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Pros
- Is about knowing what activities your money is involved with
- Is about investing in companies which are making a difference in a positive way
- Is about individuals making a difference in accordance with their own ethics: social, environmental and religious
- Offers investors exposure to sectors that offer very high growth due to the nature of, for example, emerging energy and waste control technologies
- Government legislation is increasing the weight of funds in this sector e.g.
regulation/promotion of green energy, the offer of carbon credits in energy production, fines and disincentives for polluting
- Social acceptance and attractiveness of this style of investing will increase level of funds and therefore support and prices
- Performance of many of the managed funds has equalled or exceeded those of conventional funds with similar sector exposure
Cons
- Extra volatility due to nature of “new” and untested technologies, and current high levels of competition
- Limited historical record of the ‘ethical’ approach compared to ‘conventional’
investments
- Potential changes in Govt. legislation, e.g. reduction in regulations or incentives
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