Focus: SRI: F&C: Speaking up for corporate governance and sustainability

A further evolution of ethical funds is that they are no longer confined to the developed world markets of the G7 nations. Economic activity has clearly shifted east and south, while the supply of as-yet undeveloped natural resources is increasingly to be found in less developed markets. In addition to western companies becoming increasingly global, ethical funds themselves are moving beyond their old familiar territory and expanding into emerging markets, where local companies present both attractive investment opportunities for generating returns - but also ethical, social and ecological challenges to consider.

At the dawn of the 21st century, investors face the twin challenges of climbing their way out of the credit crisis and confronting new existential threats, such as energy security, climate change, population explosion, water stress and so on.

As shoppers, parents, future retirees and citizens, investors have the opportunity to shape their future and drive the emergence of innovative approaches to investment.

Businesses and investors alike are increasingly coming to recognise that a sound approach to ethics and sustainability makes good business sense, and the steady growth and ever-greater sophistication of what was once simply called "ethical investment" practice is a testimony to that vital link.