Many investors are becoming more socially aware and want investments that reflect their core beliefs. Humanitarian, ethical, social and political concerns are just a few examples of what investors can want to dictate where their advisers put their cash.

For this growing segment of investment needs, socially responsible investing (SRI) recognises that corporate responsibility and societal concerns are valid parts of investment decisions.

There also a growing sense that given the resource and energy needs of the world, government measures and natural evolution of key industries will make what are now considered niche ethical investments the major money-makers of the future.

Socially responsible investing considers both the investor’s financial needs and an investment’s impact on society but can vary from funds that simply exclude some of the world’s worst polluters to those that pledge to invest for ‘impact’.

This guide will explain the different approaches to socially responsible investing, what kind of returns investors can expect and how to make sure the fund you recommend meets your client’s ethical requirements.

Contributors to the guide were: Simon Howard, chief executive of the UK Sustainable Finance and Investment Association; Charlie Thomas, manager of the Jupiter Ecology fund; Peter Michaelis, head of equities at Alliance Trust and head of sustainable and responsible investment at Alliance Trust Investments; Neil Cowell, head of UK retail sales for Vanguard; and Jamie Sutton, director of Premier.

This guide is sponsored by Alliance Trust Investments. All editorial is independent.