SRI occurs when individuals, banks, superannuation, and other types of funds invest in companies that are socially responsible in their actions. However, SRI is hard to define as it is forever changing with the norms and values of society. There are three main areas when we talk about how socially responsible a company or investment decision is, including, environmental, social, and corporate governance (ESG).
ESG
ESG is a term used a lot when socially conscious investors want to evaluate whether they invest in a company. Measuring these criteria and giving a score gives people the ability to factor social responsibility in their investment decisions. E stands for environment and is where we https://rik88.bet/
https://1go88.vip/ analyse the environmental footprint of a company. For example, initiatives in areas such as energy saving and the reduction of pollution. S stands for social and is where we examine working conditions of employees, clients and suppliers. The G stands for governance and is where we assess the structure of the company to see if its transparent and independent, how corporate officers are appointed and remunerated, and if there is respect for shareholders.
Green Investment
Green investment looks at the environmental side of ESG and is a large part of SRI. Green investments are made in companies that encourage, promote, or provide environmentally friendly products and practices. Anything to do with the natural environment or climate change comes under the “Green Investment” banner.
When we talk about “Green Investing” there is a term known as “shades of green” which demonstrates the spectrum of how green an investment opportunity is. Five main themes define what shade of green an investment opportunity may be. These include ESG integration, Portfolio screening, Corporate advocacy,