Socially Responsible Investing (SRI)
Socially Responsible Investing (SRI) is an investment strategy that seeks to achieve optimal social as well as financial returns. Increasingly, sustainable resource management is included as a facet of SRI, rendering the concept readily-applicable to forest investing. IWC believes that SRI does not require a compromise at the expense of healthy returns on investment. On the contrary, the principles of SRI guide investors toward long term, low risk, financial returns. SRI is, in essence, a win-win proposition.
IWC considers the principles of SRI in each forest investment through the application of the IWC SRI Guidelines. The Guidelines are an assessment tool that helps IWC to avoid investments that do not reflect the social and environmental values of IWC and our clients. This allows IWC to assure clients and stakeholders that the company will not be involved in activities that compromise sustainability, including:
- Clearing of primary forest, including rainforest, for plantation development
- Displacement of indigenous peoples
- The use of child or forced labor
- Illegal logging.
IWC acknowledges the value of third party verification of any social or environmental initiative and the company have committed to a policy on forest certification. The policy states that IWC will work toward attaining the most appropriate, recognized third-party forest certification for all forest investments and forestry activity under advice or management by IWC.
IWC recognizes three existing forest certification schemes that have emerged as the most well-developed, commonly-used and well-accepted among stakeholder groups. These schemes are:
- The Sustainable Forest Initiative (SFI)
- Forest Stewardship Council (FSC)
- Program for the Endorsement of Forest Certification Schemes (PEFC).
Concepts of social and environmental sustainability are dynamic.
As our understanding of how changes to the natural environment and the evolution of social values influence the definition of sustainability, IWC fully expects that the approach to maintaining social and environmental sustainability will evolve. IWC standards for SRI will evolve in a corresponding manner.