Thursday, 14 March 2013

Making Responsible Investments through Emerald Knight Consultants

Socially Responsible Investing Through Emerald Knight Consultants

Socially responsible investing (SRI) is an approach that aims to combine or balance an investor’s need for profit with the need to adhere to his principles and values. This can be done by taking into consideration the environmental, social, and governance (ESG) factors in the process of decision-making. In a sense, those who practice this approach intend to make an honest profit, and positively change the world while they’re at it. Here is a closer look at the factors considered in SRI.

Environmental Factors

Financial advisors and Emerald Knight consultants look at the long-term effects of the enterprise’s activities on the environment. Companies that adopt clean and green technologies are good candidates for SRI. They also look out for companies that practice good environmental management strategies and avoid inflicting damage on the environment.

Social Factors

While environmental factors are typically included in positive screens, negative screens call for vigilance in spotting social factors that disincline the financial advisors from choosing such companies to invest in. Socially responsible investing avoids industries that manufacture or distribute products that are unsafe, harmful, or elicit a negative impact on society. Tobacco, alcohol, pornography, and arms production are some of the things that fall under this category.

Governance Factors

Shareholders that practice SRI take on a more active role in pushing for changes in companies in the enhancement of corporate social responsibility. Emerald Knight consultants screen companies to make sure that the portfolios presented are limited to companies that do not exploit children for labor or take advantage of workers in developing countries. This is because SRI investors encourage corporations to improve their practices on governance issues.

Choosing an Ethical Investment

The sustainable investment market in the UK amounted to £1.03 trillion in 2012 alone, which is an impressive 18 percent increase over the previous year. This is proof that responsible investment is an approach that can provide returns the same way mainstream investments do. The key is finding the balance between profit and principle. You simply have to know what your money is funding. Analyzing the factors cited earlier can be difficult, especially for first-time investors. Deal with consultants who know how to evaluate how socially responsible a company is. By engaging a company like Emerald Knight, you can be sure that your money goes into building a better world.

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