NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, June 20, 2013

Socially responsible investing (SRI) will become mainstream within the next couple of years according to a new study on the competitive advantage of green business practices.

A first-of-its-kind survey of 1,300 green businesses, to be showcased later this week at the annual LOHAS (Lifestyles of Health and Sustainability) conference in Boulder, CO reveals that, over the last decade, the assets of SRI investment portfolios grew an impressive 32 percent from $2.3 trillion to $3.07 trillion, while assets in investments overall grew just 27 percent.

“The breadth of investors participating in SRI has greatly expanded — from early-on leaders of SRI to conventional investment firms and institutional investors that recognize the importance of taking ESG (environmental, social, governance) criteria into investment decision-making. For example, the UN Principles of Responsible Investing continues to grow, with more than a thousand signatories. “SRI” is maturing and expanding in terms of strategies, research, impact and assets. “Impact investing” is a term with increasing use, as investors seek to maximize the social/enviro/broad economic benefits of their investment to society — whether nationally or internationally – Fran Teplitz, Director of Social Investing and Policy, Green America.