ESG and SRI: Understanding the Differences and Adopting a Responsible Investment Strategy
The article distinguishes between ESG (Environmental, Social, Governance) criteria, a broad and somewhat unstandardized framework for assessing non-financial factors in investments, and SRI (Socially Responsible Investment), specifically the French SRI Label. While ESG aims to evaluate long-term risks and opportunities, its lack of uniformity can lead to confusion. The SRI Label was created to standardize ESG integration but faced criticism for weak requirements. A 2025 reform strengthened it with stricter exclusions and demands. The article suggests that traditional ESG approaches lack quantifiable real-world impact, particularly on climate change, and introduces Homaio's alternative: investing directly in European emission allowances for a more tangible environmental effect.