In January, Financial Advisor launched a magazine called FA Green. This new print and web journal analyzes sustainability issues for FA's target audience of "financial planners, registered investment advisors and independent broker-dealers."

This is good news for the practice of sustainable and socially responsible investment (SRI). While sites such as Social Funds and JustMeans serve investors and consumers who are concerned with environmental, social and governance (ESG) issues, FA Green can help familiarize mainstream financial professionals with ESG concerns.

Towards this goal, FA Green editor Dorothy Hinchcliff and other contributors tackle some perennial questions and misconceptions about sustainable investing/SRI. Jeff Schlegel's "Investing: A Look at Performance," for example, considers the supposed performance penalties of an ESG-screened portfolio:

"Critics say it puts investors at a disadvantage to exclude certain sectors such as tobacco, booze and gambling (the so-called sin stocks), or any other businesses with questionable environmental, social or governance records. Taking these companies out of the game limits investment choices, they contend. "But the data suggest that SRI isn't necessarily the portfolio killjoy its detractors say it is…. "…A collaborative report published in October 2007 by the United Nations Environment Programme Finance Initiative and the Mercer consulting group reviewed 20 academic studies on the impact of environmental, social and governance (ESG) factors on portfolio performance. The result: Half of them found a positive relationship between ESG factors and investment returns, while seven studies found a neutral effect and three found a negative correlation. "In June 2007, Goldman Sachs launched its GS Sustain focus list of 96 companies…that satisfy Goldman's own list of ESG requirements. … In a June 2008 report, Goldman said the list had outperformed the MSCI World Index by 20.8% since its launch. The report noted Goldman found 'a positive relationship between ESG, industry positioning and return on capital over time'…"

For more about FA Green, see editor Dorothy Hinchcliff's blog.

Also see these KLD Blog articles that discuss the relationship between ESG-driven investing and performance:

A Review of "Sustainable Investing" by Cary Krosinsky and Nick Robins

The Wages of Social Responsibility: 2008 Moskowitz Prize-Winning Research Paper Studies Long-term SRI Performance

A Review of Scott J. Budde's "Compelling Returns: A Practical Guide to Socially Responsible Investing"