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Green light for ethical investments

Green light for ethical investments

Category: Investments

Updated: 15/10/2009
First Published: 15/10/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Interest in green and ethical investments appears to be growing, after it was revealed their performance was at least as good as that delivered by other investments.

According to research from Ethical Investment Research Services (EIRIS), 90% of wealth managers reported that their portfolios of responsible investments had been performing either the same or better than their other portfolios.

A charge often levelled at ethical investors is that they are effectively sacrificing profits for their principles; according to the research, this seems not to be the case.

The survey also found that the financial crisis had helped to heighten the awareness of environmental, social and governance issues amongst investors.

As a consequence, 30% of respondents said the crisis had led to them being more likely to offer responsible investments to their clients; 60% said they were just as likely.

Speaking to, Penny Shepherd MBE, chief executive at UKSIF (UK Sustainable Investment and Finance), said that investors choose green and ethical investments both for financial performance and because they want to make a difference with their money.

"Some people pick green and ethical investments just because this makes good financial sense in today's changing world. But more and more investors also want their investments to make a positive contribution to society and the environment."

As to whether ethical investments will continue to deliver the goods, she noted that a track record going back over 25 years had demonstrated that they can perform across a range of market conditions.

"Green and ethical investments may outperform non-ethical investments in the future because they address the implications for business of tomorrow's major social and environmental challenges, such as the impact of climate change or an ageing society," she added.

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