SRI strategies
There is a range of ways in which you can help charities to invest responsibly. The main approaches to Responsible Investment are known as
Positive screening
Negative screening
Engagement and voting
This section provides an explanation of what these terms mean and how they can be used. It will help you understand which strategy or strategies best fit with the overall financial and Responsible Investment objectives of charity clients.
The roots of Responsible Investment lie in negative screening, and this is still the most popular and well-known form of SRI. It can be a good first step for charities wishing to safeguard against damage to their reputation.
It is also possible to use positive screening, engagement and the voting of shares to encourage and influence positive change. It is also possible to collaborate with other investors to pursue social, environmental or ethical objectives.
These strategies can be used individually or in combination - depending upon the charity’s objectives and the sophistication of their Responsible Investment policy.
Integration is another Responsible Investment strategy. It refers to the inclusion of potentially material social, environmental, ethical or corporate governance risks and opportunities into normal investment processes.
Mission-related investment and programme –related Investment are not the same as socially responsible investment.
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