“It’s more in line with mid to small cap indices,” he said.
“What you have to realise is that performance to date is historic. And to date, the environment that businesses have operated in, [FTSE 100] companies haven’t been penalised for doing what they are doing [investing unethically].”
But he said this would change, and over the longer term there would be a pay-off for investing in more sustainable, ethical companies.
Alan Chan, a chartered financial planner with IFS Wealth & Pensions, agreed that investment returns in the long-term were not generally reduced by investing ethically.
However, he said volatility does increase, which can put some clients off.