In the US, over US$2.34 trillion resides in professionally managed portfolios utilising one or more of the three strategies that together define socially responsible investing - screening, shareholder advocacy, and/or community investing. The figure is up 8 per cent from US$2.16 trillion recorded in 1999. (Social Investment Forum's 2001 Trends Report)

One out of every 8 dollars invested in the US is SRI. (Social Investment Forum 2001 Trends Report)

In the US, 11 of the 15 screened funds (73 percent) with US$100 million or more in assets earned top marks for performance from either or both Morningstar and Lipper ratings for the one- and three- year periods ending September 30, 2001. (Social Investment Forum)

According to Morningstar, 35 percent of the socially responsible mutual funds (19 out of 54) they track earned either four or five stars, compared with 32.5 percent of all mutual funds. (October, 2001 Social Investment Forum)

In the US, the number of social screening mutual funds has grown from 168 in 1999 to 230 in 2001. (Social Investment Forum 2001 Trends Report)

In Canada, the SRI market was worth US$1.31 billion in terms of asset under management, as of October 2000. (Social Investment Organisation at www.socialinvestment.ca)

In Australia, the SRI market was worth $13.9 billion (US$ 9.1 billion), as of September 2002. (Ethical Investment Association benchmarking report: http://www.eia.org.au/)

In Europe there are about 220 SRI funds.

In the UK, the value of funds actively implementing an SRI policy, including retail funds, was about 120 billion pounds in October 2001, up from 52 billion pounds in December 1999. (UK Social Investment Forum)

In the UK, the current number of Retail Funds screened using SRI criteria is 60. (Ethical Investment Research Service, August 2001).

In Germany SRI funds have trebled from 500 million Euros to 1.5 billion in the 2000.

In 1999, Sustainable Asset Management's (Switzerland) and Dow Jones joined forces to create the first global Sustainability Index .

Reasons for Growth

Consumer Demand

In line with a general increase in environmental and social awareness consumers are now demanding in greater numbers that their money be invested in line with their personal beliefs. Positive screening and active management has made SRI funds more attractive to consumers. This trend has been reinforced by the rapid growth of SRI options in 401K pensions in the US.

Active Management

Another reason for the growth of SRI has been the evolution of portfolio mangement techniques and more sophisticated research tools (such as the Innovest environmental rating service). The traditional approach to SRI, was a passive screen, whereby investments in companies with unacceptable practices were avoided. Typically, this research is conducted by external agencies and the fund manager without changing his view of industries or markets, simply selects stocks from the universe of 'acceptable' companies provided. More recently a new breed of fund manager has emerged with a view of markets and company prospects which is driven by their understanding of the global sustainability agenda along with other factors in a fully integrated way. This, more fundamental stance has provided a much more robust case for SRI, some would say 'a capturing of the intellectual high ground' concerning analysis for enhanced corporate earnings.

Government Regulation

Consumer power is being reinforced further by regulation. In Denmark the default government pension scheme is an SRI scheme.

In the United Kingdom a new SRI requirement for occupational pension schemes has been introduced. From 3 July 2000, under a revision to the 1995 Pensions Act, trustees are required to declare in their statement of investment principles:

i. The extent (if at all) to which social, environmental or ethical considerations are taken into account in the selection, retention and realisation of investments; and

ii. The policy (if any) directing the exercise of the rights (including voting rights) attaching to investments.

This legislation has already begun to affect the UK institutional scene. A survey from UKSIF discovered 59% of occupational pension funds (representing 78% of the total assets) incorporate some level of SRI into their investment strategies.

In the US the Department of Labour has equally confirmed that fiduciary standards do not preclude the consideration of SRI investments