This is the most important question, when was the last time you were asked what you were passionate about or what are you are totally against?

Everyday people who do not apply ethical or social screening to their money are allowing their funds to be used to finance companies and projects they may not support. If your Bank, Insurance, Pension or Investment Company were to ask you if you would mind them using your money to finance a heavily polluting company - what would you say?

Ethical, or Socially Responsible, Investment offers the opportunity for investors and savers to avoid the companies whose activities they would not want to support, and invest in those operating within a moral framework that reflects their own moral stance.

Whatever your concern may be- People, the Planet, Animals, Faith, there are now a large amount of ethical/socially responsible funds. The concept of ethical is going to vary between different people but for an increasing number of investors, not only avoiding certain activities but actively investing in a positive way, supporting companies that are contributing to a sustainable future.

What Criteria is used?


Negative Screening

Is the practice of exclusion of a certain specific criteria which might involve a company’s involvement in one or more of the following

  • The production, sale and trade of arms and weapons (guns etc.)
  • Animal experimentation and intensive farming
  • Tobacco
  • Alcohol
  • Pornography
  • Companies that trade with countries which abuse human rights
  • Environmental pollution
  • Nuclear power
  • The development and use of genetically modified organisms

Positive Screening

Is the practice of inclusion of companies which adopt good policies in one or more of the following

  • Have good working practices, conditions & policies e.g. equal opportunities, investors in people
  • Respect animal welfare
  • Community involvement e.g. those involved in public housing, public transport, healthcare products and services.
  • Alternative energy
  • Pollution control
  • Sustainable forestry
  • Organic farming

Positive Engagement Investing:

“Socially Responsible Investment” has evolved over the years as to not just avoid investing in companies that took part in practices deemed to be unethical. Investors thought this is not enough and wish to influence corporate decisions that are akin to their ethical stance.

  • Positive selection of companies who adopt an ethical approach
  • Shareholders influencing corporate decisions
  • The use of publicity to exert pressure
  • Involve in dialogue with management to encourage positive ethical focus

Invest-ethical is a trading style of Advance Financial Services (NI) Ltd which is an appointed representative of Quilter Financial Services Limited and Quilter Mortgage Planning Limited, which are authorised and regulated by the Financial Conduct Authority. The information and / or guidance contained within this site is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

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