FEM logo
Fund EcoMarket

the sustainable, responsible and ethical investment information hub

About SRI

What is ‘SRI’?

FEM-tag-cloud‘Sustainable and Responsible Investment*’ is a broad term used to describe investments which pay close attention to environmental, social, ethical and/or company governance related issues. (*Some also refer to this as ‘Socially Responsible Investment’).

This market is sometimes seen as complex, but in essence these are simply regular investment funds that take additional factors into account when deciding where to invest.

These funds have been available to individual investors since 1984 and different options have emerged to meet the needs of different investors.

The UK’s earliest funds were launched primarily to meet the needs of Quaker and Methodist investors.  Other funds soon followed with broadly similar strategies – focusing on personal, ethical values. A second wave of funds emerged a few years later – with a greater focus on environmental and sustainability related issue (some brought ‘ethical values’ into the mix more than others).

At around the time of the millennium a third strand emerged – which involved using ‘responsible share ownership’ as a means of actively encouraging higher corporate standards – in order to help improve longer term shareholder returns.

With growing activity in the institutional and the pensions markets in recent years this area of ‘responsible ownership’ has flourished alongside a newer trend known as ‘ESG’.  This strategy is largely about bringing ‘environmental, social and governance’ issues into investment decision making – to help reduce risk.

Today there are many different fund managers combining these different strategies in many different ways – so individual investors enjoy greater choice than ever before.

However, terminology and labels are used differently by different people.  Our view is that it is best not to get too hung up on jargon – but it is  important to check what people mean when they use a particular label or acronym.  For example, the term ‘SRI’ can also be used to mean ‘socially responsible investment’, a term we have borrowed from the USA.  (We do not agree with this view as it overlooks the importance of ‘environmental’ issues – which is integral to many of these funds strategies.)

Our system of ‘SRI Styles’ helps to highlight the different options that are available.  However users of this system should bear in mind that  funds are often designed to appeal to investors with a wide range of interests.  As such, there is some crossover between the styles – as well as differences within the style groupings.

(The ‘SRI Policy’ and ‘Other Features’ filters on Fund EcoMarket help users to refine their searches further for this reason!)

The ‘SRI Styles Explained’ area explains further.

This service is provided for information purposes only please speak with a qualified financial adviser for further information.

We do not deal directly with investors and are not authorised to offer advice.

Sign Up to our Newsletter

If you are a Financial Services Industry professional you can sign up for our newsletter

Click Here

Latest News

SRI Services & Fund EcoMarket February 2021 newsletter
February 23, 2021

  Here is the link to our most recent newsletter – published yesterday. To subscribe to our newsletter please sign up here. This includes information on the new filter options (under the header of the filter field they sit in) that we have added to Fund EcoMarket to reflect recent market developments. An explanation of […]

Climate of Change – Investment Life and Pensions Moneyfacts article
February 15, 2021

This month’s Investment Life and Pensions Moneyfacts magazine has kindly published an article I have writen for them regarding the FCA’s proposed Sustainable Investment Principles which were first aired at our conference last year. You can download the article here: ILP Moneyfacts February 2021 Climate of Change As discussed in the article the principles remain […]

Intelligent Partnership estate planning guide – SRI thoughtpiece
February 10, 2021

A big thank you to Intelligent Partnership for sending me a lovely, smart version of the brief ‘Thought Leadership’ piece I wrote for them last month. The brief article highlights the relevance of financial services intermediaries considering sustainable investment when discussing estate planning with clients. You can download my article here: SRI thought leadership article […]