This manual deals with the basic concepts and functions of socially responsible investment (SRI). Socially responsible investment involves investments in companies based not only on financial criteria but also on environmental criteria, social criteria, and governance criteria (environmental, social, governance — ESG).

Because the concept of SRI is relatively new, it is referred to by many similar names: "ethical," "sustainable," "green." However, although the terminology is not always the same, the concept and goal of SRI are essentially the same.

This book is the first in the Greek language and refers to the introductory concepts of SRI and the triptych ESG, ecological leverage, the relationship between ESG activities and financial performance, and finally, the new forms of risks and the reasons why banks must consider ESG risk factors in banking lending.

The manual is aimed at undergraduate and graduate students of all disciplines, as well as corporate and financial institution executives.

Konstantinos Zopounidis is a Professor and Associate Dean of the School of Production Engineering and Management. He is also the Director of the Financial Management Systems, Data Analysis, and Forecasting Laboratories at the Technical University of Crete. Since 2012, he has been a Distinguished Research Professor at Audencia Business School (France).

Mariana Eskandar is a PhD candidate and a member of the Financial Engineering Laboratory at the School of Production Engineering and Management at the Technical University of Crete. There, she teaches as a Laboratory Assistant in the undergraduate course on Small and Medium Enterprises and Innovation, and in Financial Engineering Exercises at both undergraduate and graduate levels.