Interest in ethical investment tempered by scepticism

November 10th, 2009 by Gareth Flanagan

Seventy per cent of people in Great Britain consider their outlook and lifestyle to be green and ethical, and 49% of people with savings and investments would like to make a difference with their money by making an ethical investment.

These are the findings of the UK Sustainable Investment and Finance Association (UKSIF) published this week for National Ethical Investment Week.

However, investors remain sceptical on the subject of how ethical so-called ethical investments really are, with 44% claiming that the financial services industry needs to provide clearer evidence of the green impacts of ethical funds.

As a result, only 8% of UK investors currently hold an ethical investment or savings product.

Those surveyed* favour using their investment funds to make a positive impact close to home, with 54% of respondents claiming renewable energy and 52% opting for waste reduction as their priority.

Independent ethical research specialist EIRiS reveals there is currently £7bn invested in ethical funds in the UK, compared to £1.5bn ten years ago.

Meanwhile the Investment Management Association noted that the ethical sector is showing explosive growth, with a threefold increase in quarterly net sales of ethical funds, to £59m.

Interest in ethical issues and investments is expected to gather further momentum, with the approach of the Copenhagen Climate Change Summit next month.

*2092 UK adults surveyed by YouGov plc for UKSIF, October 2009

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