According to Mr Adams, ethical investors still face a restricted marketplace and having a diversified portfolio becomes more difficult.
He added: "The main factor with ethical investing is that it’s not up to the investment manager or adviser to say what’s ethical – it’s a morality issue that’s down to the investor themselves.
"What one investor may deem ethical another may not, so it takes careful work with an individual to build a portfolio that’s truly ethical for them."
Find out more
To understand how investors can benefit from integrating CSR into their portfolios, read FTAdviser's CPD guide, which qualifies for an indicative 60 minutes' worth of CPD.