SRI is an investment tool that considers environmental, social and corporate governance criteria and it helps SMEs to implement CSR in their business core.
SRI is an investment tool that considers environmental, social and corporate governance (ESG) criteria. The purpose of the tool is to enable asset owners/ investment managers to undertake a basic assessment of company’s environmental, social and governance (ESG) practices, and to thereby enable them to consider these extra‐financial factors as part of investment decisions to generate long-term competitive financial returns and positive societal impacts.
The SRI Tool analyses companies ESG management approaches and performance across 6 different domains that is Governance and Transparency, Environment, Sector Sustainability, Human, Health and Safety Management, Supply Chain Management and Community Engagement. The tool is entirely interview-based. The final score indicates the level of the company’s sustainability performance.

Resources needed

The tool is already ready and has been tested therefore it can be immediately used. Training will be needed for the person to use the tool even though a practical guide for its use exist.

Evidence of success

The SRI tool has been piloting tested to 5 companies. After that 42 big companies started to use the tool. The benefits from using the SRI tool are the following:
1. Companies with sound social and environmental policies can reduce costs from reducing energy consumption, reduced turnover of employees, greater access to international markets.
2. There is increasing evidence that socially and environmentally responsible companies perform better in the long-term.

Difficulties encountered

The tool is easy to apply by non-sustainability experts but training and discussion on the questions is needed for ensuring maximum accuracy.

Potential for learning or transfer

The tool can be considered as a part of the objectives that shape the European Union's CSR policy, encouraging investors and businesses to contribute to sustainable development through socially responsible investment decision. Socially conscious investors may assume a more holistic view of a company when making investment decisions, looking at how it serves its stakeholders, a rubric under which are subsumed not only shareholders, but also creditors, management, employees, the community, customers and suppliers. Within this context, socially responsible investment seeks to maximize welfare while earning a return on one's investment that is consistent with the investor's goals.

Please login to see the expert opinion of this good practice.

Project
Main institution
Cyprus Chamber of Commerce and Industry
Location
Κύπρος, Cyprus (Κυπρος)
Start Date
April 2015
End Date
February 2017

Contact

Eudokia Balamou Please login to contact the author.

Good Practices being followed by

Eudokia Balamou

Larnaca and Famagusta Districts Development Agency