More Than Money
Issue #10

Learning From Each Other

Table of Contents

“Alive and Kicking”

In the 80's, millions of people worldwide stopped investing in companies that did business in South Africa (as part of campaigns to exert economic pressure.) Once apartheid fell, many socially responsible investment professionals feared that investors would stop using social screens.

I was greatly encouraged by a recent survey conducted by the Social Investment Forum that indicates socially responsible investing is still flourishing. I thought I'd share the good news with other More than Money readers via a sampling of statistics.

How much is invested? Of the $7 trillion in managed funds in the U.S., $639 billion (about 9%) is in SRI.

After apartheid, did most managers stop doing SRI? No, 78% of all money managers in the U.S. who made socially responsible investments on behalf of clients continued to do so.

  • More than two out of five (42%) screens for human rights.
  • Over one out of three (38%) screens for environmental concerns.
  • One in four (24%) screens for animal rights.
  • One in five (22%) screens for employee relations.

If disinvestment in South Africa is no longer a primary concern, what other criteria are important to investors? Investors are shifting from avoidance of "sin stocks" (alcohol, tobacco, gambling and production of weapons) to more positive screens, and 91% of the money in responsibly invested portfolios today is managed with three or more screens.

I am pleased that the SRI movement is growing in maturity and health--aren't you? If you want the full report, please give me a call. David Crocker, 800/843-0211.

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