# Socially Responsible Investing

*ESG & Sustainable Finance — Finicade finance glossary*

SRI excludes companies or sectors an investor objects to — tobacco, weapons, fossil fuels, gambling. It's the oldest form of values-based investing, with roots in religious funds centuries old. Its financial effect is a tracking error against the broad market that can run in either direction, and its real-world effect depends on whether exclusion actually raises the excluded firms' cost of capital.

**Also known as:** SRI, ethical investing, negative screening, exclusion list

**Related terms:** [Sustainable Investing](https://finicade.com/glossary/sustainable-investing), [Divestment](https://finicade.com/glossary/divestment), [Impact Investing](https://finicade.com/glossary/impact-investing), [ESG](https://finicade.com/glossary/esg), [Tracking Error](https://finicade.com/glossary/tracking-error)

Source: https://finicade.com/glossary/socially-responsible-investing