Surviving the Storm with Ethical Investments in the UK

The lockdowns that helped curb the spread of the coronavirus have resulted in significant improvements in air quality. Coal power generation also reportedly collapsed. For environmentalists, that’s a reason to celebrate as the stock market even moved in their favour as many environmentally sustainable funds have outperformed conventional funds. This is driving interest in ethical investments in the UK. 

The data below comes from the global research agency Morningstar, and it is proof that ethical investments or environmentally focused investing have hit the mainstream. In fact, one of the biggest fund managers—Vanguard—has launched ethical funds for UK investors, and the biggest insurer in Britain—Aviva—now has a climate transition fund. 

Morningstar looked into 745 sustainable funds and compared them with 4,150 traditional funds. The results show that the sustainable funds beat or at least matched returns in every category (i.e. shares and bonds) in the UK and overseas. The success rates and average returns for sustainable funds show that there is no performance trade-off linked to them. Most of them even outperformed traditional funds over time, and they continued to do so during the COVID-19 pandemic. 

Ethical investments in the UK may be just what you are looking for if you want to invest in something that can make a significant impact on the health, life, and safety of people. Ethical investing is the practice of applying your ethical principles as the major filter when selecting securities for your investments. It will depend heavily on your personal views and moral or ethical principles; therefore, it can provide more personalized results as opposed to socially conscious investing, which follows a set of guidelines for picking portfolios. 

Ethical investments in the UK typically steer clear of investments involving sin stocks, particularly those related to gambling, firearms, tobacco products, and alcohol. As you pick stocks, you may also want to consider the source’s alignment with your personal and moral values and beliefs along with its projected, current, and historical performance. 

Ethical investing allows you to allocate capital to the companies whose values and practices align with your personal beliefs. It’s important to examine investments before you consider them in your portfolio. If you are new to ethical investments in the UK, look into investment companies that are focused on opportunities in the modern foods industry, particularly those concerned with creating environmentally friendly alternatives to traditional meat production by providing plant-based products.

Agronomics (LSE: ANIC), the AIM-listed investment company, remains the only UK based vehicle that provides the public with an opportunity to engage in a sector which is likely to become the future of our food. August saw Agronomics participate in BlueNalu’s latest fundraising round following the announcement of their First-of-its-Kind Commercialisation Strategy. When Jim Mellon and Anthony Chow return from attending the Good Food Conference, I am sure the September buzz for this hot sector will continue.

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