How ethical are ethical funds?

Conservative party leader David Cameron's recent struggle to erect a wind turbine on his roof in central London is symbolic of the green frenzy that has gripped the UK over the last couple of years as politicians, celebrities and companies seek to out-green each other

Even the normally staid world of investment has not escaped this phenomenon. In a world were ethical and especially environmental issues have achieved an unprecedented level of awareness, it is unsurprising that an increasingly large number of investors are choosing to define their investment criteria in social, environmental and ethical (SEE) terms as well as the more conventional metrics of risk, reward and income. As befits an emerging sector, Socially Responsible Investing (SRI) has evolved rapidly over the last two decades. While older funds tend to have the strictest criteria, imposi...