Ethical Finance: Does Britian Care?

A third of investors are likely to consider ethical issues when buying their next financial product, according to an Ipsos MORI/EIRIS consumer survey published today.

Banks and financial institutions should prioritise protecting human rights, tackling climate change and investing in fair trade, the 1,073 respondents to the survey said.

Consumers said banks and other financial institutions should prioritise concerns such as protecting human rights, investing in fair trade, protecting the environment and tackling climate change. Avoiding ‘sin’ stocks such as companies in alcohol, gambling or armaments – which have traditionally been the focus of ethical investors - was of far less interest.

However, awareness of ethical financial products is low as is trust, with more than a third of consumers not believing claims made by financial providers. But only 15 per cent thought ethical products were likely to underperform similar standard products.

The survey provides firm evidence of growing interest in ethical finance, suggesting that the message that it is possible to both make money and make a difference when investing ethically is starting to get through to consumers. But levels of awareness, trust and confidence in ethical finance are low. The industry must respond with greater transparency and provide more information on how saving and investing can make a positive difference.

Last week, National Ethical Investment Week highlighted the growing number of green and ethical financial products which are available. EIRIS' newly launched one-stop-shop consumer website – http://www.yourethicalmoney.org/ will increase the visibility of ethical financial and provides consumers with all the tools and resources they need to choose ethical options as part of their financial planning.

- Mark Robertson