Shell-BG deal creates dilemma for ethical funds

Shell's planned £47bn takeover of BG Group could present ethical funds with a new dilemma as it removes one of their largest potential investments.

Most ethical funds screen their investments according to ESG criteria, selecting only companies that do not damage the environment, make a positive social contribution, and have high standards of corporate governance – or one of the three. This screening process generally excludes oil and mining companies, with Royal Dutch Shell no exception.  However, its takeover target, natural gas producer BG Group, meets the criteria for inclusion in ethical portfolios, and some of the largest ethical funds in the market count BG among their top ten holdings.  F&C's £390m Responsible UK Growth...