The Triple Bottom Line Blog

Check out this must-read article by Joe Keefe, president and CEO of Pax World, one of the best-known firms in the world of socially responsible investing. Keefe's theme is the coming transition from socially responsible investing to sustainable investing. The difference, as he explains, is more than just semantic. In comparison to SRI, sustainable investing:

• Is defined positively and proactively rather than negatively and defensively;
• Pursues strong financial results through the managerial benefits of sustainability, rather than merely asserting "you don't have to sacrifice performance";
• Focuses on identifying the best-run companies in the world, rather than on weeding out "bad" companies (such as tobacco marketers or arms dealers); and
• Takes an unabashedly progressive political and social stance, rather than trying to maintain a values-neutral posture.

Most important, Keefe believes the new sustainability orientation has the potential to appeal to a far broader market base than SRI has reached. Therefore he forecasts a remarkable growth spurt for the business in years to come. Agree or not, it's a well-thought-out article by an important industry leader, one that's likely to fuel much discussion in the weeks and months ahead.

Labels: Finance and Investment, Joe Keefe, Pax World