The Rise of the Ethical Investor
More than half (54%)* of all GB adults with investments want to 'make money and make a difference' according to research carried out by YouGov on behalf of UKSIF, the sustainable investment and finance association.
The research reveals there is a growing appetite for green and ethical options across the board, especially among those aged 35 and over.
For the third consecutive year, UKSIF is coordinating National Ethical Investment Week (16-22 October 2011) and its aim is to ensure everyone knows that they have green and ethical options when it comes to their financial decisions.
Penny Shepherd MBE, UKSIF Chief Executive, said:
"The research shows that although only 8% of savers and investors currently hold green and ethical investments, a further 37% will consider doing so in the future – a huge opportunity for financial advisers."
Liz Andrews is a Chartered Financial Planner for Gilbert Stephens LLP and offers Ethical Investment Advice to clients across its three Devon offices. Liz comments:
"Socially responsible investments can now deliver excellent performance, providing investors with a real choice. There are a wide range of investments, including ones for the more risk averse and investors have the flexibility to 'test the water' before committing all funds."
Consumers are making more environmentally and socially conscious choices about the food and clothing they purchase, the transportation they use and how they dispose of waste, so it stands to reason that 'green thinking' would eventually filter into investment decisions as well.
The research results indicate a shift in consumer / investor behaviour toward more sustainable / responsible investments and global events such as the BP disaster also brought this topic to the fore, with many re-evaluating where their money is invested.
"We have seen a marked increase in the number of clients enquiring about ethical investments, which clearly indicates a shift in investment preferences. Clients are starting to instigate a discussion about ethical investments where this was once Adviser led."
"Before the situation with BP, most people probably didn't give too much thought to how their money was invested, so long as there was a suitable return. We use software that allows us to pinpoint exactly how the client wants their money invested - acting like an ethical investment checklist."
This means investors can opt-out of sectors / industries such as armament or tobacco and instead opt-in to companies demonstrating positive contributions to the environment or the community.
For more information about ethical investments or if you would like to find out how to create an investment portfolio suited to your requirements, visit www.gilbertstephens.co.uk/ethical
