With increased media coverage and growing awareness of concerns such as climate change, many people are giving serious thought to how the decisions they make impact society and the environment. This is leading to increased understanding of how important it is to think and act now to protect the long term future needs of society. This consideration includes decisions on how they manage their money.

What is Sustainable and Responsible Investment (SRI)?

It means investing money in a way that considers the impact which different companies have on society and the environment, as well as looking at how responsible they are in managing the effects of what they do.

SRI is an approach to investing which aims to integrate financial performance with social, environmental and corporate responsibility.

How are Sustainable and Responsible investment opportunities identified?

There are three approaches that can be used to identify which companies a fund manager believes to be sustainable and responsible:

1. Screening out those companies that are not considered to be responsible or sustainable in what they do or how they are managed, e.g. tobacco.

2. Identifying and selecting products and companies that have a positive impact on society or the environment e.g. renewable energy.

3. Working with companies management teams to influence and challenge their sustainable and environmental policies, actively pointing out areas for improvement.

SRI and you

There are many shades of green - but the good news is that with so many more sustainable and responsible funds now available, you have more opportunity to choose investments which reflect your beliefs. And your choices really can make a difference.

Anyone who has ever recycled their waste will appreciate the principle that collectively, many small actions can make a big difference. Your investment decisions, pooled with those of other personal investors, can play a major role in shaping the future approaches of major corporate organisations.