Different approaches to responsible investing

It is increasingly accepted that various forms of ethical or responsible investing will gain in importance in financial markets, reflecting evidence that consumers view these issues as significant and companies believe they reflect best practice in business management. The Stern Report should ensure the political agenda remains focused upon these factors. However even with all of these factors becoming increasingly aligned, there remain many obstacles to responsible investing becoming mainstream

We should start with a quick recap of the progress already made within ethical/SRI markets. Over 90 broadly defined ethical funds now exist, with over £6bn invested within the IMA universe. These assets doubled between 2001 and 2005 and the inflow in Q1 of 2007 exceeded the whole amount invested last year. In turn these funds are managed by an increasingly diverse range of managers as they see the necessity of developing their expertise in this area. Hence we have a rapidly growing range of funds catering to different interests which is strong evidence of the belief that this segment will ...