Most of us would like to see our investments, savings and pensions run on ethical and environmental principles. Yet less than 30% of the population realise that there is an ethical investment option, with a wide range of products available. Today around 80 ethical and socially responsible funds are offered to the public, and in December 2005 the amount of money invested in ethical funds stood at £6 billion.

Ethical investments tend to avoid companies involved in:

Environmentally damaging practices, trading with oppressive regimes and countries with poor human rights records, pornography, gambling , tobacco and alcohol production, unnecessary exploitation of animals, unsafe products and services, genetic engineering, armaments.

Socially responsible investments actively seek out firms which make a positive contribution, for example:

Products and services which are of long term benefit to the community
renewable energy and natural resources, environmental improvement and pollution control, high employee welfare and equal opportunities standards, organic farming and foods, strong community involvement, respect for the sanctity and dignity of human life, openness about their activities.

There are a number of Independent Financial Advisers (IFAs) who specialise in ethical and ecological investments. An IFA should ask new clients about their ethical stance to assess their ‘ethical profile’, and tailor investments to suit their beliefs.

Naturally we invest money to gain financially from it. Ethical investments, if carefully chosen to match your needs can perform well, roughly equivalent to the FTSE index, & some can out-perform ‘ordinary’ funds.

EIRIS – the Ethical Investment Research Service provides independent research into corporate behaviour so that ethical investors can make informed & responsible investment decisions. EIRIS has produced a book “Money and Ethics” & publishes a monthly magazine “The Ethical Investor”.

The Alternative Economy
But investment need not only focus on money – many people concerned about the state of the planet & the inequalities created by global business & enterprise are searching for ways of creating an alternative economy.

In Herefordshire we have two LETS (Local Exchange Trading Schemes) which help people to exchange goods & services with one another without the need for money. Such schemes can help to build strong, supportive communities. Anyone can join – individuals, clubs & associations, charities, small businesses & local services. People earn LETS credits (in Hereford they are counted in Wyes, and in Leominster in Luggs), that they can spend on whatever is offered by others in the scheme. We also have one Credit Union, in Leominster. Credit Unions are financial cooperatives, offering their members an easy, convenient place to save, & access to low cost loans when required

EIRIS (Ethical Investment Research Services)
80-84 Bondway, London. SW8 1SF
0207 840 5700 www.eiris.org

New Economics Foundation, 3 Jonathon St; London. SE11 5NH
0207 820 6300 www.neweconomics.org

Triodos Bank, Brunel House, 11 The Promenade, Bristol.BS8 3NN
0117 973 9339 www.triodos.co.uk