Britons thinking green

Category: Investments
Date: 6/2/2009

Britons continue to rate the importance of ethical investments very highly, despite the prospect of lower returns.

Nearly three quarters of UK citizens agree that it is important that social, ethical and environmental issues are taken seriously by businesses, a study conducted by Friends Provident has revealed.

Figures also showed that 54 per cent of consumers and investors think investing ethically is more significant now than it was 25 years ago.

Some of the top concerns for people included energy conservation and climate change. Pollution of the land, sea and air was considered to be the problem that most troubled people, with 35 per cent of respondents pinpointing it.

It is a further boost for ethically responsible businesses and investors, following recent research by The Co-operative Investments that found 18 per cent more people intend to invest ethically this year.

Furthermore, retail inflow into ethical funds has exceeded outflow in 14 consecutive months since last February, according to the Investment Management Association.

"Without a doubt, ethical issues are on Brits' minds more than ever," said Trevor Matthews, chief executive officer at Friends Provident.

"Many people take an ethical approach to their finances by avoiding investing in companies that are not socially responsible. We are seeing this trend continue into people's investing habits with over half prepared to accept a lower return on their investments if it means investing in companies that are socially responsible.

"People are now investing with care and realising you don't have to compromise on your principles to make a profit."