Wednesday 28 July 2010

Demand for Responsible Investment is increasing

The Global Financial Crisis has made more people aware of the importance of considering good corporate ethics, governance and environmental issues when examining the future worth of any investment.
Once upon a time responsible investment (RI) was considered a niche market. Today responsible investors come from all walks of life and the issues that motivate them are universal.
  • They may have an interest in social issues, be a member of community, environmental, political or human rights groups.
  • They could have a science background and be passionate about new energy technologies as a way of solving the problem of climate change.
  • They may belong to a faith based or other spiritual organisation, or they might want to be close to nature and might just want to ensure its' preservation.
RI appeals to people from all age groups and all social backgrounds.
The most common reasons why people decide to become responsible investors are:

  • To generate competitive returns whilst making a difference to the environment or society.
  • To ensure your money is directed towards companies making a positive difference to the environment and the impact of climate change whilst avoiding those that cause harm.
  • As a way to influence corporate behaviour and push for greater accountability on issues like employment and trade conditions, environmental sustainability and good corporate governance.
  • To take your social or consumer activism to the next level.
As far as the GFC is concerned, adopting an RI strategy is an excellent way to facilitate improvements in corporate responsibility.

In summary then, the way you invest inside and outside of super can help you make competitive returns, as well as having a positive impact on the environment, socisal issues, and corporate behaviour.

That only leaves one question; What is YOUR money up to?

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