The definition of 'Socially responsible investing'
Socially responsible investing (SRI) is an investment strategy which looks to be positive both in terms of the financial returns for investors and in its social impact. This can therefore include investment into companies in many different spheres, including; green technology, biotech and medical technology. It also therefore avoids investment into less ethical companies which promote harmful and potentially addictive substances such as tobacco, gambling and oil.
Investment itself can be carried out through a number of different vehicles including ETFs, funds and individual investments. Whilst there is no one specific definition for SRI, in general the strategy involves investing in companies or firms that follow the below points.
- Having a clear social and/or environmental mission set out in their governing documents
- Generating the majority of their income through trade
- Reinvesting the majority of their profits
- Promoting environmental stewardship
- Being accountable and transparent
With a greater focus on environmental change and global warming, a greater number of funds have been divesting, removing fossil fuels from their portfolio to focus on clean technology, which is becoming more profitable according to The Guardian.
Many of SyndicateRoom’s investment opportunities fall under the bracket of socially responsible investing, with portfolio companies that specialise in green technology, biotech and medical devices and which aim to provide a positive social impact for the future.