Ethical savings and investments rise by a third
Biggest annual increase in ethical finance for a decade
The amount of money saved or invested ethically by consumers has shown its biggest annual increase in a decade according to a new report released today on 6th November 2010 by Co-operative Financial Services (CFS).
Total money invested ethically rose 34 per cent to £19.2bn, from £14.3bn in the previous 12 months. In comparison, total deposits and investments grew 15 per cent over the same period.
Ethical investment increased by 40 per cent last year from £6.8bn to £9.5bn, compared to a 33 per cent increase in mainstream funds.
While ethical banking increased by 31 per cent over 12 months, from £7bn to £9bn – compared to 4 per cent growth in total banking deposits.
Monies held in credit unions and ethical stocks also increased 19 per cent from £552m in 2008 to £657m during 2009.
Tim Franklin, Chief Operating Officer, at Co-operative Financial Services said: “The growth that we're witnessing is evidence that in the wake of the financial crisis more consumers are considering the ethical as well as financial impacts of their money.
“While ethical finance has grown steadily over the decade there has clearly been a recent acceleration.
“This is something that we've experienced at The Co-operative Bank, with current account openings up 38% last year; a result of a consumer 'flight to trust.”
Over the ten year period from 1999 to 2009, ethical finance has enjoyed a near four-fold (373 per cent) hike from £5.1bn to the £19.2bn. This includes:
· A four-fold (423 per cent) lift in ethical banking from £2.1bn to £9bn,
· ethical investments up by more than three times (332 per cent) from £2.9bn to £9.5bn, and
· a rise from £150m to £657 (438 per cent) in money held in credit unions and ethical shares.
The figures coincide with National Ethical Investment Week which runs from 7th to 13th November. Led by UKSIF, the UK sustainable investment and finance association, the week aims to increase awareness of ethical finance.
See our buyers' guides to investing your money ethically:
ethical investments • savings accounts • current accounts • other money buyers' guides.
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