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Socially responsible investing definition
Socially responsible investing, or SRI, is when an investment is made into something that is deemed socially responsible.
Socially responsible investing definition
Socially responsible investing, or SRI, is when an investment is made into something that is deemed socially responsible.
While that is subjective, the broad understanding is that investing in the likes of alcohol, tobacco and gambling (some of the SIN stocks) is not socially responsible. However there are disputes about other areas, like whether investing in oil is socially acceptable.
Commonly-accepted investments deemed socially responsible include renewable/clean energy, environmental/social projects and new technologies. SRI can be seen as a big indicator of a company's culture, and can also provide an image boost.
These investments can be made in individual companies, mutual fund or exchange-traded fund (ETFs). One of the biggest arguments in favour of SRI is that you can make profit while investing with a conscience.
The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA, a SIPP or an IG Smart Portfolio can fall as well as rise, which could mean getting back less than you originally put in. Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. Spread betting and CFD trading are not permitted within the IG SIPP. Please ensure you fully understand the risks and take care to manage your exposure.
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