On October 21, 2016 an article published in US News & World Report asks whether socially responsible investing actually works. The inconclusive answer found by the author may be a result of incomplete analysis. First, the author focuses almost exclusively on exclusion and fails to note that there are several other common SRI strategies, such as sustainability themed, norms based, best in class, engagement and voting, and ESG integration. Second, the author claims that the “nebulous” definition of SRI is “perhaps the most glaring issue facting SRI today” instead of recognizing the appeal of the various above-mentioned SRI strategies to a range of invesors. Third, the author fails to note the wealth of research studies demonstrating a positive correlation between ESG analysis and financial performance.
US readers need a more professional analysis of whether SRI actually works.
You may read the article on the US News & World Report internet site.