Ethical pensions on the rise

In 2000, the government made it compulsory for pension providers to tell customers whether consideration of social, environmental or ethical factors influences the choices they make when investing.

Now - according to new research - ethical pensions are becoming the investment of choice for an increasing number of people.

The research, conducted by Co-operative Insurance (CIS), a leading personal pensions provider in the UK, found that half of new personal pension customers choose to invest their pension in ethical funds, and that 17% more men than women invest in ethical funds. The most likely customers to invest in an ethical pension were 35 year old men.

Providers of ethical pensions actively engage with the companies they invest in, encouraging them to focus on green initiatives and worker welfare.

Head of pensions at CIS, Danny Hurley, said that “Over the last 20 years, the growth in ethical investment has been immense.

“When it comes to making a major financial decision like choosing a pension, people are becoming more conscious of the impact that they can have on the environment by choosing their investments in a socially responsible manner.”

He added that an ethical personal pension can help customers to “bring about positive change through their long-term savings.”

In the third quarter of 2007, 500% more was invested in ethical funds compared to the third quarter of 2006. Total ethical funds under management increased by 29% compared to 2006.