“The truth is finally starting to emerge about socially responsible investing” – CNBC June 16, 2017

On June 16, 2017 CNBC reported that “the truth is finally staring to emerge about socially responsible investing,” citing both recent performance data and academic research, including a 2013 meta-analysis of 25 primary studies on SRI performance.

The article profiles a range of SRI options, including those with emerging markets coverage, and summarizes SRI performance in the following bullet points:

  • “Socially responsible investing funds perform as well as traditional stock funds.
  • As algorithms to identify ESG (environmental, social and governance) factors improve, there’s a better chance for SRI outperformance.
  • SRI funds face two major hurdles: Any actively managed fund will struggle to beat an index fund, and any fund with an annual fee higher than the cheapest traditional index fund or ETF version starts at a disadvantage.
  • Socially responsible funds that focus on excluding stocks, rather than identifying stocks that score highly on ESG metrics, have a harder time generating good long-term performance.”

According to the article, “(m)oney is pouring into sustainable investments, which has surged by more than $2 trillion in the last two years. Demand is growing as clients want to increasingly invest responsibly.”

Unfortunately, misconceptions about SRI being synonymous with exclusion continue, demonstrated by the URL title of the article, which is “how-to-win-in-socially-responsible-investing-dont-exclude-bad-stocks.html.”

You may read the article on the CNBC internet site.

“IKEA is releasing a version of its iconic shopping bag made from potato chip wrappers” – Quartz – June 13, 2017

On June 13, 2017 Quartz reported that IKEA will begin selling a new version of its Frakta shopping bag made from discarded plastic materials.

According to the article, (t)his latest incarnation of the iconic IKEA workhorse bag is the work of Mariam Hazem and Hend Riad, founders of Reform Studio, a design practice that produces furniture and woven textiles from discarded plastic materials.

‘We believe that design can solve stubborn problems and thus we started from a major issue in Egypt: waste, explained Hazem of the Cairo-based studio’s creative philosophy.”

Reform Studio displayed at the 2016 Design Indaba conference in South Africa.  IKEA’s head of design saw their work and was inspired to develop a first all-African collection, Överallt.

“The silver Frakta bags, along with a collection of home goods by designers from South Africa, Kenya, Senegal, Egypt, Angola, Ivory Coast and Rwanda, will be available in IKEA stores by 2019.”

You may read the article on the Quartz internet site.