Pandemic drives ethical investment upwards

Triodos Bank has released new research showing that the COVID-19 pandemic is driving growth in ethical investments, estimating that £22bn could be invested in a green and fair recovery.

The latest annual Impact Investing Survey has found that awareness of ethical investing is significantly higher than in any other year since the survey began and that COVID-19 is motivating over a fifth of investors (22 per cent) to explore investing in ethical funds.

Whilst record numbers are thinking of impact or ethical investment, transparency of investments remains a major issue, with only 11 per cent of investors confident that they understand where their money is invested.

The research calculates that if the 2.4 million UK investors that currently hold adult Stocks and Shares ISA accounts switched to an ethical investment fund, £22 billion per year could be channelled into businesses that are actively tackling and delivering measurable results. Furthermore, the climate crisis and COVID-19 pandemic are key drivers in increasing demand for impact investment products. Over a third (39 per cent) of private investors think ethical investments are the key to addressing the climate issues to avoid future pandemics.

Gareth Griffiths, head of retail banking at Triodos Bank UK, comments: “It’s clear that many people want a green and fair recovery and are prepared to invest in making it a reality. The COVID-19 crisis has encouraged us to re-evaluate our consumer choices and appreciate the power behind where we invest or save, highlighting that impact investments make environmental, social and financial sense. Impact investors are a powerful force for change and impact investments are helping to tackle the global challenges we’re all facing. We hope that as society recovers, more people choose to support companies that are prioritising the environment and behaving responsibly to help create a better future for all.”

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