Social Impact Investing

as the Sullivan Principles. However, reports documenting the application of the Sullivan
Principles said that US companies were not trying to lessen discrimination in South
Africa. Due to these reports and mounting political pressure, cities, states, colleges,
faith-based groups and pension funds throughout the US began divesting from
companies operating in South Africa. In 1976, the United Nations imposed a mandatory
arms embargo against South Africa. From the 1970s to the early 1990s, large
institutions avoided investment in South Africa under apartheid. The subsequent
negative flow of investment eventually forced a group of businesses, representing 75%
of South African employers, to draft a charter calling for an end to apartheid. While the
SRI efforts alone did not bring an end to apartheid, it did focus persuasive international
pressure on the South African business community.
The mid and late 1990s saw the rise of
SRI’s focus on a diverse range of other
issues, including tobacco stocks, mutual
fund proxy disclosure, and other diverse
focuses.
Since the late 1990s, SRI has become
increasingly defined as a means to
promote environmentally sustainable
development. Many investors
consider effects of global climate
change a significant business and
investment risk. CERES was
founded in 1989 by Joan
Bavaria and Dennis Hayes,
coordinator of the first Earth
Day, as a network for
investors, environmental
organizations, and other public interest groups interested in working with companies to
address environmental concerns.
Since 1989, representatives from the SRI industry have gathered at the annual SRI in
the Rockies Conference to exchange ideas and gain momentum for new initiatives. This
conference is produced by First Affirmative Financial Network, an investment advisory
firm that specializes in sustainable and responsible investing. The conference has
attracted over 550 persons annually since 2006.
The first sell-side brokerage in the world to offer SRI research was the Brazilian bank
Unibanco. The service was launched in January 2001 by Unibanco SRI analyst
Christopher Wells from the São Paulo headquarters of the bank. It was targeted at SRI
funds in Europe and the US, although it was sent to non-SRI funds both in and out of
Brazil. The research was about environmental and social issues (but not governance
issues) regarding companies listed in Brazil. It was sent for free to Unibanco's clients.
The service lasted until mid-2002.
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