IFAs still divided about ethics of nuclear investment

New research from Ecclesiastical Investment Management on how IFAs consider nuclear power to be an ethical investment discovered that 66 per cent do not feel there is sufficient information available to make that sort of decision on behalf of their clients.

The survey intended to balance IFAs' concerns surrounding the relative safety of nuclear power, including the threats of terrorism and decommissioning risks or costs, with the UK's need for energy and hitting the government's carbon emission targets in an effort to reduce climate change.

The results found that over half of the IFAs polled had a positive attitude towards nuclear power, with 58 per cent who felt that it was possible to be socially responsible when investing in the nuclear industry.

However, over a quarter (28 per cent) still believed that investments in nuclear power cannot be considered to be socially responsible.

Despite this, just over half of those interviewed (51 per cent) believe that nuclear power will be the most important renewable energy source in five to 10 years time.

Ketan Patel, senior SRI analyst at Ecclesiastical, said: "Opinion on nuclear power is still a divisive issue with almost 60 per cent of IFAs having a positive attitude towards this energy source and many seeing it as increasingly the only viable energy source option left.

"However, there are still over 28 per cent of IFAs who believe that investment in nuclear power cannot be socially responsible while a further 12 per cent are undecided.

"It is also interesting to note that the philosophy of an SRI fund is the most important factor taken into consideration by IFAs when selecting a fund (72 per cent).

"It is surveys such as this that enable us to ensure the screening criteria of our funds meet the standards and beliefs of both intermediaries and ultimately our investors."