Socially responsible investment suffers from preconceived notions. The following are a few examples: 

First misconception : SRIs perform less well on the stock market

False: Up to now, there is no verifiable evidence of the performance of SRIs over the medium/long-term compared with that of non-SRIs. However, there are a considerable number of studies which show that SRIs do not underperform.

Similarly, if we look at the ASPI Eurozone(r), we will see that over the last few years, its performance has been virtually identical to its benchmark index, the Dow Jones Euro Stoxx.

Moreover, SRIs offer two advantages:  in the short-term, reduction of the risk of market accidents, and in the medium term, improvement of the yield/risk ratio of portfolios.

Second misconception : SRI is restricting  

False: It is perfectly possible to put in place a socially responsible investment policy (SRI) gradually and on a customized basis. It is thus possible to:

• Invest in SRI over part or all of a portfolio;
• Utilise active or passive management (per index);
• Utilise a turn key formula (Ethibel range of products or services);
• Define a management based on own criteria.   

Third misconception : SRI only concerns shares    

False: The Vigeo Group also offers screening for bond issuers, using a specific methodology.   

Perception: SRI may be more attractive for mid-long term investments rather than short term investments.   

True:     

• SRI is particularly recommended for medium and long term investment management, such as: wage-based savings for retirement, pension funds, private equity, etc.
• It can also prevent brutal accidents on portfolios, linked to CSR risks.