The idea of investing in companies that contribute to society, help the environment and behave ethically has been around for decades.
Indeed, April this year saw record inflows of almost £1billion into responsible investment funds.
What looked potentially like a knee-jerk reaction to the outbreak of coronavirus, proved more sustained, however.
Investment Association figures show that three months out of the past four with data available saw investors continue to pour more than £900million a month into responsible investments.
April this year saw record inflows of almost £1billion into responsible investment
But it’s a broad bucket that makes up so-called ‘ethical’ and ‘responsible’ investing.
What does it mean exactly? What’s the difference between a fund claiming to be ethical and one claiming to be green?
How do we know whether what we would consider green is the same as what they consider green?
The answer at the moment is, we don’t.
The Financial Conduct Authority is currently consulting on how to apply financial disclosure on climate change exposure rules to public companies, but there are no plans so far to subject funds to the same rules.
A similar consultation is going on at the Department of Work and Pensions, but won’t