Isa investments have gained an increasingly ethical flavour as more savers have demanded their investments have a positive effect on society and the environment, research has shown.
According to data from ethical organisation Triodos Bank, more than 63 per cent of Isa investors would like their savings to have a positive impact on organisations and sectors that match their values.
Moreover, exactly half of the 2005 UK adults polled said they would switch providers to make a positive difference with their savings.
Huw Davies, head of retail banking at Triodos Bank UK, said: "Many people feel they are being kept in the dark about how their money is used by banks and want greater transparency.
"They want to feel proud that, while their money is growing, they are helping organisations that are making a positive difference to people and the planet."
Also revealed by the study was the fact nearly two thirds (62 per cent) of respondents believed that if more people chose to save in socially responsible and sustainable savings products, it would have a positive impact on people, society and the environment.
Yet 75 per cent said they had " no idea" where their bank or financial provider lent their money.
| Top things investors want to invest in | ||
| Rank | Concern | % |
| 1 | Renewable energy | 47 |
| 2 | Energy efficiency | 41 |
| 3 | Social housing | 41 |
| 4 | Community/society groups | 28 |
| 5 | Human rights and labour rights | 28 |
| 6 | Urban regeneration | 24 |
| 7 | Sustainable Business | 23 |
Mr Davies added: "Our mission is to make money work for positive social and environmental change."
Latest data from the government suggests 85 per cent of Isas are still invested in cash; in 2016, more than £80bn was invested in the tax-efficient savings wrapper alone.
Advisory firm Castlefield has long advocated the use of ethical investments within different tax wrappers. In 2015 it carried out a survey showing the desire of investors to put their money to a "good" use within investment funds.
John Ditchfield, partner at Castlefield, said: "We understand the desire to invest in the right funds but there is more to it than just looking at financial performance.
"You need to know and understand your investment and your investment choices. A specialist ethical adviser can help you to consider your values, look at your risk profile and recommend funds that suit your particular needs."
simoney.kyriakou@ft.com
