Following Ethical Investment Week (8th - 14th Nov), ethical market research specialist Eiris has highlighted a number of new ethical funds offering positive ethical investment opportunities, rather than ones which simply avoid the ‘sin’ industries.
One product is a vaccine bond, issued this year by the International Finance Industry for Immunisation, which funds the purchase of vaccines for children around the globe, and vaccinates them for free.
Other new ethical investment options are available in the area of sustainable property, including eco-buildings and healthy low-energy offices, according to Eiris.
In order to provide the ethical funds sector with a roadmap to develop the sector further, Eiris has highlighted the principal barriers for consumers to holding an ethical investment as part of their financial planning.*
A new survey published today shows that a lack of knowledge and a lack of trust on the part of consumers is hampering the growth of the ethical investment funds sector.
In order to address these shortcomings, the industry must take account of the following issues:
- 35% of respondents would not buy ethical investment funds because they do not trust the claims of financial providers
- 46% of respondents said there was not sufficient information on how their ethical investment would make a visible difference in the world
- 27% of respondents said there is no external verification of the ethical claims such products make
In response to these concerns, Eiris will now work with product providers to build investor confidence by taking the following measures:
- To consider an ethical badge or mark showing independent verification of an ethical investment product
- To provide more information on where ethical investment funds invest
- To make alliances with strategic stakeholders such as charities to increase confidence
- To provide clear examples of how ethical investments can and do make a positive difference
*Source: What’s needed to mainstream green and ethical finance? Eiris, 17 November 2009. Report based on a survey by Ipsos Mori of 1,037 UK adults of which 96% are currently users of financial products and services.
