/ 9 July 2010

Socially responsible investing

Curtis asks: Could you could direct me to a resource which helps me understand and become acquainted with Socially and Environmentally Responsible companies I could invest in?

Maya replies: A good starting point is the JSE’s Socially Responsible Investment index.
It is a ”broad-based triple bottom line and governance index, which has become a widely accepted gauge for good corporate citizenship for listed entities”. This means it looks at environmental sustainability, staff relations and good corporate governance.

You can find out more at:
http://www.jse.co.za/About-Us/SRI/Constituents/SRIIndexConstituentsfor20

Alternatively you can speak to fund managers like Malcolm Gray from Investec Asset Management’s SRI unit. He can provide insight into what he looks for when he selects companies and he is very passionate about the topic.

I strongly believe that companies that take care of the environment, their staff and do good business will be the ones who will deliver to shareholders in the long-run, so it is definitely worth doing research on these companies.