Responsible Investing on the Rise

According to recent studies by the CFA Institute, many people are looking to expand their concern for sustaining the environment to their investment portfolios.  In a publication released earlier this year, the CFA Institute noted the following.

A growing number of people are extending their social consciousness beyond driving hybrid vehicles or drinking fair trade coffee to pursuing a socially responsible investment strategy that reflects their values and core beliefs.... Socially responsible investing (SRI) integrates financial objectives with social and environmental objectives. SRI assets are growing at a faster pace than the broader universe of all investment assets under professional management.

In addition, those same investors are clamoring for stronger corporate governance and risk management within the companies that they are considering for investment.  Yesterday, the Financial Times quoted a proponent of responsible investing.

“Responsible investors benefit from better risk management, greater transparency, and an active engagement with companies to promote better management,” says Helena Vines Fiestas, a policy analyst for Oxfam. “Social, environmental and governance issues are also key features of their investment analysis. In this climate, responsible investors offer a real way forward.”

What's good for the environment can also be good for companies looking to navigate the ever changing world in which we live.