UK - The UK has become the leading provider of ethical pension funds in Europe, according to a report by the Association of Chartered Certified Accountants (ACCA).
The report, An Analysis of European Ethical Funds, found the number of UK investors in ethical funds, such as pensions and unit trusts, has more than tripled in the last four years, from 136,000 in 1997, to 456,000 by December 2000.
ACCA’s report examines the strategies employed by funds when incorporating 'ethical values' into fund management. It suggests that ethical funds in Europe have the potential to significantly outperform similar non-ethical funds in a matter of years.
Commenting on the report, Roger Adams, ACCA executive director-technical, said: ACCA has long been working hard to encourage further social responsibility in business decision making. The ACCA UK Awards for Sustainability Reporting are an amalgamation of three long running ACCA ethical award schemes. The new awards aim to reward organisations which have shown a genuine commitment to reporting on the social, environmental and wider economic impacts of their activities.
Niklas Kreander of the University of Glasgow and author of the report remarked: The success of these schemes is very encouraging for investors because they allow individuals to be more discerning when making investment decisions, without the prospect of losing out financially. Similarly fund managers can also rest assured that the market for ethical investing is thriving.
By Janet Du Chenne
This week's edition of Professional Pensions is out now
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