scholarly journals Socially responsible investing: from the ethical origins to the sustainable development framework of the European Union

2021 ◽  
Author(s):  
Alice Martini
Keyword(s):  
European Union ◽  
Socially Responsible Investing ◽  
Quality Data ◽  
Special Focus ◽  
The European Union ◽  
Socially Responsible ◽  
The Sustainable Development ◽  
Responsible Investing ◽  
Development Framework ◽  
Critical Issues

AbstractIn this work, we present an overview of the historical development of socially responsible investing (SRI). We will argue that such a financial activity has been boosting in recent decades from a niche, mainly as a religious-led exclusionary practice, towards a mainstream strategy of risk analysis for institutional and retail investors. We also discuss the advances and possible drawbacks that regulatory activity and harmonization process on such industry have achieved at international level in recent years, with a special focus on the European Union. The study shows that the lack of a globally accepted taxonomy on what constitutes sustainable activities, of regulatory clarity and of high-quality data allowing for comparisons across industries and regions, together with practical and behavioural complexities are major critical issues that discourage SRI industry at the global level.

Approaches to shaping portfolio strategies based on the socially responsible investing concept

2021 ◽  
Vol 14 (4) ◽  
pp. 376-392
Author(s):  
Natal'ya A. KHUTOROVA ◽  
Nikita A. NAZIN
Keyword(s):  
Financial Markets ◽  
Graphical Analysis ◽  
Socially Responsible Investing ◽  
Socially Responsible ◽  
The Sustainable Development ◽  
Analysis Techniques ◽  
Responsible Investing ◽  
Portfolio Strategies ◽  
General Scientific ◽  
Russian Stock Market

Subject. The article considers formulation of portfolio strategies that rest on the concept of socially responsible investing. Objectives. The purpose of this study is to analyze approaches to shaping the portfolio strategies based on the principle of socially responsible investing in the Russian stock market. Methods. The study employs general scientific research methods; logical, comparative, and statistical analyses; graphical analysis techniques. Results. We formulated and tested two strategies of socially responsible investing, i.e. Short ESG Ranking of Russian Companies and Long ESG Ranking of Russian Companies. The testing demonstrated below market return for the entire period. Thus, the strategies cannot be considered effective. To increase profitability, we proposed to optimize the strategies by including ESG-related debt instruments. Green bonds enabled to significantly increase profitability and outstrip OFZ yields. Despite the fact that according to the testing, the effect of both strategies turned out to be worse than IMOEX and MOEXBC indices, the strategies can be considered as relevant and acceptable for portfolio simulation. Conclusions. Under the current conditions in the financial markets caused by serious shocks during the coronavirus pandemic and significant changes in the monetary policy of the Bank of Russia, the proposed strategies can be used by socially responsible institutional investors to shape investment policy and by individuals to manage funds in individual investment accounts. New bonds of Russian issuers in the sustainable development sector of the Moscow Exchange expanded the list of ESG instruments. They can serve as an effective optimization tool.

Understanding Socially Responsible Investing and Its Implications for Islamic Investment Industry

2019 ◽  
Vol 7 (1) ◽  
pp. 1
Author(s):  
Mohd Nizam Barom
Keyword(s):  
Investment Decision ◽  
Socially Responsible Investing ◽  
Clear Understanding ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Developed Economies ◽  
Responsible Investing ◽  
Screening Strategies ◽  
Investment Process ◽  
Islamic Investment

Understanding Socially Responsible Investing and Its Implications for Islamic Investment Industry // // // // // Social, ethical and environmental concerns have been used as important consideration for investment decision by an increasing number of investors. This can be seen by the size and growth of the socially responsible investment (SRI) industry in the developed economies. At the same time, scholars and commentators of Islamic finance have also called for Islamic investment industry to learn from the experience of SRI in incorporating social responsibility issues in the investment process, in line with the ethical principles of Islam and the overall objective of the Shari’ah (Maqasid al-Shari’ah). This would require Islamic investment sector to have a clear understanding of the SRI industry in order to effectively benefit from its experience. This is particularly critical due to the significant diversity of investors and complexity in the issues and strategies adopted in the SRI industry. Hence, this paper adds to the Islamic investment literature by providing an extensive  and systematic survey of SRI industry in terms of its (i) underlying motivations and values; (ii) issues of concerns; (iii) types of investors; and (iv) screening strategies. It then synthesizes these components within the context of the ‘value-based’ investors. This synthesized framework offers a useful tool for Islamic investment practitioners to understand the theoretical and practical aspects of SRI. Subsequently, the paper highlights important implications of the findings for Islamic investment industry in terms of the issues that it needs to consider in emulating SRI practices and a number of lessons that it can learn from the SRI experience.  

scholarly journals The Role of EU Innovation Policies in the Sustainable Development of the Energy Sector

2017 ◽  
Vol 62 (2) ◽  
pp. 3-19 ◽  
Author(s):  
Olesea Sirbu ◽  
Rodica Crudu ◽  
Augustin Ignatov
Keyword(s):  
European Union ◽  
Sustainable Development ◽  
Energy Sector ◽  
Sustainable Growth ◽  
The European Union ◽  
Demographic Pressure ◽  
The Sustainable Development ◽  
Global Power ◽  
Energy Domain ◽  
The Impact

Abstract In the present conditions when the demographic pressure upon the environment is higher than ever, the humanity faces the challenge of sustainability. Namely the sustainability of human activities is important and nothing can assure it better than sustainable energy supplies. The European Union is the leading global power in terms of adjusting its policies to increase innovation to assure a sustainable growth of its energy sector as a key to an advanced economic system. The present research focuses on the impact of European Union policies on the sustainable development of its energy sector by analyzing quantitatively and qualitatively various indicators intended to offer a throughout insight. The results obtained focus on the identification of the main innovation paradigms; the description of the main modern environmental challenges, especially in the energy domain; the determination of the relation between innovation and energy sustainability, and its analysis at the level of European Union.

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