Investing is not just about financial gain, but also about the impact it has on the world we live in. In recent years, there has been a growing interest in socially responsible investment (SRI) as investors seek to align their investments with their personal values. What constitutes socially responsible investing?

Firstly, let's define what we mean by SRI. It is an investment strategy that seeks to generate financial returns while also making a positive impact on society and the environment. SRI can take various forms, from avoiding investments in companies that engage in harmful practices to actively seeking out investments in companies that are making a positive impact.

The survey reveals that many investors are keen to invest in a socially responsible manner, with the younger generation being particularly interested. However, there is confusion around what constitutes SRI, and how best to invest responsibly. This confusion is not surprising, given the increasing number of new offerings in this area.

The survey also reveals that 51% of respondents actively undertake investments which are in keeping with their values. Of those, 25% employ an SRI strategy, actively seeking out investments that reduce environmental impacts or demonstrate employment best practice. 15% engage in 'impact investing,' either directly, in partnership with other families or through funds.

While it is encouraging to see that investors are seeking to align their investments with their values, the survey also highlights that very few have clear criteria for how much investment return they are prepared to forego to invest responsibly. This is an important consideration, as it is often assumed that socially responsible investing involves sacrificing returns in favour of doing good. However, there is growing evidence that companies with strong environmental, social, and governance (ESG) practices can outperform their peers over the long term.

So, how can investors approach socially responsible investing? One way is to consider incorporating ESG criteria into their investment decision-making process. This involves considering factors such as a company's environmental impact, treatment of employees, and corporate governance alongside traditional financial metrics. By doing so, investors can identify companies that are not only financially sound but also have strong ESG practices.

Another approach is to invest in funds or products that have a specific focus on social and environmental impact. These could include funds that invest in companies with strong ESG practices or funds that specifically target areas such as renewable energy or affordable housing.

In conclusion, socially responsible investing is about more than just financial returns. It is about aligning your investments with your personal values and making a positive impact on the world we live in. While there is still some confusion around what constitutes SRI, there are various approaches investors can take, from incorporating ESG criteria into their investment decision-making process to investing in funds that target specific social and environmental impact areas. Ultimately, by investing in a socially responsible manner, investors can not only make a positive impact but also potentially achieve strong financial returns over the long term.