What encompasses characteristics of socially responsible investing (SRI)?

Socially Responsible Investing (SRI) is characterized by its focus on incorporating environmental, social, and governance (ESG) factors into investment decisions, alongside traditional financial analysis. The correct answer emphasizes that SRI strategies actively consider the impact of investments on society and the environment, rather than solely focusing on financial returns or disregarding ethical implications.

By factoring in these considerations, investors who adopt SRI practices aim to support companies and projects that align with their values, potentially leading to a positive social impact while also pursuing financial returns. This dual focus distinguishes SRI from traditional investment strategies that prioritize profits without acknowledging their broader implications.