By MoneySense Editors on November 11, 2021

What is socially responsible investing?

By MoneySense Editors on November 11, 2021

What is socially responsible investing? Why do you need to know this definition? The MoneySense Glossary is your resource for learning and understanding financial terms.

Socially responsible investing (SRI) is a strategy that looks beyond the financial returns of portfolios to the environmental, social, governmental and ethical impact of investing. Financial returns are important, but SRI investors often make their investment decisions based on negative screening, where they eliminate investments that don’t resonate with their values or positive investing, where there is a deliberate choice to invest in companies that align with their values.

Example: “I’m focused on SRI investments that support the environment.”

Read more on socially responsible investing:

The cost of socially responsible investing
Are there enough options available for Canadians who want to invest according to their values—and do you have to compromise on performance or fees to be a socially responsible investor?
Halal investing in Canada
Investing can be challenging for Muslims, as solutions that are both Shariah-compliant and effective at helping achieve long-term financial goals are limited.

Two simple and cheap portfolios for sustainability-minded investors
With MERs as low as 0.15%, these investments are for those who want to bring positive change to the world while also earning a return.