You are here: Home - Saving & Banking - News -

Ethical funds not tackling climate change

0
Written by:
07/02/2008

A study of funds available in the UK which purport to be socially responsible and ethical has shown that very few actually invest in companies which are directly tackling climate change.

The report, ‘A Guide to Climate Change Investment’, by independent financial adviser Holden & Partners, examined the top 10 holdings of all SRI, ethical and environmental funds available to UK private investors.

It found that most SRI and ethical funds’ top 10 holdings are surprisingly mainstream, with names like Vodafone and Royal Bank of Scotland occurring time and again. However, many also have holdings in large mining corporations as well as BP, Shell, Total and other oil majors.

As a result, investors in SRI and ethical funds, who were hoping to support the low-carbon economy, may find that they are buying into multinationals more associated with being part of the problem rather than part of the solution.

Of the SRI funds that gave full information about their holdings, Henderson’s Industries of the Future scored most highly with 51.1% of its fund in environmental solutions providers. In contrast, environmental stocks make up less than 1% of L&G Ethical Funds portfolio.

The new generation of environmental and climate change funds is far more focused on companies developing global solutions to environmental problems. However, some of these also throw up some curious holdings including Porsche, Renault, Nestlé and Danone.

Peter Holden, partner at Holden & Partners, said: “This report shows that the SRI and ethical funds have not kept pace with the public’s appetite for environmental solutions. Many are investing in mainstream ‘old economy’ companies whose contribution to solving environmental problems is questionable.
 
“There are good environmental funds available though, the environmental economy is enjoying strong growth and is an investment opportunity. However, it is a complex area and we would recommend that anyone making an investment seek independent financial advice.”

 

 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
TD Waterhouse investors looking East

Investors with TD Waterhouse think the Chinese Year of the Rat – an animal regarded as a bringer of wealth...

Close