SRI logo demands high standards

The Ethical Investment Association (EIA) has launched a certification program for providers of sustainable responsible investment (SRI) and ethical investment products and services, which it hopes will promote consistency and make it easier for consumers to find, compare and contrast suppliers to this growing segment of the industry.

EIA executive director Louise O’Halloran said the SRI Symbol program had been developed in response to investor requests for help in making informed choices about sustainable and ethical investment opportunities.

“With over $4 billion now invested across 100 different SRI products it became clear that investors needed help in comparing apples with apples.”

O’Halloran said the SRI Symbol was awarded to suppliers in four license categories:

~ fund managers;

~ superannuation funds;

~ dealer groups; and

~ financial advisers.

To qualify to use the SRI Symbol, she explained applicants would have to complete a questionnaire which asked for evidence of how they provided consumers with sustainable and ethical products and services.

For example, a financial adviser wishing to apply to use the SRI Symbol would have to show they included questions about SRI in their fact finds and offered ethical and sustainable investment products, amongst other criteria.

The EIA assesses applications for eligibility, with fund managers’ applications being verified by global chartered accounting firm Grant Thornton.

Successful applicants will then be able to display the SRI Symbol on business communications, product disclosure statements, prospectuses, and supporting marketing collateral and websites.

O’Halloran said the SRI Symbol certified a licensee has adopted the education and disclosure practices required for their category. Investors would also have access to information the licensee has supplied to EIA during the certification process, which would provide greater transparency for consumers.

She said financial advisers would have to renew their certification annually, providing evidence of ongoing training and adherence to SRI principles. Licensees in other categories were only required to reapply every two years.