The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

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.

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