Socially Responsible Investment incorporates extra-financial criteria (environmental, social and governance) into the selection of securities. To compile SRI funds, the financial institutions select the most highly-performing companies in their sector from a double selection, financial and extra-financial. They can therefore choose companies quoted in the SRI index families.
The four major families are:
- Dow Jones Sustainability Index Stoxx (New York Stock Exchange)
- Dow Jones Sustainability Index World (New York Stock Exchange)
- ASPI Eurozone (Euronext)
- FTSE4Good (London Stock Exchange).
Extra-financial rating agencies assess and rate the practices of companies with respect to environmental, social and governance challenges. These three financial markets use the analyses from the SAM, Vigeo and EIRIS agencies to select the companies.