Ethical investing – also known as sustainable investing, responsible investing and socially responsible investing (SRI) – refers to any area of the financial sector where the environmental, social, governance and ethical principles of the investors influence their investment decisions.
Ethical investing gives individuals the power to allocate capital toward companies that are in line with their personal views, whether they are based on environmental, religious or political precepts. Investors should keep in mind that “ethical” does not imply “outperform.”
Various social, environmental and other ethical factors influence the choice of investments. Friends Provident launched its Stewardship fund in 1984 – the first ethical fund of its kind and now managed by F&C Investments.