The majority of investors are still in the dark about how ethical their portfolios are, Huw Davies, head of personal banking at Triodos Bank, has said.
Speaking ahead of Good Money Week in 19-25 October, Mr Davies said too many investors could be putting their money into things that go directly against their personal beliefs because of a lack of awareness.
He said: “Ethical investment is increasingly becoming a part of mainstream investment, especially as people start to realise its value, not just from an ethical point of view but also in terms of performance.”
A recent poll from Triodos on consumer awareness has found that 64 per cent of investors are in the dark about how ethical their investments are. Some 74 per cent wanted their investment products or pensions to be invested more in environmental and social sectors.
Investors also said they wanted their financial advisers to advise on green and ethical alternatives, with 58 per cent wanting their IFA to cover this part of the market.
Do you want IFAs to recommend ethical as well as mainstream investments?
| Total | Men | Women | 18-34 | 35-54 | 55+ |
Yes | 58 | 55 | 61 | 75 | 58 | 51 |
No | 15 | 19 | 10 | 10 | 16 | 17 |
Don’t know/care | 27 | 25 | 29 | 15 | 27 | 32 |
Source: Triodos Bank
His comments came as Triodos Bank launched a £5m share issue for listed company Triodos Renewables, with a minimum investment of £50. The money raised will be used to buy and develop more renewable energy projects.
Adviser view
John Ditchfield, director of Wiltshire-based Barchester Green Investments and chairman of the Ethical Investment Association, said: “Mainstream advisers are missing a significant opportunity because, as Triodos Bank’s research shows, a large portion of the investing public are interested in ethical investment, but advisers are not giving enough attention to the sector.
“There needs to be more information in the public domain, so that investors know to ask about ethical investment, and advisers have a greater understanding of the wide range of ethical and responsible investment products on offer.”
