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Sustainable Investing Glossary

Socially responsible investing

An investment strategy that seeks to consider both financial returns and social good.

Sometimes also referred to as Sustainable Investing, although this term is considered to be broader (see Sustainable Investing). 

An investment is considered socially responsible because of the nature of the business the company conducts. Common themes for socially responsible investments include avoiding investment in companies that produce or sell addictive substances (like alcohol, gambling and tobacco) and seeking out companies engaged in social justice, environmental sustainability and alternative energy/clean technology efforts. Socially responsible investments can be made in individual companies or through a socially conscious mutual fund or exchange-traded fund (ETF). 

One example of socially responsible investing is community investing, which goes directly toward organizations that have a track record of social responsibility through helping the community and have been unable to garner funds from other sources, such as banks and financial institutions. The funds allow these organizations to provide services to their communities, such as affordable housing and loans. The goal is to improve the quality of the community by reducing its dependency on government assistance such as welfare, which in turn has a positive impact on the community’s economy.

Creating returns that benefit the world we live in
Creating returns that benefit the world we live in
Sustainable investing
Podcast: Our man in Hong Kong
Podcast: Our man in Hong Kong
Arnout van Rijn has been investing in Asia for 25 years; for more than half of this time, he has lived in Hong Kong.
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The unique climate change risks facing insurers
The unique climate change risks facing insurers
Climate change has become undeniable, and no industry has greater exposure to its risks than the insurance sector.
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Podcast: Straight talking about a circular future
Podcast: Straight talking about a circular future
Is rebuilding the global economy after Covid-19 an opportunity to fundamentally reboot economic systems?
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