Socially Responsible Investing

What is it? Today, socially responsible investing (SRI) represents the cutting edge of the investment industry – integrating social and environmental concerns while earning competitive returns. SRI has grown from $40 billion in 1984 to $2.34 trillion as of 2001. Of those dollars, $7.6 billion are community investment dollars.

While the SRI industry is experiencing growth in products and real dollars, the increase in sophistication and knowledge of SRI investors has resulted in heightened investor expectations. In addition to screening investments and participating in shareholder advocacy, investors are asking: "How can I maximize the impact of my dollars?” “Where can I make the biggest difference with my money?” The answer for many is community investing.

Community investing is financing that creates resources and opportunities for economically disadvantaged people in the U.S. and overseas who are underserved by traditional financial institutions. It puts communities with the greatest needs first. Community investing maximizes the social impact investors can have with their investments by making it possible for local organizations to provide financial services to low-income individuals, and to supply capital for small businesses and vital community services, such as child care and affordable housing.

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