About the Social Investment Organization



Established in 1989, the Social Investment Organization is a national non-profit organization dedicated to the advancement of socially responsible investment in Canada. It is funded primarily from membership dues and is accountable to its membership. The SIO has over 400 members across Canada, representing:



* Socially- and environmentally-screened mutual funds and their staff

* Financial institutions providing socially responsible investment products or operating according to corporate social responsibility principles

* Investment advisors providing advice and assistance on socially responsible investment

* Investment managers managing socially responsible investment assets

* Institutions investing according to socially responsible investment guidelines

* Retail investors investing according to socially responsible investment guidelines

* Non-governmental organizations and other groups with an interest in responsible investment



Our members serve more than half a million depositors and investors in Canada.



The SIO works to raise the public profile of socially responsible investment; to reach out to other groups interested in socially responsible investment; to provide information to our members and the public and to take a leadership role in coordinating the development of the socially responsible investment agenda in Canada.



Socially responsible investment is defined as the process of selecting or managing investments according to social or environmental criteria. As of June 2002, we estimate there was $51.4 billion in socially responsible investment assets in Canada.



Socially responsible investment includes three components:



* Positive and negative screening. This is the application of social and environmental guidelines or “screens" to the investment process. Negative screens usually include issues such as tobacco and military production, companies operating with sweatshop or child labour, or the manufacture of alcohol or pornography. Examples of positive screens are companies making a contribution to social, economic or environmental sustainability or industries with exemplary employee practices.



* Community Investment. This is the investment of money in community development or micro-enterprise initiatives that contribute to the growth and well-being of particular communities. The idea is to reverse the drain of capital and income that debilitate low-income communities.



* Shareholder Advocacy. As owners of publicly traded companies, either directly through stocks or indirectly through mutual funds and pension funds, investors can use their shareholder influence to help bring about positive social and environmental change within corporations. This can include corporate engagement [communicating with management on particular issues], filing shareholder resolutions and using the threat of divestment to bring about positive change.



SIO members believe that socially responsible investment represents a catalyst for positive social change as well as a useful investment tool to enhance returns and reduce risk by incorporating social and environmental factors traditionally excluded from portfolio management.