Socially Responsible Investment on the rise

Today's investors are no longer motivated solely by financial return, it has emerged.

According to the latest Friends Provident Lasting Lifestyles report, socially responsible investors are now considering ethical values when choosing their pension investments.

Whereas 23 per cent invest in the best possible pension fund for their money, 16 per cent want to invest for the joint reasons of earning money and at the same time being socially responsible.

Labeled the Nu Authentics, these socially aware groups of investors are encouraging companies to take a more responsible attitude as they prefer pensions with an ethical outlook.

Julia Dreblow, SRI marketing manager at Friends Provident, said: "People are increasingly looking to do their bit for society and for those who are already buying organic and regularly recycling, looking at the impact their investment could have is simply the next logical step.

"The common view that investors are only motivated by financial return is simply outdated."

Dreblow added that the Friends Provident Stewardship Pension Fund - "the UK's first retail ethical pension fund" when it was launched in 1984 - has recently "exceeded the £1 billion mark". This, she says, proves the demand and support for ethical investments in the UK.

Date: 24.07.06