Recently, in the world of investments the term Socially Responsible Investment (SRI) is one that has been been increasingly used to describe a type of alternative investment that not only generates a profit, but also makes a positive impact upon the world. Investments in such things as sustainable forestry, alternative fuel and social housing are all common examples of SRI opportunities available today.
Now that you know what an SRI is, you may be wondering whether they are a good opportunity for investment. The answer, as is often the case with this sort of thing, is entirely dependent on the specific project that has been invested in.
As with all things, not every SRI will be financially rewarding and it is important to do your research before investing, no one likes to make a bad investment, and it is strongly advised that you get at the very least some professional guidance before committing to any investment, whether it be an SRI or something more traditional.
With the average person becoming more and more concerned by environmental issues SRI investments are currently becoming much more prevalent, in fact, in the US, more than 10 per cent of investments currently under professional management can be considered an SRI.
Of course the added attraction of reliable returns and predictable growth in many SRI investments is also largely responsible for the 22 per cent increase in SRI over the last two years. The value of total global assets of SRI, is currently a whopping £2.2 trillion, suggesting that not only are investors considering SRI as a viable option, many are actively becoming involved with socially responsible projects.
With this amount of money being invested, it is clear to see that a lot of people believe that SRI is a sound way of making a good profit, whilst also managing to have a positive impact upon the planet.
Reginald Green, of Emerald Knight, a leading green investment consultancy, says that SRI is one of the best ways to make a fast, reliable return on your money. “Many people see SRI as a side project that probably won’t make much money, but helps them feel like they’re doing something good” he explains. “This is not entirely correct, for example, due to the global increase in demand for hardwood, prices are at an all time high, and sustainable forestry investments are a fantastic way of helping to reduce deforestation whilst also harvesting healthy profits at a steady and predictable rate of return.”
He goes on to inform us that “bamboo is also a common SRI and it is arguably one of the most secure investments available.” In fact, Green also says that in his opinion. bamboo plantations are perhaps one of the most exciting investments around.
In conclusion, yes SRI’s can be a financially enticing way of helping to change the planet for the better, however, you need to be aware of what you are investing in as not all socially responsible investments are as monetarily rewarding as the ones mentioned in this article.
Nigel Walters is an experienced investment blogger, his main areas are property investment and HMO investments, he writes to influence and guide his readers.