Practical analysis for investment professionals

Socially Responsible Investment (SRI)


In Practice Summary: Social Responsibility (SR) Screens and Fund Performance

Does environmental, social, and governance (ESG) investing add or subtract value from investment portfolios? According to the findings of a trio of researchers, summarized in the new In Practice series, the answer is neither: Investors can both match index performance while also “doing good” for the environment and society.

Top Five Articles from May: Behavioral Finance, Blockchain, and ESG

Jason Voss, CFA, and C. Thomas Howard recommend replacing modern portfolio theory (MPT) with behavioral finance and dismantling the finance industry's closet indexing factory; Larry Cao, CFA, helps to define blockchain; Mark Harrison, CFA, considers issues of performance measurement in factor investing; and Christopher K. Merker, PhD, CFA, looks at the rising tide of environmental, social, and governance (ESG) investing, in the top Enterprising Investor posts from May.

The Stampede into ESG

The recent stampede of asset managers into environmental, social, and governance (ESG) investing is reminiscent of another time and another industry, says Christopher K. Merker, PhD, CFA.

ESG in Emerging Markets and Beyond: Where Is the Alpha?

Taking environmental, social, and governance (ESG) factors into account and avoiding unsustainable investment choices is not a theoretical fad but a robust downside protection mechanism and an attractive outperformance opportunity deserving of attention.

Climate Bonds: More Than Hot Air

The debate over climate change continues, but governments, institutional investors, and other market actors are already changing how they allocate capital.

The Big Picture of Responsible Investing: An Interview with Rob Lake

To better see "the big picture" of responsible investing, which emphasizes environmental, social, and governance (ESG) issues, we spoke with Rob Lake, an independent advisor who helps asset owners invest responsibly.

Best of 2013: Understanding SRI and Islamic Finance

Though the market is still dominated by conventional financial instruments, recent years have seen increasing interest in SRI and Islamic finance. More than 10% of the total assets under management in the United States are now invested following SRI practices, and this year British Prime Minister David Cameron announced that the United Kingdom will become the first non-Muslim country to issue an Islamic bond.

Why Isn’t There More Collaboration between Islamic Finance and SRI?

Islamic finance and the forms of finance generally referred to as sustainable and responsible investing (SRI) are yet to actively collaborate with each other. One would think that to strengthen their position in a market dominated by conventional finance, Islamic finance and SRI would be sharing their successes and failures, coming together for joint ventures, and supporting each other on issues for which they have similar views. But such collaboration has not occurred. Building bridges between the two remains an opportunity that is waiting to be seized upon by the industry leaders from the two sides.

Top 20 Films about Finance: From Crisis to Con Men

If the film industry has anything to teach finance professionals, it's this: The financial services industry, particularly Wall Street, had a serious public relations problem long before the financial crisis of 2008.

Impact Investing: Turning a Profit and Changing the World

Impact investing, a rapidly growing sector of socially responsible investing (SRI), represents the nexus of philanthropy and traditional finance: It expands the definition of return on invested capital to include both financial and social returns.



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