESG rating and information provider agencies International Journal of Sustainable Economy 2 4 442 461 doi 10 1504 IJSE 2010 035490 S2CID 153782316 Avetisyan amp Hockerts 2017 The consolidation of the ESG rating industry as an enactment of institutional retrogression PDF Business Strategy and the Environment 26 3 316 330 doi 10 1002 bse 1919 hdl 10398 169d3c76 e96f 489e a353 967745d90e62 First ever Typology Helps Investors Navigate Varied Approaches to ESG Integration IRRC institute 25 April 2017 Retrieved 13 September 2018 Socially Responsible Investing Top 10 Frequently Asked Questions and Answers PDF Ussif org Retrieved 2013 07 25 a b c Wine Elisabeth 1 August 2009 SRI Plows the Path to Profitability On Wall Street Archived from the original on 19 July 2011 Lobe Sebastian Walkshausl Christian 7 August 2009 Vice vs Virtue Investing Around the World doi 10 2139 ssrn 1089827 SSRN 1089827 Cite journal requires journal help Cundill Smart amp Wilson 2018 Non financial Shareholder Activism A Process Model for Influencing Corporate Environmental and Social Performance International Journal of Management Reviews 20 2 606 626 doi 10 1111 ijmr 12157 hdl 1826 12686 Carther Shauna 18 September 2009 Socially Responsible Mutual Funds Investopedia com Retrieved 2013 07 25 Lemke Lins Hoenig and Rube Hedge Funds and Other Private Funds 6 43 Thomson West 2014 Lemke and Lins ERISA for Money Managers 2 94 2 96 Thomson West 2014 One of the SRI labels of French research centre Novethic is for engagement funds like the funds initiated by Fondation Guile Lewis Geoff 1 June 2005 Advocacy Investing Catnip for Wealthy Clients Overland Park Registered Rep Retrieved 12 May 2005 Wells Angela July 2004 New Financial Study Shows Stocks Can Reflect Investor Values without Sacrificing Performance Yahoo Finance Sunnyvale Retrieved 12 May 2005 Morgan Stanley Sustainable Investing Performance Retrieved 14 July 2015 Does Social Impact Demand Financial Sacrifice Wharton Retrieved 14 July 2015 Introducing the Impact Investing Benchmark PDF GIIN Retrieved 12 August 2015 G8 Social Impact Investment Task Force Investing for Social and Environmental Impact January 2009 Monitor Institute Impact Investment the Invisible Heart of Markets September 2014 PRI AR 2016 PRI at 10 annualreport unpri org Retrieved 2016 08 06 Jessop Simon Howcroft Elizabeth 2021 01 28 Sustainable fund assets hit record 1 7 trln in 2020 Morningstar Reuters Retrieved 2021 02 12 Hale Jon January 28 2021 A Broken Record Flows for U S Sustainable Funds Again Reach New Heights Morningstar com Retrieved 2021 02 12 Adamczyk Alicia 2021 02 11 Sustainable investments hit record highs in 2020 and they re earning good returns CNBC com Retrieved 2021 02 12 Huber Betty 27 July 2017 ESG Reports and Ratings What they are why they matter Harvard Law School Retrieved 13 September 2018 Credit Ratings Agencies Join The Battle for ESG Supremacy Financial Times Retrieved 26 January 2021 Ethical Investment What it is and how it works or doesn t Corporate Watch Magazine Corporate Watch Magazine Retrieved 11 June 2015 Denham Annabel Ethical investment can be a risky business City AM Retrieved 12 August 2015 Impact Investing Trends Report PDF The GIIN EIRIS Key facts amp statistics http www eiris org news statistics html Jerilyn Klein Bier 2010 12 01 College Students Drive SRI Efforts Fa mag com Retrieved 2013 07 25 CS1 maint multiple names authors list link First Investment of Dwight Hall at Yale SRI Fund press release Csrwire com 2010 03 08 Retrieved 2013 07 25 Kempf A and Osthoff P 2007 The effect of socially responsible investing on financial performance European Financial Management 13 908 922 Chan P T and Walter T 2014 Investment performance of environmentally friendly firms and their initial public offers and seasoned equity offers Journal of Banking and Finance 44 177 188 Statman M and Glushkov D 2009 The wages of social responsibility Financial Analysts Journal 65 33 46 Hong H and Kacperczyk M 2009 The price of sin the effects of social norms on markets Journal of Financial Economics 93 5 36 Humphrey J E and Tan D T 2013 Does it really hurt to be responsible Journal of Business Ethics 1055 https doi org 10 1007 s1 013 1741 z Hamilton S Jo H and Statman M 1993 Doing well while doing good The investment performance of socially responsible mutual funds Financial Analysts Journal 49 62 66 Mallin C Saadouni B and Briston R 1995 The financial performance of ethical investment funds Journal of Business Finance and Accounting 22 483 496 Amenc N and Sourd V 2008 Socially Responsible Investment Performance in France EDHEC Risk Institute Bauer R Koedijk K and Otten R 2005 International evidence on ethical mutual fund performance and investment style Journal of Banking and Finance 29 1751 1767 Fernandez A and Matallin J 2008 Performance of Ethical Mutual Funds in Spain Sacrifice or Premium Journal of Business Ethics 81 247 260 Geczy C Stambaugh F and Levin D 2005 Investing in Socially Responsible Mutual Funds Available at SSRN http ssrn com abstract 416380 Gregory A Matatko J and Luther R 1997 Ethical unit trust financial performance Small company effects and fund size effects Journal of Business Finance and Accounting 24 705 725 Kreander N Gray G Power D and Sinclair C 2005 Evaluating the performance of ethical and non SRI funds A matched pair analysis Journal of Business Finance and Accounting 32 1465 1493 Munoz F Vargas M and Marco I 2013 Environmental mutual funds financial performance and managerial abilities Journal of Business Ethics 1055 https doi org 10 1007 s1 013 1893 x Sauer D 1997 The impact of social responsibility screens on investment performance Evidence from the domini 400 social index and domini equity fund Review of Financial Economics 6 23 35 Statman M 2000 Socially responsible mutual funds Financial Analysts Journal 56 30 39 a b Statman M 2006 Socially responsible indexes composition performance and tracking error Journal of Portfolio Management 32 100 109 Schroder M 2007 Is there a difference The performance characteristics of SRI equity indices Journal of Business Finance and Accounting 34 331 348 Belghitar Yacine Clark Ephraim Deshmukh Nitin 2014 10 01 Does it pay to be ethical Evidence from the FTSE4Good Journal of Banking amp Finance 47 54 62 doi 10 1016 j jbankfin 2014 06 027 ISSN 0378 4266 Johnson Zachary Ashoori Minoo Lee Yun 2018 Self Reporting CSR Activities When Your Company Harms Do You Self Disclose Corporate Reputation Review 21 4 153 164 doi 10 1057 s41299 018 0051 x S2CID 170000354 External links EditUN Principles for Responsible Investment Moskowitz Prize Quantitative Research in the field of Socially Responsible Investing Socially Responsible Investing at Appropedia Socially Responsible Investing Basics from the Forum for Sustainable and Responsible Investment The World Bank 2010 Water and Climate Change Understanding the Risks and Making Climate Smart Investment Decisions Invest with Values The Investor s Gateway to Socially Responsible Investing resources topics and organizations Retrieved from https en wikipedia org w index php title Socially responsible investing amp oldid 1060377750, wikipedia, wiki, book,

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