Socially Responsible Investing (SRI)

The UN Principles for Responsible Investment (PRI) is a United Nations-supported network of investors who work to identify, promote, and ensure the adoption of environmental and sustainability practices within financial institutions. Originally founded in 2006, the PRI works with over 200 financial institutions and has 7,000 corporate signatories across 135 countries.

Impact investing is an investing strategy designed to put money toward positive societal change while still generating returns. Socially responsible investing (SRI) and environmental, social, and governance (ESG) investing are two of the most well-known forms of impact investing.

The term “corporate accountability” is a measurement of how a publicly traded company has operated in areas outside of its financial performance, primarily regarding sustainability and social responsibility. Businesses often voluntarily publish corporate accountability reports for the benefit of both their shareholders and the general public.

Corporate social responsibility (CSR) is a self-regulating business model that companies can use to ensure they are remaining socially accountable to themselves, shareholders, and the public when conducting business. CSR has the benefit of both improving society and the environment as well as bolstering a company’s public image.

A socially responsible investment (SRI) is a type of investment that is intended to align with the investor’s ethical principles. SRIs can take the form of purchasing shares of companies that support environmental sustainability or social justice as well as investments into a mutual fund or ETF that eschews any companies with ties to the production and/or sale of addictive substances.

A social audit is a formal, internal examination of a company's operations and policies in terms of how its business impacts society. These kinds of audits allow companies to analyze whether or not they are striking a balance between social responsibility and profitability.

Carbon trade refers to the buying and selling of government-authorized credits that permits an organization to emit a limited amount of carbon dioxide (as well as other kinds of greenhouse gas). The idea behind carbon trading is to motivate nations to reduce their carbon emissions so that they will have additional permits that they can then sell.