Socially responsible investing: an overview of SRI and PRI

Nikita Veremeev

05.09.2025 | 6 min read

Updated: 05.09.2025

SRI and PRI are increasingly appearing in investment strategies, reflecting a new perspective on how capital can work not only for profit but also for societal benefit. Understanding what SRI and PRI mean in investing is important for anyone who wants to combine financial goals with personal values and a responsible approach to asset selection.

The Evolution of SRI and PRI

Socially responsible investing originates from ethical investments when individual investors excluded companies associated with tobacco, weapons, or gambling from their portfolio. However, with the development of international markets and the emergence of global challenges: from climate change to social inequality, SRI has evolved into a comprehensive system integrating ESG investments (Environmental, Social, Governance) and sustainable corporate governance.

In 2006, under the auspices of the UN, the Principles for Responsible Investment (PRI) were formulated, becoming a global guide for institutional investors and companies. Today, over 5,000 organizations worldwide have signed the PRI, including the largest funds and holdings in Europe and Asia. COREDO’s experience shows: integrating PRI into corporate strategy is not just a reputational step but a tool for creating long-term value and managing multi-factor risks.

International Standards for SRI and PRI

PRI (Principles for Responsible Investment): a framework for integrating ESG factors into investment analysis and decision-making.
GRI (Global Reporting Initiative), a sustainability reporting standard used to disclose non-financial performance indicators.
AA1000, SA8000 – standards for assessing corporate social responsibility and social effectiveness.
International ESG ratings (MSCI ESG Ratings, Sustainalytics, FTSE4Good): these allow for screening companies by ESG criteria and comparing them on a global level.

The COREDO team regularly assists clients in choosing and implementing relevant reporting standards, considering the specifics of the industry, jurisdiction, and requirements of institutional investors.

CSR and SRI: Connection and Features

Corporate social responsibility is an integral part of a modern SRI strategy. Implementing CSR policies helps companies not only reduce reputational risks but also build trust with clients, partners, and regulators. COREDO’s practice confirms: companies integrating CSR into business processes demonstrate more sustainable growth, gain access to new sources of financing, and strengthen their positions in international ESG rankings.

Thus, increasing corporate responsibility becomes the foundation for transitioning to broader ESG initiatives.

ESG Investments: What Are They and How to Start?

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ESG investments: this is the new standard for responsible investing: besides profit, investors consider environmental, social, and governance factors. Let’s understand how this approach works and why analyzing ESG factors is becoming an integral part of the modern investment process.

ESG Factors in Investment Analysis

Integrating ESG factors into Due Diligence and investment analysis becomes a mandatory step for international companies. The multi-factor risk analysis developed at COREDO allows for the identification of non-obvious threats – from climatic to social – and takes them into account when forming an SRI investment portfolio. This approach ensures not only compliance with sustainable investment standards but also reduces the likelihood of financial and reputational losses.

SRI Tools for Business

Green bonds: financing environmental projects with transparent reporting on emission reductions and resource conservation.
Social bonds, investments in projects with a pronounced social effect: education, healthcare, infrastructure.
Impact investing: investments with measurable impact on society and the environment, integration of SDGs (Sustainable Development Goals) into the investment strategy.

The solutions developed at COREDO allow clients to effectively diversify their SRI portfolio using both traditional and innovative sustainable investment instruments.

Screening Companies by ESG Criteria

Positive and negative asset screening: key methods for selecting companies for an SRI portfolio. Positive screening focuses on ESG leaders, while negative screening excludes companies with high levels of environmental, social, or governance risks. At COREDO, we apply a comprehensive approach: analyzing the transparency of the supply chain, corporate sustainability standards, as well as compliance with the UN Global Compact and other international initiatives.

ROI of Social Investments: How to Assess?

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Assessing ROI of social investments: a task requiring consideration of both financial and intangible results. To understand how effectively funds are invested in social projects, it’s important to understand how to measure not just classic ROI but SRI: social return on investments.

How to Measure ROI and SRI

Assessing the effectiveness of SRI requires a balance between financial and non-financial metrics. Classic ROI is complemented by indicators of social impact, environmental effect, and reputational capital.

Metric	Description	Examples of Application
Financial ROI	Returns compared to traditional	Comparison of SRI profitability
Social Impact	Impact on society, SDG	Number of jobs created, contribution to SDG
Environmental Effect	Reduction of emissions, resource conservation	CO2 savings, green bonds
Reputational Capital	Image improvement, risk reduction	Increased investor trust

COREDO’s practice shows: implementing a system of regular evaluation and transparent reporting on these metrics significantly increases investor and partner trust.

ESG Standards: How to Choose and Implement

Choosing a reporting standard depends on the business geography, industry, and stakeholder requirements. GRI ensures maximum transparency for international companies, and AA1000 and SA8000 for assessing social responsibility and working conditions. At COREDO, we recommend conducting a compliance audit to standards before implementation to avoid mistakes and enhance the quality of sustainability reporting.

Impact of SRI on Capital Cost

Implementing SRI and ESG factors reduces the cost of capital and eases access to financing: banks and institutional investors increasingly require ESG reporting and demonstration of sustainable business practices. A comparative analysis conducted by COREDO for clients in the EU and Asia showed that companies with high ESG ratings receive more favorable credit conditions and investment preferences.

Risks and Compliance in SRI: International Experience

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In the context of increased global standards for transparency and sustainability, risk management and compliance become key elements for successful SRI strategies. International experience shows that competent implementation of compliance practices helps reduce both investment, legal, and reputational risks.

Thus, strengthening the compliance system becomes the foundation for subsequent effective investment risk management.

SRI: How to Reduce Investment Risks

SRI is an effective tool for managing reputational and investment risks. Implementing responsible investment and stewardship policies minimizes the likelihood of litigation related to environmental and social violations. For example, one of COREDO’s clients in the Czech Republic avoided multi-million losses thanks to the timely implementation of ESG due diligence when entering a new market.

How to Avoid Greenwashing in an SRI Strategy

Greenwashing is one of the main threats for companies declaring SRI approaches. To avoid accusations of eco-imitation, COREDO recommends:

Implementing transparent reporting standards (GRI, AA1000).
Conducting independent audits of ESG metrics.
Publicly disclosing goals and results of SRI initiatives.
Involving stakeholders in the decision-making process.

This checklist helps our clients maintain investor trust and avoid reputational losses.

SRI Compliance Standards in the EU and Asia

SRI regulation in the EU and Asia is becoming increasingly stringent. The EU’s SFDR (Sustainable Finance Disclosure Regulation) requires financial institutions to disclose ESG risks and responsible investment policies. In Singapore and Japan, local standards for ESG disclosure and due diligence are being introduced. The COREDO team regularly updates client compliance procedures considering regulatory changes, ensuring compliance with international and local requirements.

SRI Implementation Practice: Cases and Trends

Illustration for the section 'SRI Implementation Practice: Cases and Trends' in the article 'Socially Responsible Investing (SRI, PRI) – Overview'

The practice of implementing SRI is actively developing worldwide, and the interest in new approaches is confirmed by the growing number of implemented projects. Let’s consider cases and current trends in SRI implementation to understand which solutions show the best results today and where the market is heading.

Successful SRI Projects in Europe and Asia

In the Czech Republic, the COREDO team supported the launch of an investment fund focused on green bonds and energy efficiency projects, resulting in the attraction of institutional investors from the EU and an increase in the ESG rating. In Singapore, a project was implemented to introduce impact investing in the healthcare sector, which allowed the client to not only increase capitalization but also enter the international FTSE4Good index.

How to Implement SRI in a Company’s Portfolio

Analyze goals and expectations: determine priority ESG directions.
Select reporting standards and ratings: compliance audit with GRI, PRI.
Form an SRI portfolio – screen assets by ESG criteria.
Implement ESG due diligence procedures: integrate into investment analysis.
Monitoring and reporting: regular effectiveness assessment and publication of sustainability reporting.

This methodology, refined by COREDO in practice, allows companies to minimize risks and enhance investment transparency.

SRI: Trends and Innovations 2025

Key trends: automation of ESG analysis using AI, development of tools for small and medium-sized businesses, growth of institutional stewardship, and active shareholder participation. At COREDO, we are implementing digital platforms for monitoring ESG metrics and helping clients integrate SDGs into their corporate growth strategy.

Recommendations for Business: What to Know

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Socially responsible investing is not just a trendy term but a strategic tool for long-term growth and competitiveness of a company. Integrating ESG factors into investment analysis, transparent reporting, and SRI integration into risk management strategy allows businesses to:

Increase trust among investors and partners.
Reduce capital cost and access new sources of financing.
Minimize reputational and investment risks.
Strengthen positions in international ESG and SDG rankings.

Practical Steps for Entrepreneurs and Executives:

Conduct an audit of current business processes for compliance with ESG standards.
Select relevant reporting standards (GRI, PRI, AA1000).
Implement a system of regular monitoring and evaluation of SRI effectiveness.
Ensure stakeholder involvement and supply chain transparency.
Use SRI tools to diversify the investment portfolio.

COREDO’s experience confirms: the success of an SRI strategy depends not only on the right choice of tools but also on a systematic approach to risk management, compliance, and corporate culture. If you strive to integrate SRI into your company’s growth strategy, the COREDO team is ready to offer solutions proven by international practice and adapted to the specifics of your business.

Socially responsible investing SRI PRI overview