Environment tops ethical investment list
The number-one concern for ethical investors is the environment, new research reveals.
Standard Life and Standard Life Investments ethical fund range asked 18,000 investors what is most important to them when selecting an ethical fund.
And seven of the eight environmental issues presented to investors ranked among the top-12 most important issues overall, Standard Life reveals.
The clearing of tropical forests, human rights and the manufacture and supply of ozone-depleting chemicals were the top three most important issues.
Standard Life and Standard Life Investments ethical funds use the results of this survey in developing criteria for its ethical investment products.
In 2005, the amount of money held in ethical investments topped £10 billion.
John Pyburn, marketing director at financial services group Canada Life UK, explained last month that as awareness of environmental matters increases, the appetite for ethical funds has increased.
"There is growing demand for investment products which enable people to feel good about their decision to invest as well as have confidence in the performance," he explained.
And this appetite has been matched by performance.
"Traditionally ethical funds tended to be viewed with some scepticism. Sectors which perform well in times of poor stock market performance, such as oil and tobacco, would be excluded from these funds and thus restrict performance," Mr Pyburn said.
"This is no longer the case as most companies' environmental and corporate social responsibility policies are high on the agenda. In short, there is a wider choice of 'ethical' companies for fund managers to choose from and these companies are often market leaders in their sectors."
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