Socially Responsible Investments: Explained

SRI is an investment strategy designed to achieve financial returns & bring positive impact. Click to learn more about socially responsible investment!

May 10, 2022|Education- 1 min

We want to make a better world.” Many companies have exhausted the use of similar slogans trying to align with the growing trend of “responsible investing.” Although investing isn’t often associated with making the world better, the profitability of socially responsible investing (SRI) that promotes social and environmental goals has proven to be more sustainable over the long term.

What is SRI?

SRI is an investment strategy that achieves financial returns with positive societal impact. It would include companies that espouse social justice and environmental sustainability, and exclude those that inflict damage by producing or selling addictive substances (e.g. opiates, alcohol and tobacco). The strategy focuses on investing in companies that are conscious of sustainability and community improvement. SRI practices are often guided by a framework of environmental, social and governance (ESG) that assesses the sustainability and social impact of investments.

Why SRI?

Sustainability practices are positively correlated with long-term investment returns. Socially responsible funds tend to outperform traditional funds with less volatility by selecting investments that are compatible with ESG goals. SRI assesses the financial outlook of investments while gauging their social value.

A 2019 PricewaterhouseCoopers survey of responsible private equity investment revealed that 91% of respondents have either already adopted a responsible investment policy or are developing one.[1]

How to Responsibly Invest?

SRI covers different investment approaches. The negative screening approach evaluates the practices, products and services of a company before investing in it. The positive investing approach collaborates only with companies that adhere to sustainable and positive practices. The community investing approach, regarded among the best SRI approaches, entails investing in projects that boost the economic welfare of local communities.

Important Considerations

SRI is quite flexible, allowing investors to explore the investments that fit their expectations and preferences. Such investments often mirror the political and social climate of the time, and their performance depends on society’s sentiment in different economic or political contexts. The Family Office endeavors to make responsible investment decisions that agree with investors’ values and are resilient to social and political fluctuations.


[1] Responsible Investing - It’s Decision Time (

About The Family Office

Since 2004, The Family Office has been the wealth manager of choice for more than 500 ultra-high-net worth families and individuals, helping them preserve and growth their wealth through customized solutions in diversified alternatives and more. Schedule a call with our financial experts and learn more about our wealth management process.

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The Family Office Co. B.S.C (c) is licensed as a category 1 Investment Firm by the Central Bank of Bahrain C.R.No.53871 dated 21/6/2004. Paid Up Capital: US$ 10,000,000. P.O. Box 18024, Manama, Bahrain.

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