Sustainable responsible investment or socially responsible investment (SRI) is a type of investment which involves the consideration of social and environmental factors, as well as traditional financial factors, in investment decision making.[1]

Animal protection is emerging as the next major social change movement of our century and should be considered an integral part of SRI.

History & Growth of SRI
SRI is largely the result of peoples desire to align their investment decisions with their personal values. The concept is thought to stem from Jewish, Christian and Islamic religious traditions of avoiding:

• trade with businesses that profit from products which harm or kill fellow human beings; and
• companies that facilitate ‘sins’ such as gambling, alcohol or tobacco.[2]
  

United Nations Principles for Responsible Investment
In 2005, a group of the world’s largest institutional investors joined a process to develop the United Nations Principles for Responsible Investment (PRI). The Principles are directly relevant to SRI but are also intended to apply across the whole investment industry. The Principles are voluntary, non-prescriptive and aspirational. They seek to provide a range of actions which investors can undertake in order to incorporate environmental, social and corporate governance issues into mainstream investment decision making practices.

Asset owners, investment managers and professional service partners can sign onto the Principles. In doing so they acknowledge that:

“As institutional investors, we have a duty to act in the best long-term interests of our beneficiaries. In this fiduciary role, we believe that environmental, social, and corporate governance issues can affect the performance of investment portfolios (to varying degrees across companies, sectors, regions, and asset classes and through time). We also recognise that applying these Principles may better align investors with broader objectives of society.”[3]

For further information about the PRI please visit: http://www.unpri.org/

SRI is growing
SRI is growing in Australia with managed SRI portfolios increasing by 56% during the 2006 financial year, in comparison with a growth of 15.5% in mainstream managed portfolios.[4]

This growth has, in part, been due to recent changes in superannuation legislation. In 2005, legislation provided for many Australians to be able to choose their own superannuation funds. This results in the need for superannuation funds to attract new members by providing a broader range of investment choices which will satisfy the particular needs of investors.[5] Consumers now have the opportunity to request products which meet their needs – including animal friendly investment products.

Currently in the United States one quarter of all socially screened funds, with nearly $10 billion in assets, take animal welfare into consideration as part of their screening processes.[6]

Please follow this link to find out about SRI and Animals. 

1. SIF Industry Research Program, 2005 Report on Socially Responsible Investing Trends in the United States (January 2006) Social Investment Forum, p 2 at 16 November 2006.
2. SIF Industry Research Program, 2003 Report on Socially Responsible Investing Trends in the United States (December 2003) Social Investment Forum, p 5 at 15 November 2006.
3. United Nations Principles for Responsible Investment at 15 November 2006.
4. Sustainable Responsible Investment in Australia 2006 – A Benchmarking Survey (September 2006) Ethical Investment Association, p 4 at 16 November 2006.
5. Sustainable Responsible Investment in Australia 2005 – A Benchmarking Survey (October 2005) Ethical Investment Association, p 15 at 16 November 2006.
6. SIF Industry Research Program, 2005 Report on Socially Responsible Investing Trends in the United States (January 2006) Social Investment Forum, p 8 at 16 November 2006.

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