Triodos launches two new ethical funds

Offering investments linked to stock markets for the first time, Triodos Bank has developed two new ethical funds that allow investors to select which end of the green spectrum they prefer.

The first of the two – Sustainable Pioneer – is a global fund designed to support small to medium-sized companies that are involved in sectors including clean energy and medical technology.

The only companies eligible for investment under this scheme are those that are generating more than 50% of their revenue from environmental themes and climate protection.

Companies in the fund that have met these requirements include Smith & Nephew, a large developer of medical equipment within Europe, and L’Occitane, a US natural and organic food company.

The second new ethical fund, Triodos Sustainable Equity, invests in companies that are more mainstream, and combining social and environmental concerns within their financial goals.

A larger list of companies qualifies for investment through this fund, including BMW, Volkswagen, National Bank of Canada, Adidas and Nike. The fund’s inclusion of these firms, and three companies that have received reputational damage from tax avoidance activities – Google, Starbucks and Vodafone – could put some of the stauncher green and ethical investors off.

Despite this, Triodos states that both funds operate on strict minimum standards, including a zero tolerance approach to hazardous materials, nuclear power and armaments.

Triodos is currently offering a 1% discount on the funds’ initial fee, until June 28, taking it down to 3%, after which it will revert to 4%.

Further reading:

Triodos growth shows viability of sustainable banking

Sustainable banks more ‘robust and resilient’ than high street institutions

‘Sustainability is the driver of returns’

The Guide to Ethical Funds 2013