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By Jan Litterst
As
a new member of the Sierra Club Northeast Ohio, by way of introduction,
I’d like to say that Socially Responsible Investing (SRI)
is my Purpose, Passion, and what I Persevere to educate others
on. Why SRI? Because it builds healthy communities, promotes economic
equity, and fosters a clean environment.
Pretty powerful reasons if you ask me.
SRI simply means integrating your personal values and societal
concerns into your decisions about where you invest your money.
It considers not only your financial needs – education for
your children, retirement, or leaving a legacy to a group such
as the Sierra Club – but it also considers an investment’s
impact on society and the Earth. Pretty basic stuff.
SRI places restrictions or limitations on investment choices through “screening”.
In addition to being screened for environmental issues, investments
can be screened for other factors, including social and religious
criteria. It also encourages, and sometimes demands, shareholder
activism!
SRI is simply an investment strategy that investors can choose
to pursue in order to match their portfolios with their values.
SRI investors believe that the companies they choose have better
quality management and lower risk. SRI integrates analysis of social,
environmental, and governance factors into traditional financial
analysis.
In other words, SRI is:
- Social investing
- Ethical investing
- Value-based investing
- Sustainable Investing
- Green investing
This is only an introduction. In future newsletters,
the criteria used
in the screening of SRI will be discussed, including the following
areas of screening:
- Animal Welfare
- Climate Change
- Corporate Governance
- Diversity
- Environmental Issues
What is SRI? It is simply putting your money where your values
are.
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