Green and ethical investments look at the wider impact of investing on society and the environment when seeking financial returns. They take into account social or environmental considerations in addition to financial criteria.
You may sometimes hear the terms ‘responsible investment’ or ‘socially responsible investment’ used in place of ‘green and ethical’, but they essentially mean the same thing.
Just as you can now choose from a range of green or ethically produced goods in your local supermarket, you can also choose financial products that have positive benefits for the environment and society.
Green and ethical investments are a powerful tool that allows you to have a positive impact on the world around you. Green and ethical investments may promote greater corporate responsibility, invest in solutions to 21st-century problems, or contribute to cleaner, greener profits.
To assist with your decision-making, you may find it helpful to speak to your financial adviser. If you do not currently have an adviser, it makes sense to contact one who specialises in green and ethical investment. Financial advisers with a particular interest in green and ethical investment funds are likely to belong to the Ethical Investment Association (EIA).
Click here to search for a financial adviser who is a member of the EIA.
YourEthicalMoney.org provides independent, non-profit information on green and ethical money, including banking, pensions, and insurance and investments.
Blue and Green Investor is primarily aimed at UK investors and provides a point of reference for investment performance, news, thought leadership and discussion on investment funds within the thematic, environmental and ethical fund industry.
sriServices support financial advisers who offer advice on ethical investment and SRI. They run a database tool which matches investors’ ethical aims to the different styles of ethical investment and SRI that are available. If you would like to find out which styles best suit your personal views you complete the online ‘SRI StyleFinder ‘fact find questionnaire here.
Which? Ethical Investments Guide gives some basic information on the different types of ethical investment available, advice on choosing an ethical fund and sources of further information and advice.
For a more in-depth treatment, we suggest Green Money: How to save and invest ethically, by financial journalist Sarah Pennells.