Ethical investment on the increase.

By the end of last year more than [pounds sterling]3.7bn had been invested in ethical funds in the UK and the trend is growing. Penny Shepherd, Executive Director of the UK's Social Investment Forum, told a recent conference organised by Euromoney Seminars on Ethical Investment Management, that

local authorities, in particular were more likely to invest in socially responsible companies. The introduction of the requirement on pension funds to disclose whether or not they were incorporating socially responsible investment, indicated that 59% of funds representing 78% of assets were doing so. She also expected an acceleration in recent trends which had seen Non-Governmental organisations with an interest in the environment tabling shareholder resolutions at annual general meetings. Analysts were also beginning to focus more on how environmental issues may affect a company's competitive edge.

Charles Henderson of Aegon Asset Management said that there was a growing trend towards environmental analysts who were compiling data to screen companies working more closely with traditional investment analysts. They were able to provide them with information on current policy issues which could affect performance. Companies which had undergone screening and had failed to meet the criteria to be listed on an index were exposed.

Dominique Be, Deputy Head of Unit in the Employment and Social Affairs Directorate of the European Commission, said that the Commission would be consulting on its Green Paper on Corporate Social Responsibility between now and the end of the year. It would hold a conference on the issue this November and publish a final strategy next year.

Copyright UK Environment News Ltd - Vol 5, Issue 5, July/Aug 2001. Tel 020 7351 3954. UK Environment News cannot accept any incidental or consequential liability for information carried in this article.