SRI is a generic term that combines the financial objectives of investors with environmental, social and governance (ESG) issues. This is based on the concept that companies which place a great deal of importance on ESG issues will achieve superior financial returns.
The problem with implementing SRI is that we all have a different view of how the world can be improved. Many investors do not want to support certain products, including armaments, tobacco, alcohol and gambling facilities, while others are concerned about a number of broader issues including the impact of businesses on the environment and the widening gap between senior executive remuneration and wage earners.
Click here to read the two basic ways that investors can achieve their SRI objectives.