Socially Responsible Investment (SRI)

Socially Responsible Investment (SRI) — also known as ethical investing or values-based investing — is an investment approach that integrates environmental, social, and governance (ESG) criteria alongside traditional financial analysis to identify and select investments in companies, funds, or projects that align with the investor's ethical values, social responsibilities, or sustainability principles. SRI typically involves screening out industries considered harmful — such as tobacco, weapons, gambling, or fossil fuels (negative screening) — or actively selecting companies with strong ESG practices and positive social impact (positive or best-in-class screening). SRI is a precursor to and overlaps significantly with the broader modern ESG investing framework. In India, SEBI mandates ESG disclosures for the top 1,000 listed companies through the Business Responsibility and Sustainability Report (BRSR), and the mutual fund industry offers SEBI-regulated ESG funds. For investors on Ventura Securities seeking to align their portfolios with personal values without sacrificing financial returns, SRI and ESG-integrated strategies provide a structured framework for doing so — supported by growing evidence that strong ESG practices correlate with superior long-term risk-adjusted financial performance.