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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
Climate risk and portfolio decarbonization have become center stage
Climate risk and portfolio decarbonization have become center stage
Insurance companies are directly exposed to climate risk, and face increasingly tighter scrutiny from regulators regarding its impact on their balance sheets.
14-01-2021 | Interview
Why human production needs to go on a diet
Why human production needs to go on a diet
The weight of man-made objects on Earth now exceeds the mass of all living things, new research reveals.
13-01-2021 | Stunning statistics
Letter from the CIO: Stay contrarian
Letter from the CIO: Stay contrarian
Keep questioning the consensus in 2021, says Victor Verberk, Robeco’s CIO Fixed Income and Sustainability.
07-01-2021 | Insight