Ethical investment is now an important sector of the investment market. The ‘beards and sandals’ image it once possessed has long disappeared as an increasing number of investors, both individuals and institutions, have focussed on the social, environmental and ethical aspects of investment.
Somewhat confusingly, ethical investment now has a number of different labels attached to it. Socially responsible investment (SRI) is now a widely used term, but so too are ‘ethical’, ‘environmental’, ‘green’ and ‘responsible’ investment. One of the leading research bodies in the area now talks in terms of investment based on “the environmental, social, governance (ESG) and ethical performance of companies”.
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