detractors will cite alternative research which finds no relationship between good governance and financial performance. Detractors explain that socially responsible INVESTMENT (SRI) RELIES on negative screening, thereby reduces the size of the potential PORTFOLIO and therefore decreases financial returns.

This is an outdated and simplistic view of SRI. Similarly, the use of the term “non-financial” suggests to me an outdated view of risk management. Today the financial industry embraces the term “extra-financial” and assigns the indicators to three categories – environmental, SOCIAL and governance. These indicators are analyzed and managed due to their direct and/or indirect impact on triple bottom LINE performance.

detractors will cite alternative research which finds no relationship between good governance and financial performance. Detractors explain that socially responsible investment (SRI) relies on negative screening, thereby reduces the size of the potential portfolio and therefore decreases financial returns.

This is an outdated and simplistic view of SRI. Similarly, the use of the term “non-financial” suggests to me an outdated view of risk management. Today the financial industry embraces the term “extra-financial” and assigns the indicators to three categories – environmental, social and governance. These indicators are analyzed and managed due to their direct and/or indirect impact on triple bottom line performance.