What is SRI?

– Peter Robinson, CEO Mountain Equipment Co-op

Socially responsible investing, also called SRI, is not a new idea. By the mid 1800s some members of the British aristocracy had adopted “sin screens” to ensure that their investments weren’t tainted by cigarette or alcohol revenues. But another century would go by before the first mutual funds began to withhold investment in companies with poor records on the environment or those with questionable business practices.

In 1980, the Prime Minister of Norway at the time, Gro Harlem Brundtland, defined “sustainability” as “meeting the needs of the present without compromising the ability of future generations to meet their own needs” and it has been used ever since by the World Business Council for Sustainable Investment.

Of course, investing today in a socially responsible way involves far broader questions. But increasingly, companies are responding by including social and environmental issues in their corporate plans. As a result you’ll now find many of the world’s largest firms meet the requirements for inclusion in many SRI mutual funds.