Investors Unwittingly Support Unethical Industries

Friday, October 16, 2015

More than two thirds of investors do not know whether the activities of industries or companies they are investing in are ethical

Over 60 per cent of investors are unaware of which industries and companies their investments are in despite the majority stating that they would not invest in unethical companies, according to research from sustainable and ethical bank Triodos.

Triodos’ research revealed that more than 70 per cent of investors want more of their pensions and investments to be invested in environmental and social sectors, such as renewable energy, while 85 per cent of investors would act if they felt their investments conflicted with their personal ethical views.

The bank says that the ethical areas of most concern to investors are human trafficking (70 per cent), forced and/or child labour (67 per cent), pornography (49 per cent), animal testing (45 per cent) and arms / munitions (41 per cent). The majority of investors stated that they would stop investing in a particular company, fund or pension if they discovered that they were involved in these practices.

Despite this Triodos says that 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.

 

Source: Moneywise (link opens in a new window)

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Entrepreneurship
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impact investing