The rise of Ethical Investments - Emerging Real Estate

The rise of Ethical Investments

07/10/2010

 

Ethical Investments on the Up

With an ever increasing number of property advisors, investment groups, banks and pension providers looking at more alternative investment ideas, it’s interesting to see how ethical investment actually began.

It is generally believed that the various ideas behind ethical investments began in the US where it is often referred to as ‘socially responsible investment’. As early as the 1970’s, ethical investments were spreading amongst those in the know, and when the Vietnam War impacted upon the nation’s consciousness, investors started to look for opportunities that were socially and morally responsible. In the long run, ethical investors were looking for investments that would not prop up oppressive regimes around the world or assist the arms trade. This marked the first real foray into ethical investment, although some argue that the principles of ethical investment can actually be traced all the way back to the 18^th Century when churches would avoid contributing any money to ‘sinful’ pursuits such as alcohol and gambling.

Ethical investments were introduced to the UK in the early 1980’s and one of the first groups to offer such investment opportunities was the leading Insurance firm Friends Provident, who launched their first Ethical Fund in 1983 and followed it with numerous other ethical widespread investment funds. Many others followed suit and today it is commonly accepted that ethical investments are a substantial and responsible way forward for all companies. These investments are usually with companies who are fair, transparent and make a positive contribution to their society - this could be through fair trade and fair wages, charitable and philanthropic contributions, investing in renewable forms of energy, sustainable agriculture, or carbon neutral firms with and outstanding environmental record. Firms with a history of polluting the environment, or have been guilty of animal or human rights abuse, are often now avoided on principle. In short, ethical investment discourages this type of behaviour creating a fairer and more sustainable world. With many of the world’s leading companies now aware and acutely interested in issues such as environmental pressure, alternate energies, regeneration and fair trade this trend is without doubt the future of investment.