Investments concerning green issues should carry a lower-risk than plenty of others, according to an industry source.
The Ethical Investment Research Service (EIRIS) has commented that more ethically-minded companies are more likely to avoid liabilities over social and environmental issues.
Assistant director for the firm Brunno Maradei stated that these organisations usually have a "good overall business management practice" which can give investments a more stable return on their investment.
"Companies actively managing environmental, social and governance issues should be lower-risk investments ... not because of the future liabilities they avoid related to environmental and social issues such as boycotts and legal damages," he said.
Mr Maradei also added that the idea that greener companies are automatically smaller is subjective, as many groups are involved with much larger partners.
EIRIS researches corporate responsibility and sustainability issues for investors independently.
Find out more about investment
© Adfero Ltd