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Ethical funds performing poorly? We think not

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One of the most common criticisms levelled towards green and ethical funds relates to performance – namely, you’re sacrificing a good rate of return by investing ethically, sustainably or responsibly.

As we know, though, ethical investors don’t invest in a more enlightened fashion purely to reap strong financial benefits. They do so in order to have a positive (or in some cases, not a negative) impact on the environment and society; and to invest in solutions to some of the world’s biggest challenges such as climate change, water shortages and human rights abuses.

But if the chart below – data for which was sourced on December 10 – represents poor performance among ethical funds, then please, sir, we want some more:

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Further reading:

Why I chose ethical investment: investing responsibly in my children’s future

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Why we chose ethical investment: making money do active good

Talk of high returns amongst ethical investors detracts from the point

Sustainable investment flourishes amongst European high net-worth individuals

Ethical investors are not tree huggers, but air breathers (and responsible global citizens)

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The Guide to Sustainable Investment (NEIW edition)

 

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