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FINVIA

Glossary

Glossary

SRI

SRI (Socially Responsible Investing) refers to an investment strategy in which ethical and social criteria are taken into account when selecting investments. The aim of SRI is to generate returns while promoting positive social or environmental impacts. Preference is given to companies that are active in areas such as renewable energy, social justice, environmentally friendly technologies or human rights. For example, SRI investors can invest in companies that take social responsibility, such as promoting environmentally friendly practices, providing fair working conditions or engaging in ethical business practices.


The difference between SRI, sustainable investing and impact investing lies in the intensity and objectives of the respective investment strategies:
Sustainable investing refers to a broader range of investment strategies that take into account environmental, social and governance(ESG) factors. It focuses on selecting companies that implement sustainable practices and consider environmental, social and governance impacts. The aim of sustainable investing is to achieve both financial returns and long-term sustainability goals.


Impact investing aims to make targeted investments in companies, organizations or projects that aim to generate a measurable, positive social or environmental impact. Impact investors aim to achieve a measurable impact and invest in companies or funds that pursue specific social or environmental goals. The primary focus is on achieving social or environmental impact without sacrificing expected returns.


Overall, it can be said that SRI is a broader strategy that takes social and ethical criteria into account when selecting investments, while sustainable investing and impact investing are more specific approaches that take sustainability goals and social impact into account in addition to returns.

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