Go compare with our comparison table

Ethical investment could help tackle climate change

04 November 2009 / by Rebecca Sargent

More education and implementation of ethical investment could help to tackle the growing issue of climate change, FairPensions has claimed.

According to a recent report by the campaigning organisation, which surveyed 100 leading investment fund managers, 89 per cent of respondents said that climate change was either important or very important when it came to their investment research.

However, despite this level of awareness, the survey also highlights some of the barriers facing investment fund managers when it comes to ethical investment.

According to the survey, the low current carbon price was the most significant barrier to the incorporation of climate change risks and opportunities into investment analysis and decision making, as 63 per cent of fund managers cited this as a barrier.

Another hurdle facing fund managers is the fact that they feel under little pressure by clients to address the issue of climate change when it comes to assessing investments.

However, despite the fact that various fund managers are tackling the issue at hand differently, FairPensions believes that with a few alterations, ethical investment could go a long way towards combating climate change.

Recommendations made by FairPensions include the need for investors to give clear instructions to fund managers when it comes to the risks and opportunities associated with climate change.

The report also suggests that guidance from the Government could encourage companies to report on their exposure to climate change risks and take action to reduce their exposure.

Finally, FairPensions believes that fund managers should start focussing on, "longer tern trends (such as expected future carbon prices) in anticipation of clients' increasing assertiveness about their longer-term interests, and as a means of rebuilding client and public confidence in themselves and the financial services sector."

© Fair Investment Company Ltd

ProviderProductMore Info
Global Eco Trends FundMore Info >
Socially responsible fund that aims to achieve long-term capital growth. Save 100% on Initial Charges.
Jupiter EcologyMore Info >
The objective of the Fund is to achieve long-term capital appreciation together with a growing income consistent with a policy of protecting the environment. The Fund’s investment policy is to invest worldwide in companies which demonstrate a positive commitment to the long-term protection of the environment. See latest fund factsheet for details.
Ecclesiastical Amity InternationalMore Info >
Income Paid Quarterly. The Fund aims to achieve long term capital appreciation and a reasonable level of income by investing principally in International companies. The Amity International Fund seeks to invest in a portfolio of companies which make a positive contribution to society and the environment through sustainable and socially responsible practices. The Fund seeks to avoid investment in certain areas such as companies which have a material involvement in alcohol, tobacco and weapon production, gambling and publication of violent or explicit materials. See latest fund factsheet for details.
Schroders Global Climate Change FundMore Info >
The Fund's investment objective is to provide capital growth primarily through investment in equities and securities of worldwide issuers which will benefit from efforts to accommodate or limit the impact of global climate change. Investment will be primarily in directly held transferable securities. The fund may also invest in collective investment schemes, cash, deposits, derivatives, warrants and money market instruments.See latest fund factsheet for details.

The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below.