Co-op Hails Rise in Ethical Investment

Ethical investments are growing in popularity in the UK, new analysis from Co-operative Financial Services has shown.

An expert at the firm, which specialises in ethical or "green" finance, said today that the general public was becoming "more willing" to consider the investment strategy. Ethical funds operate on the promise that they will use money deposited in them on investing in sectors such as renewable energy - and will avoid diverting cash into "unethical" concerns such as arms trading.

The Co-op's point of view has been backed up by a recent study from the Ethical Investment Research Service (EIRIS), which found that around £8.9 billion has been invested in ethical funds over 2007. This is a big increase over the annual rate ten years before, which stood at just £1.5 billion.

Referring to the firm's own analysis of the sector, Co-op spokesman Andy Hammerton added: "Last year ethical finance grew 15 per cent. This is in line with the upward trend in more general ethical consumerism which was up nine per cent. Consumer interest has grown in ethical issues, especially climate change.

He added: "As a result more consumers are more willing to consider an ethical finance product than they were several years ago."