What is socially responsible investing (SRI)? // The Motley Fool Australia
An introduction
Socially responsible investing (or ‘SRI’ for short) is an ethical approach to investing. Socially responsible investors choose to invest only in companies advancing specific causes, like social justice, the green energy transition, or other socially beneficial initiatives.
As we will explain later, SRI is closely related to environmental, social, and corporate governance (ESG) investing – some people even use the terms interchangeably. However, you should be aware of some subtle differences between the two.
ESG investors use the ESG framework to screen out companies with unsustainable business practices, whereas socially responsible investors seek out only those companies that are actively…
