Busting the myths

SRI

There are almost as many myths surrounding sustainable and responsible investment issues as there are terms for the sector. Sustainable… responsible… ethical… all lack formal definition. But more important than names is the need to look at the options available and dispel some of the myths that can prevent some investors from considering sustainable and ethical funds

A key misconception among investors is that SRI funds underperform relative to their mainstream counterparts. There is evidence to show that this is generally untrue. The basic tenet of SRI investing is to maximise both the financial return and the social good. These do not have to be mutually exclusive; in fact research suggests both can co-exist to the benefit of investors and broader society. In fact, companies that align themselves to their customers’ environmental, social and governance principles by adopting responsible and progressive policies are better placed to reduce costs and...