Social Responsible Investment (SRI) Indonesia

Socially responsible investment (SRI) combines investor's financial objectives with their commitment to social and environmental concerns.  It allows investors to choose companies or funds that meet certain ethical and moral standards.  For example, an investor might choose funds that invest only in environmentally conscious companies ("green funds"), funds that invest only in hospitals and health care centres, or funds that avoid investing in alcohol or tobacco companies. 

The UK Social Investment Forum has identified three major SRI strategies that have evolved over time:

• Ethical Screening - the inclusion or exclusion of stocks and shares in unit trusts, investment trusts or other investment portfolios on ethical or environmental grounds.
  
  
• Shareholder influence - seeking to improve a company's ethical, social and/or environmental behaviour as a shareholder by means of dialogue, pressure, support for responsible management and voting at annual general meetings.
  
  
• Cause-based or community investing - supporting a particular cause or activity by financing it through investment. Unlike making a donation, cause-based investors require that the original investment can be returned by either repayment (for loans) or trading (for shares).

Why do people invest in SRI?

Through socially responsible investing, investors, banks and companies can make sound investment decisions and at the same time enrich society and protect the environment. Europe 's growing stock of green and ethical funds are answering a demand from investors for new financial opportunities that achieve complete success: economically, environmentally and socially.

Today's leading responsible companies are doing more than just setting a good example in the community. They are also showing that socially and environmentally sound management practices go hand-in-hand with winning business strategies, thereby benefiting the long-term financial performance of their company.

Not only can CSR management help protect companies from fall-out from social and environmental crisies that could damage their brand value, it can also generate greater efficiency and sustainability within company practices. These are strategic clues that point in the direction of a well-run company - signs of a good investment.

How big is the SRI market in Europe?

SRI is one of the fastest growing sectors of the European and global markets - there are currently more than €14 billion assets under management in the European SRI market. 

What do investors and financial analysts think of SRI?

86% of investors believe that social and environmental risk management improves a company's market value in the long term.  

Bali International Consulting Group identifies potential Social Responsible Investment projects in Indonesia and provides extensive consulting and research services on SRI in Indonesia and abroad, including supporting international SRI campaigns and conferences.