Introduction to Socially Responsible Investing

By Melissa Pistilli—Exclusive to Tantalum Investing News

Socially Responsible Investing (SRI), or ethical investing, is becoming much more popular as investors look for ways to make a difference while also making a profit. Although ethical investing once mainly involved staying away from companies whose values didn’t fit your own (e.g. tobacco, alcohol, or weapons manufacturing), SRI now encompasses a much broader range of issues and terms such as “Green Investing,” “Sustainable Investing,” and “Impact Investing” have begun gaining importance in the investment world.

Proponents of SRI say it grants investors an avenue in which to grow their money over the long-term by taking advantage of the many investment opportunities associated with the drive toward sustainability, climate change, green solutions and social responsibility in general.

While some may look to the governments of the world to affect change, the investment community is increasingly beginning to realize that it can influence change from within the corporate structure, and at a much quicker pace than slow-going and often under-funded government policy.

In response to increasing demand, the number of SRI investment funds is growing because it offers a way to fund solutions to problems and make money at the same time.

“There are so many more investment funds now, partly as a result of public interest,” says John Ditchfield, an independent financial adviser who specializes in ethical investment. “This has been compounded by the banking crisis, which has forced people to look at what’s in their portfolio. Just the other day we had a client who wanted to change his portfolio to take in only investments that are useful to society.”

While the mining industry is unfortunately viewed by some as not the most environmentally-friendly or socially responsible, closer examination will show that the industry is changing and there are many companies taking the initiative to make ethical choices in their operations from grassroots exploration to reclamation, including where they mine, how they mine, and how they interact with the local population and governments.

It is possible to be a SR investor and a natural resources investor at the same time. All it requires is a little extra due diligence.

Resources for Socially Responsible Investing

• Global Impact Investing Network
• Responsible Investment Association
• The Social Investment Forum  (SIF)
• Experts in Responsible Investment Solutions (EIRIS)
• Social Investment Organization
• Building the Canadian Advantage: A Corporate Social Responsibility (CSR) Strategy for the Canadian International Extractive Sector
• Business Ethics—The Magazine of Corporate Responsibility
• GreenMoney Journal
• Strandberg Consulting
• Center for Social Innovation
• Books on SRI

Asset Management Firms Specializing in Socially Responsible Investing

• Access Capital Strategies
• Boston Common Asset Management
• Calvert Investments
• Clean Yield Group
• Natural Investments
• Progressive Asset Management
• The Social Equity Group
• Trillium Asset Management
• WHEB Asset Management