Investors are backing socially responsible firms and funds at a rate much higher than the rest of the market. In a report released today, analysts found that assets in socially responsible investment (SRI) grew 16 per cent to just over $600 billion since 2010, while total assets under management grew by only nine per cent.
The report by the Social Investment Organization points to continuing concern over the 2008 economic crisis combined with growing wariness over the environment for boosting the fortunes of SRI over more conventional investments. The report’s authors credit the large institutional investors like the pension fund sector and the growing class of social finance, or impact investors for leading the move to SRI.
Up from $518 billion in 2010, the $600.9 billion SRI market represents 20 per cent of assets under management in the financial industry.
In a press release, Priscilla Boucher, Assiniboine Credit Union’s vice president of corporate social responsibility says, “It’s not surprising to see the 20 per cent growth in impact investing over the past year and a half. Sometimes the only thing standing between individuals seeking to better their lives, or organizations working to solve social or environmental problems is access to the capital they need to be successful. More and more investors who care about their local community are realizing the power of their targeted investments.”
To read the full report, Canadian Socially Responsible Investment Review 2012, click here.