Good Money Week: Barchester Green names top five ethical funds

Ahead of the Good Money week, which will commence on Sunday, UK ethical financial advisory firm Barchester Green has identified five pioneering positive investment funds that make investment both profitable and responsible.

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To mark Good Money Week, an annual initiative launched to raise awareness of sustainable finance that will run from October 19-25, Barchester Green identified five funds that not only avoid exposure to fossil fuels companies, but also engage with other firms committed social and environmental issues.

They include the WHEB Sustainability Fund, the Alliance Trust Sustainable Futures UK Growth fund, Quilter Cheviot Climate Assets Fund, Premier ConBrio B.E.S.T Income Fund and Jupiter Ecology Fund.

John Ditchfield, director of Barchester Green, said, “When you’re making an investment you should look at long-term opportunities. Positive investment funds, which invest in companies that are successfully helping to solve environmental and social problems, offer good prospects for long-term growth.”

There is a growing trend among investors – particularly among education and religious institutions – to exclude or divest from fossil fuels companies on both ethical grounds, because of the negative effects on the environment and human health, and financial grounds.

Experts have warned that if policies are implemented to keep global warming under the 2C threshold suggested by scientists, around 80% of fossil fuels reserves must stay in the ground. This means that investors are at risk of being left with devalued assets.

Ditchfield added, “There is a clear link emerging between sustainability and business success and we believe these pioneering positive investment funds are well-placed to spot emerging opportunities in the green economy. 

“To respond to the growing call to reduce exposure to fossil fuels, the traditional ethical investment market needs to move on from ‘negatively screened’ funds to offer investors a more progressive positive investment strategy.”

Photo: J D Mack via flickr

Further reading:

‘Carbon bubble’ risk reinforces the case for fossil fuel divestment

Investors warned of ‘stranded’ carbon assets and working condition risks

Report calls for businesses to move from ‘doing less harm’ to having positive impact

Sustainability top priority for quarter of British small businesses