Sustainability indexes
Socially Responsible Investing (SRI) is an investment strategy that integrates social or environmental criteria into financial analysis.
SRI) aims to influence corporate attitude towards sustainable development and socially responsible behaviour, considering investor interests to identify companies with better long-term financial performance through the analysis of social and environmental factors .
In 2006, with approximately $2.29 trillion in assets in the US, SRI) is managed by 201 funds that incorporate social and environmental factors into their analysis.
SRI) is catching on with individual and institutional investors who seek to align their investment portfolio with their personal values by avoiding companies that do not meet certain standards.
In Europe 1,03 trillion € with some SRI) criteria through 375 ecological, social and ethical funds. In Spain, approximately 25 billion € were invested with some SRI criteria.
Sources: European SRI) Study 2006 Eurosif & 2005 Report on Socially Responsible Investing Trends in the US Social Investment Forum
Assessment to potential socially responsible companies is delivered by recognized rating agencies, such as SAM or EIRIS, which consider extra-financial analysis, evaluating economic, social and environmental criteria. Sustainability assessments are carried out on a periodic basis by means of complex questionnaires and public information check. Rating agencies criteria do conform the most notified sustainability indexes, such as Dow Jones Sustainability Indexes, FTSE4Good, Ethibel Sustainability Indexes, etc.
Sustainability Indexes do provide socially responsible investors with critical information to align their investment portfolios. Integration into these prestigious indexes recognizes companies whose corporate government, transparency, policies and management systems may be outstanding.