Investment Vision 2011 Series: Socially Responsible Investing
There are green and ethical funds with excellent recent and long term performance, which demonstrates the potential for investment growth in the sector.
-Penny Shepherd, Chief executive of UK Social Investment Finance
After some prospective years for Socially Responsible Investing (SRI), it has advanced significantly to become a mainstream in finance. Its methods have also developed, along with the whole movement toward a more socially discreet practice of investing money. SRI have grown by 13% since 2007, compared to less than 1% by mainstream assets (2010 Trends Report by the Social Investment Forum (SIF)). It is no longer seen as an area just for the ethical minded, and in the U.S. alone SRI topped $3 trillion, nearly one out of every eight dollars under professional management (SIF, 2010).
The 2010 SIF report found that institutional investors continue to dominate the sustainable investment landscape, with $2.3 trillion in assets under management. The overall SRI landscape, which includes banking, credit unions as well as investments, has almost tripled from £5.1 billion in 1999 to £14.4 billion in 2010 (The Co-operative Financial Services, 2010). A staggering 380% growth was reported in 2010 by professionally managed assets that followed sustainable investment strategies. SRI assets have increased more than 34% while the broader universe of professionally managed assets have increased only 3% (2010 Trends Report by SIF).
In this report
independently written by our Market Intelligence & Research Unit (MIRU) to find out more about this flourishing region.