According to latest research, most investors don’t know whether the activities of the companies or industries they are investing in are ethical or not.
Following the European Commission’s Green Paper, which looks at how to improve choice, transparency and competition in retail financial services, Triodos Bank has published research into investor attitudes towards ethical investments and the most hated sectors.
Top-line findings:
- Almost two-thirds (63%) of investors don’t know whether the activities of the companies or industries they are investing in are ethical
- Only a quarter (25%) of people say they know if their investments are ethical – further highlighting the importance of transparency
- Investments made through pension funds and stocks and shares ISAs, for example, can lead consumers to inadvertently finance activities they ethically or morally object to
- The vast majority (85%) of investors would act if they felt their investments conflicted with their personal ethical preferences
The top practices which would stop people investing financially are:
- Human trafficking – 70%
- Forced / child labour – 67%
- Pornography – 49%
- Animal testing – 45%
- Arms / munitions – 41%
- 71% of investors said they want more of their pensions and investments in environmental and social sectors
- Almost half (46%) of investors would like more of their pension or investment products to be invested in renewable energy, while 43% would like to invest in healthcare and 37% in sustainable businesses
