Socially Responsible Investing Through Voluntary Codes

Can socially conscious investors help abate climate change and other environmental problems and thereby steer the economy towards a more ecologically sustainable future? This chapter examines the role of voluntary codes in promoting and governing sustainable and responsible investment or socially responsible investing (SRI). In examining the design, goals and implementation of voluntary codes, it focuses on the identity of the responsible parties; this is a crucial determinant for a code's quality as a mechanism of governance of the financial market. The chapter concludes with some remarks about the role of such codes in the future governance of financial markets and promotion of SRI.