Paper Key : IRJ************055
Author: Amrutha Kp
Date Published: 11 Jun 2024
Abstract
Social investing, also known as sustainable or socially responsible investing (SRI), combines environmental, social, and governance (ESG) aspects with standard financial measurements to provide both financial returns and positive societal consequences. This investment strategy provides various advantages, including value alignment, risk reduction, long-term performance, stakeholder engagement, and market transformation. However, issues such as subjectivity, performance trade-offs, greenwashing, a narrow investment universe, and increased complexity and expenses remain. Despite these challenges, social investing is gaining traction, fueled by shifting investor tastes, legal developments, and growing environmental awareness. The future of social investing is projected to be characterized by increased standardization and disclosure, better impact assessment and reporting, greater integration of ESG elements into traditional investment strategies, financial innovation, and active stakeholder engagement Social investing has great potential to help create a more resilient, equitable, and sustainable future.