Review of Socially Responsible Investing Tools

Introduction

Socially responsible investing (SRI) has gained popularity in recent years as investors seek to align their financial goals with their values. There are a variety of tools available to help investors make informed decisions when it comes to SRI. In this article, we will review some of the top SRI tools on the market.

1. ESG Ratings

Environmental, Social, and Governance (ESG) ratings provide a snapshot of a company’s sustainability and ethical practices. There are several companies that provide ESG ratings, such as MSCI, Sustainalytics, and Morningstar. Investors can use these ratings to evaluate a company’s performance in key areas such as climate change, labor practices, and board diversity.

Steps to use ESG Ratings:

• Research different ESG rating providers and their methodologies
• Look up the ESG ratings of companies you are interested in investing in
• Consider how ESG factors align with your values and investment goals

2. Impact Investing Platforms

Impact investing platforms connect investors with opportunities to support social and environmental causes while earning a financial return. Platforms like Swell Investing, OpenInvest, and Ethic offer a range of investment options that focus on issues such as clean energy, gender equality, and affordable housing.

Steps to use Impact Investing Platforms:

• Sign up for an account on the platform of your choice
• Explore the different investment options available and their impact goals
• Invest in companies and projects that align with your values

3. Proxy Voting Tools

Proxy voting tools allow investors to have a say in corporate governance by voting on shareholder resolutions. Platforms like ProxyDemocracy and ShareAction provide information on upcoming shareholder votes and recommendations on how investors can vote to promote sustainability and social responsibility.

Steps to use Proxy Voting Tools:

• Sign up for an account on a proxy voting platform
• Review the upcoming shareholder resolutions and recommendations
• Cast your vote in alignment with your values and investment goals

Conclusion

Socially responsible investing tools can help investors make informed decisions that align with their values and financial goals. Whether using ESG ratings, impact investing platforms, or proxy voting tools, there are a variety of resources available to support SRI strategies. By leveraging these tools, investors can contribute to positive social and environmental change while building a diversified and sustainable investment portfolio.