Review:
Socially Responsible Investing
overall review score: 4.5
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score is between 0 and 5
Socially responsible investing (SRI) is an investment strategy that seeks to generate financial returns while also supporting socially responsible goals such as environmental sustainability, social justice, and ethical business practices.
Key Features
- Integration of Environmental, Social, and Governance (ESG) criteria in investment decisions
- Engagement with companies to promote positive change
- Screening out investments in industries or companies deemed harmful
Pros
- Aligns investors' values with their financial goals
- Encourages companies to adopt sustainable and ethical practices
- May lead to long-term outperformance of investments
Cons
- May limit diversification options for investors
- Subject to potential greenwashing or lack of transparency in ESG reporting
- Can be challenging to measure the impact of socially responsible investments