Investors turning to ethical products at accelerating rate

Consumers paid 19.2bn into ethical savings accounts and investment products during the year, a 34 per cent jump on the 14.3bn saved in them during the previous 12 months, according to Co-operative Financial Services (CFS).

The group said the rise was more than double the 15 per cent increase in savings and investments seen across the entire market during the same period.

The biggest in-flow of money was into ethical investments, with this rising by 40 per cent to 9.5bn during the year, while ethical banking deposits rose by 31 per cent to 9bn – well up on the four per cent growth recorded in total banking deposits during the year.

There was also a 19 per cent rise in the amount of money held with credit unions or invested in ethical stocks to 657m.

Tim Franklin, chief operating officer at CFS, 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 per cent last year."

The amount of money in ethical financial products has soared nearly four-fold during the past decade, rising from 5.1bn in 1999 to 19.2bn at the end of last year.

The biggest increase was in the amount people held in ethical banking products, with this jumping by 423 per cent to 9bn.

Meanwhile, separate research from Uksif, the sustainable investment association, found 54 per cent of people with investments said they would like their money to be used to make a difference, as well as to earn them a return.