Socially responsible investing

SRI (Socially Responsible Investing) is the process in which investors build investment portfolios while taking into consideration of the negative and positive social and environmental impacts of the underlying investments. T used to evaluate a company, ESG (environmental, social, and governance). Three different areas of socially responsible or sustainable investing are used to evaluate a company, ESG (environmental, social, and governance).

But what are socially responsible investment companies? Can backing them bring substantial returns? And how do children’s rights play a role? At Global Child Forum, we uncover how responsible investing goes hand in hand with protecting the next generation. Our benchmark data helps businesses assess their social impact and offers investors valuable insights to inform their child-inclusive investment decision-making.

What is environmentally responsible investing?

As the name suggests, this investment focuses on companies that positively contribute to the environment. Or at the very least, do no harm. This may include businesses that focus on:

• Renewable or clean energy; wind, solar and hydro technology
• Green transportation; reducing the consumption of fossil fuels
• Pollution control; minimizing waste and emissions

Environmentally conscious investing is expected to maintain its upward trajectory as the climate crisis becomes more and more apparent with every passing day.

What is socially responsible investing (SRI)?

SRI investing incorporates both environmental and social issues by twinning financial returns with a positive contribution to the world. This may involve forgoing investments in harmful industries, such as tobacco, oil, firearms, etc. But investors can also take a more proactive approach by seeking out companies with a proven commitment to bettering society. Global Child Forum provides the tools to distinguish businesses intent on tackling social injustice, protecting children’s rights, and developing communities.

Socially responsible investment has already proven its worth, with assets expected to soar further in the coming years, estimated to hit $50 trillion by 2025. Let´s examine why socially conscious investing is becoming increasingly appealing.

Why is responsible investing on the rise?

1. It reduces risks; Integrating ESG data into risk analyses can help avoid significant losses in numerous areas. This can range from something as obvious as an oil spill to reputation damage from an exposed human rights violation.

2. It’s what consumers want: Consumer trends reflect the demand for responsible business practices. Therefore, investors seek more transparency in every stage of a company’s operations.

3. New regulations are a driving force: Policy interventions have multiplied rapidly due to growing conscious investment regulations, such as the EU’s Sustainable Finance Disclosure Regulation (SFDR).

How are children’s rights involved in socially responsible funds?

Child-inclusive investing is an investment toward a sustainable future. Children are consumers, sometimes workers, the children of employees and members of global and local communities. Responsible investment that focuses on children, strengthens communities and fosters a better world, returning economic and societal rewards.

The lack of quality, consistent data

• The lack of standardizations in ESG data, scores, and ratings.
• Quality and consistency of corporate reporting.
• Availability of ESG data.
• Suspicions about data standards impact when companies have been accused of “greenwashing” pretending to be eco-friendly.