What's quicker, circumnavigating the world or completing the questionnaire for the Carbon Disclosure Project? A jumbo jet would be back in time for supper while you were still puzzling over question 4.1, the anticipated physical impacts of climate change.
Welcome to the question-hungry world of what used to be called Socially Responsible Investing and is now referred to as Responsible Investing (RI).
Entering the mainstream
It would be easy to dismiss this often irritating niche activity of the financial community were it not so important. RI has become a force for reform in business. Originally a saintly pursuit of church groups and charities to avoid sinful stocks (alcohol, gambling, tobacco), RI has broadened its remit and now influences investments worth some $5 trillion, according to a joint study between Booz & Company, and Robeco.
In 2009, the number of RI funds grew 27% and assets under management rose 9%, according to the Financial Times.
RI's maturity has meant a rising tide of time-consuming questionnaires and demands to report detailed environmental, social and governance data. Prioritizing can be tough.
In our latest In Context bulletin, we explore these issues and more in the world of responsible investing. We want the conversation to continue here, so comment freely.
Authenticity and Audience
3 weeks ago