INVESTMENT in Britain's green and ethical funds has almost
trebled in the past decade, research suggests.
To mark the launch of this week's National Ethical Investment
Week (NEIW) (Feature, 12 October), Eiris,
specialists in sustainable-investment research, published figures
that showed that about £11 billion had been invested in 80 UK-based
green and ethical retail funds, compared with £4 billion ten years
ago. The company's head of communications, Mark Robertson, said
that the increase reflected "consumer interest in issues like
climate change, fair trade, human rights, and, more recently,
ethical pay".
A survey of 2183 people, of which 1291 have investments,
conducted by YouGov this month, found that 24 per cent would be
interested in a green bank account, compared with just two per cent
last year. Forty-five per cent of those with savings or investments
said that they wanted at least some of those to take ethical
considerations into account.
"With the breakdown in trust, and continuing problems with the
banking sector and other sectors, people are thinking about profit
with principles," Neville White, an investment analyst for
Ecclesiastical Investment Management, said on Tuesday. "You don't
neccessarily have to sacrifice return in order to invest
ethically."
Research from EIRIS, published on Wednesday of last week,
suggests that investment in emerging markets has increased by
almost 30 per cent since 2009, posing challenges for investors
concerned about the environment.
Although stock exchanges in Brazil and South Africa have
"leapfrogged" those in developed countries by requiring high levels
of disclosure, poor levels of disclosure remain "the number-one
challenge" for investors interested in these markets. A report
produced by the company suggested that most companies from Brazil,
China, India, Russia, and South Africa were "not doing enough" to
mitigate this.
A financial adviser, Jeremy Newbegin, said on Tuesday that
"people may consider ethical investment, but unless they see proof
of good performance I think that they will be put off." Independent
financial advisers are accustomed to choosing from 3000 funds, he
said, compared with about 130 ethical ones. The number of funds was
increasing, however, and, "if you are going to be consistent, then
money should be aligned with your faith."
NEIW has produced an action guide for churches, sponsored by
CCLA, a specialist investment manager for charities, churches, and
local authorities, and produced by the UK Sustainable Investment
and Finance Association in association with the Ecumenical Council
for Corporate Responsibility.
www.neiw.org/church-guide