Socially Responsible Investing

SRI  =  Socially Responsible Investing

What is it?

A way to incorporate environmental, social and corporate governance issues into financial decisions.

SRI is not a new idea in the 1800s British aristocracy had adopted some practices to make sure that their investments weren't tainted by cigarette or alcohol revenues.  However it was not until 1987 that then Prime Minister of Norway, Gro Harlem Brundtland brought SRI into focus when she defined "sustainability "as "meeting the needs of the present without compromising the ability of future generations to meet their own needs"

The easiest way to participate is to invest in a mutual fund with a SRI strategy.

 www.socialinvestment.ca/mutualfunds.htm has a list of such funds.

To be included in a SRI fund a company not only has to have strong financials it should also have high standards in a number of areas including

• Promote sound environment practices
• Good employment conditions
• Have outstanding health and safety standards
• Offer community and social development programs
• Demonstrate open and effective corporate governance
• Respect for the rights of indigenous people

To view companies in Canada that meet the criteria visit http://www.jantzisocialindex.com/  and have a look under JSI companies. To check out companies south of our border go to http://www.domini.com/ under portfolios.

SRI can make a difference it allows individuals to align their investments with their values. It allows foundations, religious orders and non-governmental organizations to support their mission and it can influence corporate behaviour.

Shelly Vold CFP REBC

You can contact me with any comments or questions at vold.financial.group@londonlife.com  please use connectmoms in the subject line