Socially Responsible Investment (SRI) | Green Associates

Socially Responsible Investment

Socially Responsible Investing (SRI) is growing in popularity in Australia, with many investors looking to align their investments with their personal values and beliefs.  

In fact, the Responsible Investment Benchmark Report Australia 2022 showed that a huge $1.54 trillion is responsibly managed in the Australian market. This represents 43% of all professionally managed assets in the country, up from 40% in 2021. 

At Green Associates, we can help you understand SRI and determine how it can be used to achieve your financial goals, while respecting your personal values and beliefs.  

What is Socially Responsible Investing?

Socially responsible investing (SRI), also known as sustainable investing, is an investment approach that seeks to generate both financial returns and social or environmental benefits. 

SRI involves investing in companies that are deemed to be socially responsible, such as those that have a positive impact on the environment, promote human rights, or engage in ethical business practices. 

SRI is different to ethical investing, which is investing in companies that meet certain ethical or moral standards.  

It is also different to impact investing, which is investing in companies that are specifically focused on generating social or environmental impact. 

What are some SRI options to consider?

There are different SRI strategies to select from, depending on your personal values and financial goals.  

They include: 

  • Negative screening: avoiding investments in companies that engage in certain activities or industries such as tobacco, weapons or fossil fuels 
  • Positive screening: actively seeking out companies that have a positive impact on society and the environment 
  • Thematic investing: investing in companies that are working on a particular social or environmental issue, such as clean energy or gender equality 
  • Community investing: investing in organisations that are working to address social and environmental issues in a particular region or community. 

How can we help with SRI?

Here are some practical questions Green Associates can help answer: 

  • What’s better for me – SRI, ethical investing or impact investing? 
  • Should I build a portfolio which includes an allocation to SRI or one which only invests in SRI? 
  • Which SRI option should I use to pick the companies to invest in? 
  • How can I make sure these companies are not just “greenwashing”? 
  • What financial return can I expect and how does it compare to traditional investing? 
  • Can I still have a diversified portfolio while only investing in socially responsible companies?  
  • How can I make sure my super fund is investing my money in a socially and environmentally responsible way? 

SRI can seem complex, but by working with a Green Associate Financial Planner, we can make the process simpler and more transparent. It starts with clarifying your goals and preferences. 

What can we do for you?

A Green Associates Financial Planner helps you: 

  • Clarify your personal values and your individual preferences 
  • Select the right SRI option based on these goals and values 
  • Identify which companies are good investment options for your SRI portfolio 
  • Stay updated with your portfolio’s performance 
  • Stay informed about new SRI investment opportunities 
  • Review and rebalance your portfolio. 

A Green Associates Financial Planner can help you use SRI to achieve your financial goals without compromising your values and beliefs.  

Why is SRI important?

SRI is important for 2 main reasons.  

Firstly, SRI can be a tool for individuals to promote positive change in the world. By investing in socially responsible companies, investors can contribute to creating a more sustainable and equitable future. 

Secondly, SRI can also help manage investment risk by avoiding companies that engage in activities that may have negative social or environmental impacts. This can reduce the risk of reputational damage and regulatory penalties. 

Find out more

Book an appointment with a Green Associates Financial Planner today for specialist advice on SRI.  

Whether you’re interested in investing in companies that prioritise sustainability, social justice, or diversity and inclusion, we can help you find options that fit your needs.