Teens boost demand for ethical investors

Pester power is hitting investments with a quarter of teenagers pushing their parents to invest in ethical companies.

As teens grow into investors in their own right, demand for green and ethical investments is expected to continue soaring, according to a poll by the UK Social Investment Forum (UKSIF) for National Ethical Investment Week (NEIW).

Research found 85 per cent of teens felt they had the responsibility to ensure firms they might invest in did not harm the environment.

Some 82 per cent wanted to make sure their cash would not help firms that did not behave ethically.

Furthermore, 65 per cent said they will use their spending power to make a real difference in social and environmental issues.

While adults share some of the same sentiments as the teenagers, they lack the knowledge to back beliefs with financial action.

Some 62 per cent of adults said the option to support social and environmental issues is important to them in their choice of financial provider, but 67 per cent have little or no understanding of green and ethical investments.

In total, just 11 per cent of those surveyed currently invest in green and ethical funds.

Barbara Stocking, chief executive of Oxfam, said: "Investors make choices on our behalves, choosing where to invest our savings, pensions, mortgages and other money.

"It is up to us to hold them to account to make sure they help rather than harm poor people and the environment."

James Dalby, fund development manager at Norwich Union, added: “It’s important to consider the key results of this research - the younger generation has strong feelings about green and ethical issues.

"Teenagers represent a section of the population that is a vital part of the future - they will ‘lobby’ older generations on a whole range of social and environmental issues.

"This will certainly help to raise the profile of green and ethical investing.”