What is Ethical Investing?

Choosing to invest ethically does not mean you have to say goodbye to a diversified portfolio. Going green equals more than just renewable energy and fair trade coffee

Emma Wall 14 October, 2013 | 1:08PM

Read more on ethical and sustainable investing in Morningstar's Ethical Investing Week 2013.

Since the global recession investors have – rightly so – been concerned primarily with cash preservation and income paying stocks. While many would like to think of themselves as ethical investors, the common misconception is they would have to do-away with stability in order to support green industry.

But this is not the case.  Ethical investing is a considerably broader sector than many imagine. Traditional ethical funds – referred to as “dark green”, do take a very restrictive approach to investing, screening out stocks that are involved in “unethical” industries such as alcohol, animal testing, tobacco, oil and armament firms.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
ASOS PLC3,319.00 GBP0.00
Barclays PLC117.76 GBP0.00
BMO Responsible Global Equity A Inc EUR23.89 EUR-0.26
BP PLC290.80 GBP0.00
Impax Environmental Markets Ord359.59 GBP4.23
Jupiter Ecology406.23 GBP-0.41
Vodafone Group PLC123.42 GBP0.00

About Author

Emma Wall  is former Senior International Editor for Morningstar

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