---
title: Does It Work? Myth-Busting and Fact-Finding Socially Responsible Investing
description: There seems to be a lot of misinformation about what Sustainable Investing is and isn’t. Here are some common myths we hear about SRI.
image: https://blog.birchwoodfp.com/hubfs/AdobeStock_259529026-1.jpeg
---
[](https://www.birchwoodfp.com/)
Phone: [952-885-9088](tel:19528859088)[](https://cta-redirect.hubspot.com/cta/redirect/3811900/47770b11-5936-41e0-b9cf-9b391581cd7a)
Phone: [952-885-9088](tel:19528859088)
[](https://cta-redirect.hubspot.com/cta/redirect/3811900/47770b11-5936-41e0-b9cf-9b391581cd7a)
# Perspectives
- Share
- [**](https://www.facebook.com/sharer/sharer.php?u=https://blog.birchwoodfp.com/socially-responsible-investing)
- [**](https://twitter.com/intent/tweet?url=https://blog.birchwoodfp.com/socially-responsible-investing)
- [**](https://plus.google.com/share?url=https://blog.birchwoodfp.com/socially-responsible-investing)
- [**](https://www.linkedin.com/shareArticle?url=https://blog.birchwoodfp.com/socially-responsible-investing)
- [**](https://pinterest.com/pin/create/button/?url=https://blog.birchwoodfp.com/socially-responsible-investing&media=https://cdn2.hubspot.net/hubfs/3811900/AdobeStock_259529026-1.jpeg)
- [**](mailto:?body=https://blog.birchwoodfp.com/socially-responsible-investing)
# Does It Work? Myth-Busting and Fact-Finding Socially Responsible Investing
[Kay Kramer](https://blog.birchwoodfp.com/author/kay-kramer-cfp)
May 15, 2019 9:21:25 AM
I have been interested and involved in [Sustainable, Responsible, Impact investing (SRI)](https://info.birchwoodfp.com/sri) for most of my financial planning career. As a member of the USSIF (Forum for Sustainable and Responsible Investments) for over 28 years, I have seen the industry change significantly as well as an increase of interest from clients to learn more.
Over the years, I’ve heard a lot of misinformation about what Sustainable Investing is and isn’t. Over time, I’ve devoted time to discussing what SRI is through various articles like [Understanding the Different SRI Investing Strategies](https://blog.birchwoodfp.com/sri-investing) and [A Guide to Socially Responsible and Gender Lens Investing](https://blog.birchwoodfp.com/gender-lens-investing).
Now, I’d like to discuss some common myths we hear about SRI.
## **Investors Are Not Interested**
While it’s been widely believed that millennials and women have a certain reputation for being most interested in investments that also do good for the world, a recent survey found that overall 72 percent of the United States population expressed at least a moderate interest in sustainable investing(1). According to the [US SIF Foundation](https://www.ussif.org/sribasics), as of year-end 2017, more than one out of every four dollars under professional management was invested according to SRI strategies.
## **SRI Means Poor Performance**
An ever-growing body of research suggests a strong association between responsible business management and positive financial performance. For example, Morningstar research found that the distribution of star ratings among sustainable investing funds skews in a positive direction, suggesting better risk-adjusted performance than their peers(2).
Researchers at the University of Oxford analyzed 200 studies, reports, and articles on sustainability. Based on their research, they found that on a firm level:
- 90% of the studies showed that sound sustainability standards lower the cost of capital in companies(3).
- 88% of the research showed that solid ESG practices result in better operational performance(3).
- 80% of the studies showed that good sustainability practices positively influence stock prices(3).
Lastly, a Morgan Stanley study of US-domiciled mutual funds and Separately Managed Accounts (SMAs) concluded that sustainable investments usually met and often exceeded the performance of comparable traditional investments, both on an absolute and also risk-adjusted basis(4).
## **Investors that Prioritize Sustainable Strategies have an Extremely Limited Investment Universe**
If someone were interested in SRI/ESG investing, the choices available to them today far outweigh the offerings even just five years ago. Before, in the 1980s and 1990s, investors only had a handful of SRI/ESG funds to choose from. Today, investors can pick from hundreds of SRI/ESG mutual funds and exchange-traded funds (ETFs). Furthermore, nearly all equity asset classes are represented, with offerings in all U.S. capitalization sizes. SRI/ESG investments are also available to those who are interested in investing internationally, both in developed economies and emerging markets. It is important to note that the offerings within fixed income securities are not quite as extensive as they are for equities but this is an area that is developing rapidly.
## **It Doesn’t Make Any Difference**.
As of November 2018, 78% of the companies in the S & P 500 index have corporate sustainability policies or issue corporate sustainability reports(5). This is a huge change from the 1990s when these reports started to be issued. Shareholder advocacy and engagement, resolutions and proxy voting, all can lead to constructive dialogue with a company to improve its ESG practices.
## **There’s only one way to do SRI.**
Every person will define what issues are important to them, so there is no one definition of what SRI means. For some, it means focusing on negative screens, for others focusing on gender lens only, for others it may be climate change. There is no one size fits all!** **
**Sources:**
**1 Source: **“The True Faces of Sustainable Investing: Busting Industry Myths Around ESG”, Morningstar, 2018
**2 Source: **“Sustainable Investing Research Suggest No Performance Penalty”, Morningstar, November 2016
**3 Source:** “ESG in Focus: Can ESG Enhance Returns?”, OppenheimerFunds, November 27, 2017
**4 Source: **“Sustainable Reality: Understanding the Performance of Sustainable Investment Strategies”, Morgan Stanley Institute for Sustainable Investing, March 2015
**5 Source:** “S&P 500 Firms Expand Sustainability Data in Financial Fillings, But are Slow to Adopt Fully Integrated Reporting”, IRRC Institute, November 14, 2018
[](https://cta-redirect.hubspot.com/cta/redirect/3811900/42c108da-3426-4cf9-aed1-99f16e8f78ae)
Topics: [Socially Responsible Investing (SRI)](https://blog.birchwoodfp.com/topic/socially-responsible-investing-sri)
*Investment Advisory services offered through Birchwood Financial Partners, Inc. an SEC Registered Investment Advisor.*
*All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Opinions expressed herein are solely those of Birchwood Financial Partners, Inc., and our editorial staff. Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual adviser or qualified professional before making any financial decisions. We are not affiliated with or endorsed by the Social Security Administration or any government agency. The inclusion of any link is not an endorsement of any products or services by Birchwood Financial Partners. All links have been provided only as a convenience.*
### Search Our Blog
### Posts by Tag
- [Investment Management (50)](https://blog.birchwoodfp.com/tag/investment-management)
- [Retirement (50)](https://blog.birchwoodfp.com/tag/retirement)
- [Suddenly Single (39)](https://blog.birchwoodfp.com/tag/suddenly-single)
- [Cash Flow and Budgeting (36)](https://blog.birchwoodfp.com/tag/cash-flow-and-budgeting)
- [Estate & Legacy Planning (35)](https://blog.birchwoodfp.com/tag/estate-legacy-planning)
- [Market Insight (35)](https://blog.birchwoodfp.com/tag/market-insight)
- [Bridget Handke (29)](https://blog.birchwoodfp.com/tag/bridget-handke)
- [Dana Brewer (25)](https://blog.birchwoodfp.com/tag/dana-brewer)
- [Taxes (25)](https://blog.birchwoodfp.com/tag/taxes)
- [Damian Winther (20)](https://blog.birchwoodfp.com/tag/damian-winther)
- [Rachel Infante (18)](https://blog.birchwoodfp.com/tag/rachel-infante)
- [Socially Responsible Investing (SRI) (17)](https://blog.birchwoodfp.com/tag/socially-responsible-investing-sri)
- [Steve Dixon (14)](https://blog.birchwoodfp.com/tag/steve-dixon)
- [Charitable Giving (13)](https://blog.birchwoodfp.com/tag/charitable-giving)
- [Kimmie Andrews (12)](https://blog.birchwoodfp.com/tag/kimmie-andrews)
- [Education Planning (11)](https://blog.birchwoodfp.com/tag/education-planning)
- [Kay Kramer (5)](https://blog.birchwoodfp.com/tag/kay-kramer)
- [Cybersecurity (3)](https://blog.birchwoodfp.com/tag/cybersecurity)
- [Brayden Kelly (1)](https://blog.birchwoodfp.com/tag/brayden-kelly)
- [Growing Wealth (1)](https://blog.birchwoodfp.com/tag/growing-wealth)
- [Kayla Berceau (1)](https://blog.birchwoodfp.com/tag/kayla-berceau)
[See all](https://blog.birchwoodfp.com/socially-responsible-investing#)
[](https://www.birchwoodfp.com/)
[Home](https://www.birchwoodfp.com)
[WHO WE ARE](https://www.birchwoodfp.com/about)
[WHO WE SERVE](https://www.birchwoodfp.com/who-we-serve)
[WHAT WE PROVIDE](https://www.birchwoodfp.com/solutions)
[DOWNLOADABLE GUIDES](https://info.birchwoodfp.com/resources)
[blog](https://blog.birchwoodfp.com)
[Contact Us ](https://www.birchwoodfp.com/contact-us)
[Form CRS](https://info.birchwoodfp.com/form-crs)
[Forms ADV](https://info.birchwoodfp.com/adv)
[PRIVACY POLICY](https://info.birchwoodfp.com/privacy-policy)
[5601 Green Valley Dr., Ste 600](https://maps.app.goo.gl/EbBNRPP4sFfkeYZd8)
[Bloomington, MN 55437](https://maps.app.goo.gl/EbBNRPP4sFfkeYZd8)
Phone: [952-885-9088](tel:19528859088)
Email: [info@birchwoodfp.com](mailto:info@birchwoodfp.com)
All written content on this site is for information purposes only. Opinions expressed herein are solely those of Birchwood Financial Partners, Inc. and our editorial staff. Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual adviser prior to implementation. Advisory services are offered by Birchwood Financial Partners, Inc., an SEC Registered Investment Advisor. Birchwood Financial Partners, Inc. is not affiliated with or endorsed by the Social Security Administration or any government agency, and is not engaged in the practice of law. The presence of this web site shall in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the States of AZ, CA, FL, IA, IL, MN, NC, NY, TX, WI or where otherwise legally permitted. All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions.
Images and photographs are included for the sole purpose of visually enhancing the website. None of them are photographs of current or former Clients. They should not be construed as an endorsement or testimonial from any of the persons in the photograph. The inclusion of any link is not an endorsement of any products or services by Birchwood Financial Partners, Inc. All links have been provided only as a convenience.
© 2026 Birchwood Financial Partners. All Rights Reserved.
[Disclaimer ](https://www.birchwoodfp.com/disclaimer)[Legal, privacy, copyright and trademark information](https://www.birchwoodfp.com/legal-privacy-copyright-and-trademark-information)
```json
{
"@context" : "https://schema.org",
"@type" : "BlogPosting",
"author" : {
"@type" : "Person",
"name" : "Kay Kramer",
"url" : "https://blog.birchwoodfp.com/author/kay-kramer-cfp"
},
"dateModified" : "2020-03-18T22:14:46.514Z",
"datePublished" : "2019-05-15T14:21:25.000Z",
"headline" : "Does It Work? Myth-Busting and Fact-Finding Socially Responsible Investing",
"image" : [ "https://blog.birchwoodfp.com/hubfs/AdobeStock_259529026-1.jpeg" ],
"mainEntityOfPage" : {
"@id" : "https://blog.birchwoodfp.com/socially-responsible-investing",
"@type" : "WebPage"
},
"publisher" : {
"@type" : "Organization",
"logo" : {
"@type" : "ImageObject",
"url" : "https://blog.birchwoodfp.com/hubfs/new%20logo%201%20b.jpg"
},
"name" : "Birchwood Financial Partners"
}
}
```