Why are World Bank bonds considered “ethical” or “socially responsible” investments (SRI)?
Socially Responsible Investing (SRI) is one of many terms used to describe an investment strategy aiming to maximize social good and financial returns. Others include social, sustainable, ethical, and mission-based investing. The World Bank’s mission to fight poverty in a sustainable way, through education, health and environment, make IBRD bonds suitable for investors with such an investment strategy. The World Bank is a global development cooperative owned by 185 member countries. Its purpose is to help its members achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global problems in economic development and environmental sustainability, all with a view to overcoming poverty and improving standards of living for people worldwide. IBRD’s bonds finance projects that emphasize the need to (1) invest in people, particularly through strengthening basic health and education systems, (2) protect the environment
