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SIO launches consultation on national SRI Standards
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The Social Investment Organization has launched a national consultation on a Statement of Standards and Principles for the socially responsible investment industry in Canada. On October 6, SIO issued a concept paper detailing possible approaches to an SRI Statement of Standards and Principles. The SIO Board initiated the process to develop this paper last year with approval of its new membership strategy. “The SIO believes there is growing demand for a mechanism to provide investor assurance on how SRI fund companies are meeting SRI guidelines,” states the concept paper. While the paper calls for establishment of a minimum SRI standard, it also recognizes the diversity of approaches to SRI in Canada and suggests ways that it can report on these diverse approaches to assist investors in choosing between SRI providers. “As an industry that demands high standards of transparency and accountability from the companies in which it invests, it is incumbent on the SRI industry to also demonstrate a high standard of ethical conduct. This means that SRI providers must be willing to demonstrate how they meet the SRI guidelines set out in their prospectuses and marketing materials. SRI product and service providers must show their investors and the investing public that they can meet the SRI guidelines that set them apart from the conventional investment industry.” The concept paper discusses issues of due diligence, shareholder advocacy, labour-sponsored SRI funds and community investment. It lays out some possible approaches on the issue of SRI verification. Once the Statement of Standards and Principles is in place, the SIO intends to require its members to adhere to the Statement as a condition of SIO membership. Non-members will not be invited to sign on to the Standard. Members and non-members are invited to participate in the consultation by writing to the SIO. For more information, visit the SRI Standards page here.
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