By Ang Gao
“Your capital can do more than generate returns.”
This used to be a slogan persuading investors to be more socially impactful. But now it’s a trend.
Sustainable, responsible and impact investing, or SRI, is an investment discipline that “considers environmental, social and corporate governance criteria to generate long-term competitive financial returns and positive societal impact,” according to US SIF: The Forum for Sustainable and Responsible Investment, an association that advances SRI across all asset classes.
The total U.S.-domiciled assets under management using SRI strategies grew to $8.72 trillion at the start of 2016, an increase of 33 percent since 2014 and a 14-fold increase since 1995, taking up around 21.6 percent of total U.S. assets under management of $40.3 trillion, according to the latest data compiled by the association.