The amount of money being invested ethically in banks and investment funds has increased by the largest amount in a decade.

While only making up approximately 1.8 per cent of the overall amount in UK deposits and investments, money in ethical finance has increased by 34 per cent over the last 12 months, marking a near four-fold expansion between 1999 and 2009 from £5.1billion to 19.2billion

The figures, published by Co-operative Financial Services, compared the total amounts deposited in high street banks and invested in funds with the increases in the amount of money in ethical finance.

This showed a 15 per cent increase in total deposits and investments, compared to the 34 per cent increase in ethical finance.

Tim Franklin, chief operating officer at Co-operative Financial Services, said: “The growth that we’re witnessing is evidence that in the wake of the financial crisis more consumers are considering the ethical as well as the financial impacts of their money.

“While ethical finance has grown steadily over the decade there has clearly been a recent acceleration.”

Franklin said the Co-operative had experienced a 38 per cent increase in current account openings in what he termed a ‘flight to trust’ by consumers.

Comparing ethical finance figures for 1999 compared to 2009 show ethical investments grew by 322 per cent from £2.9billion to £9.5billion, with a 423 per cent lift in ethical banking from £2.1billion to £9billion.

The total overall amount in UK deposits and investments, using figures from the British Bankers Association and Investment Management Association, was £1,080billion, up from £938billion in 2008.

Co-operative Financial Services, which provides three actively managed sustainable funds, is sponsoring this year’s National Ethical Investment Week (NEIW) which runs from 7 November to 13 November.

© Fair Investment Company Ltd