Ethical investments seen as lower risk

by Gill Montia

Story link: Ethical investments seen as lower risk

The UK’s savers are apparently wising-up to the benefits of ethical investments.

According to the Ethical Investment Research Service (EIRS), the number of people seeking to invest in ethical funds is “rapidly growing”.

While in recent years interest in ethical and green products has been gaining pace generally, Mark Robertson, a spokesman for EIRS believes that some “savvy” investors are beginning to see that ethical savings products could be “attractive investment propositions – especially in the longer term”.

In the light of recent global financial events, Mr Robertson argues that “companies that manage environmental, social and governance issues well tend to be less exposed to risk”.

According to the Investment Management Association, ethical fund investment increased to £5.9 billion in the fourth quarter of 2007, an 18% rise on the same period of 2006.

Over the whole of last year, net retail sales for ethical funds reached record levels. Sales rose to £473 million, compared with £136 million in 2006.