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Socially Responsible Investing

In the realm of Socially Responsible Investing (SRI), investors prioritize ethical and socially conscious values, considering environmental, social, and governance (ESG) criteria in their decision-making. Here are key insights related to personal finance, investing, and retirement within the context of SRI:

ESG Criteria:

  • Investors assess companies based on ESG factors, encompassing their environmental impact, social practices, and governance policies.

Investment Strategies:

  • SRI offers diverse strategies, such as negative screening (excluding specific industries), positive screening (actively selecting sustainable investments), and impact investing (supporting companies with a positive societal impact).

Financial Performance:

  • Historical studies indicate that socially responsible investments can compete favorably with traditional investments, but it's essential to research specific funds or companies due to potential performance variations.

Risk and Return:

  • SRI involves navigating trade-offs between financial returns and ethical alignment, emphasizing the importance of understanding and balancing risk and return.


  • Diversifying SRI portfolios across industries and asset classes is key for risk management and long-term return enhancement.

Retirement Accounts and SRI:

  • Many retirement plans offer SRI options, enabling individuals to align their retirement savings with ethical values. Consult your employer or retirement account provider for information on available SRI options.

Robo-Advisors and SRI:

  • Some robo-advisors specialize in SRI, providing automated platforms that consider ESG criteria in investment decision-making.

Regulations and Standards:

  • Staying informed about evolving regulations and industry standards related to SRI is crucial for making well-informed investment decisions.

Impact Measurement:

  • Investors may choose to assess the societal and environmental impact of their investments, extending beyond financial returns.

As you incorporate Socially Responsible Investing into your personal finance and retirement strategy, ensure thorough research, alignment with financial goals, and consider consulting with financial advisors for comprehensive guidance.