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Interest in ethical investment on the rise
Thirty-five per cent of investors believe they should act ethically although they have yet to enter the ethical investment market, research has showed.
Research from Ecclesiastical Investment Management has found investors would consider ethical investments with the right education and advice. Over six in 10 of the non-ethical investors said they would be more likely to consider ethical investments if their IFA discussed it with them.
The research also showed 24 per cent of investors would buy ethical products for health reasons and 29 per cent would buy for the ‘feel good’ factor.
Sue Round, head of investments with Ecclesiastical Investment Management, said: “The research shows consumers are happy to buy ethically or organically in many areas of their life, whether it be for health or feel-good reasons.
“However, when it comes to investing many are still dismissing the option of ethical investing, or are simply not fully aware of the options that are available.”
Ms Round added: “There is a range of financial products available, which can ensure people have the option to invest in a responsible way. It seems consumers might just need a nudge in the right direction to do so.”
According to EIRIS, a provider of independent research on the environmental, social, governance (ESG) and ethical performance of companies, approximately £11.3bn was invested in the UK’s green and ethical retail funds in 2011 compared to £4bn in 2001.
Jeremy Newbegin, director of The Ethical Partnership’s, said: “I believe many people think to invest ethically you have to be prepared to make less profit. Not necessarily so.
“Many people make the mistake of thinking ethical investment is very black and white. It is not. What is ethical to one may not be to another.”
Mr Newbegin added: “My hope is that our recent experience of greed, and deceit from our bankers, politicians, press, and police, will give us an appetite for ethics.”
