"I also suspect that, following the clattering that the fund management industry got in the recent FCA asset management review, they are looking for new ways to demonstrate their value.
"They have received heavy criticism for not creating value for investors relative to index benchmarks, net of fees. Focusing on other definitions of added value that are less easily measured and compared is a good strategy."
Jeremy Edwards, partner at Martin-Redman Partners, added screening funds can present a hurdle for IFAs wanting to help clients invest ethically.
He said: "I have a lot of sympathy with investors that want to do things ethically, but screening funds is expensive and there are few economies of scale. Our usual DFM has launched a responsibly-managed portfolio range which attempts to target ethical and sustainable investments, but it is a compromise. This is unlikely to satisfy zealots for ethics or performance."