What’s the difference between SRI and ESG investing? Is SRI investing a subset of ESG?
Other way around. ESG subset of SRI (SRI an older term).
I would like to know this too.
SRI - The term has evolved to include investment objectives that promote positive social attributes, often by investing in companies with favorable environmental or social profiles.
(Institute 36)
Institute, CFA. 2019 CFA Program Curriculum Level I Volume 4. CFA Institute, 5/2018. VitalBook file.
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So it seems that now SRI is the same as ESG?
^Kinda. A very basic example is an SRI fund would never invest in tobacco companies. Some ESG funds will. Being “socially responsible” is more like looking for companies that don’t do “bad” stuff. Oil, alcohol, gambling, etc. ESG is more about corporate leadership (the governance part) and being sure they’re doing the right thing.