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Ethical Investing

Ethical investing

A strategy that seeks to profit from investments that are in line with your ethical principles.

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To help you identify the socially responsible and environmental funds, investment trusts and ETFs that best reflect your own values, we have identified more than 140 ethical investment options available on our platform. The list has been built in collaboration with independent experts, SRI Services, and using our data provider Morningstar. This is an extensive index of available ethical options, including the 30 best-in-class investments that make up our rated ACE 30.

Thankfully, ethical investment does not have to be difficult or mean you must sacrifice returns. Yes, the list of possible investments is reduced when investing for good, but our article on ethical investment returns looks at why this does not have to compromise performance.

We have also produced a jargon buster to help you get a better understanding of ethical investing and the funds you are considering.

Each ethical fund in the list is indexed by asset class and placed into one of three key investment styles, carefully chosen to avoid jargon: Avoids, Considers and Embraces. These are referred to as our ii ACE ethical styles. Where an ethical investment fund's manager adopts more than one style, we use the strongest ethical category that applies. In short:

Avoids: Funds that focus on simply excluding companies, sectors or specific business practices.

Considers: Funds that carefully consider an often wide range of ethical and/or environmental, social and governance (ESG) issues or themes when balancing positive and negative factors.

Embraces: Funds that focus on companies delivering positive social and/or environmental outcomes.

Within each of these groups there is great variation with funds applying different levels and combinations of avoidance, positive stock selection and engagement activity aimed at delivering higher business standards.

Our table has two further categories.

The Fund EcoMarket (FEM) category, produced by SRI Services, a specialist independent company devoted to advancing sustainable and responsible investment (SRI) - which delivers a more granular steer to the core issues and approaches the manager focuses on.

The Morningstar Sustainable Fund Type, which identifies sustainable investments that, by prospectus, either state that they use ESG criteria as a key part of their security-selection process or indicate that they pursue a sustainability-related theme or seek measurable positive impact alongside financial return.

Full definitions of the style and names used can be found here.

Please note: our aim is for our long list to be as comprehensive as possible as we recognise that different people have different aims and opinions. Ethical investment is uniquely personal, meaning that investors may take a significantly different view of an investment.

The information we provide in the Ethical Investments long list does not constitute a “personal recommendation”. You should ensure that any investment decisions you make are suitable for your personal circumstances. Past performance of the underlying constituents is not a guarantee of future performance. Remember, the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest.

"We have collaborated with ethical experts, SRI Services, to identify investments on the ii platform that incorporate an ethical, environmental or sustainable policy into their investment process. This list will be updated as new funds, trusts and ETFs are launched with an ethical or sustainable approach. We hope this list serves as a starting point from which you will need to do your own research to ensure your choices align with your values and priorities."

Moira O'Neill, Head of Personal Finance at interactive investor

We asked our Head of Investment, Rebecca O'Keeffe, to answer questions about the Ethical investment list and how to start investing - click here to find out more.

Ethical investments long list

UK equities

Name

ii ACE ethical style

Fund EcoMarket (FEM) category

Morningstar Sustainable Fund Type

ASI Responsible UK Equity I Acc Embraces Ethically Balanced ESG Focus
ASI UK Ethical Plat 1 Acc Considers Ethically Balanced ESG Focus
BMO Responsible UK Equity 2 Inc Considers Ethically Balanced ESG Focus
Castlefield B.E.S.T Sust UK SmComs Instl Considers Sustainability Themed ESG Focus
EdenTree Amity UK B Considers Ethically Balanced ESG Focus
Kames Ethical Equity GBP B Acc Avoids Negative Ethical ESG Focus
L&G Ethical I Acc Considers Sustainability Themed ESG Focus
L&G Future Wld Gender Lead UK Idx I Acc Considers Social Themed Impact
Liontrust Sust Fut UK Gr 2 Net Acc Considers Sustainability Themed ESG Focus
Liontrust UK Ethical 2 Net Acc Considers Negative Ethical ESG Focus
Premier Ethical C Acc Considers Ethically Balanced ESG Focus
Royal London Sustainable Leaders C Acc Considers Sustainability Themed ESG Focus
Threadneedle UK Sustainable Equity Z Acc Considers Sustainability Themed ESG Focus
UBS ETF MSCI UK IMI SRI GBP A dis Avoids Negative Ethical ESG Focus

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UK equity income

Name

ii ACE ethical style

Fund EcoMarket (FEM) category

Morningstar Sustainable Fund Type

BMO Responsible UK Income 2 Acc Considers Ethically Balanced ESG Focus
Castlefield B.E.S.T. Sust Inc Instl Considers Sustainability Themed ESG Focus
Janus Henderson UK Responsible Inc Considers Ethically Balanced ESG Focus
Jupiter Responsible Inc Fd I Inc Considers Environmentally Themed ESG Focus
Trojan Ethical Income Fund O Acc Avoids Negative Ethical ESG Focus
Unicorn UK Ethical Income B Acc Avoids Negative Ethical ESG Focus

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Global equities

Name

ii ACE ethical style

Fund EcoMarket (FEM) category

Morningstar Sustainable Fund Type

ASI Ethical World Equity I Acc Considers Ethically Balanced ESG Focus
ASI Multi-Mgr Ethical I Acc Considers Ethically Balanced ESG Focus
Baillie Gifford Global Stewardship B Acc Considers ESG Plus ESG Focus
Baillie Gifford Positive Change B Acc Embraces Sustainability Themed Impact
Baillie Gifford Rspnb Glb Eq Inc B Inc Considers ESG Plus ESG Focus
BGF Sustainable Energy D4 GBP Embraces Sustainability Themed Sustainable Sector
BMO Responsible Global Equity 2 Acc Considers Ethically Balanced ESG Focus
BMO Sustainable Opports Glb Eq C Acc Considers Sustainability Themed ESG Focus
BNY Mellon Sus Global Eq Instl W Acc Considers Sustainability Themed ESG Focus
EdenTree Amity International B Considers Ethically Balanced ESG Focus
FP WHEB Sustainability C Embraces Sustainability Themed ESG Focus
Franklin LibertyQ Global Equity SRI ETF GBP Considers Ethically Balanced ESG Focus
Fundsmith Sustainable Equity I Acc Considers Sustainability Themed ESG Focus
Hermes Global Equity F GBP Acc Considers ESG Plus ESG Focus
Hermes Impact Opportunities Eq X GBP Acc Embraces Sustainability Themed Impact
Impax Environmental Leaders XGBP Acc Embraces Environmentally Themed Sustainable Sector
Impax Environmental Mkts Ire X GBP Acc Embraces Environmentally Themed Sustainable Sector
Impax Environmental Markets Ord Embraces Environmentally Themed Sustainable Sector
iShares Dow Jones Glb Sust Scrn ETF $Acc GBP Avoids Sustainability Themed ESG Focus
iShares MSCI World Islamic ETF USD Dist GBP Avoids Faith Based Shariah Focus
Janus Henderson Global Sust Eq I Acc Considers Sustainability Themed ESG Focus
Jupiter Ecology I Inc Embraces Environmentally Themed Sustainable Sector
Jupiter Green Ord Embraces Environmentally Themed Sustainable Sector
Kames Global Sustainable Eq GBP C Acc Considers Sustainability Themed ESG Focus
L&G Future World Sustainable Opps I £Acc Considers Sustainability Themed ESG Focus
L&G Future Wld Clmt Chg Eq Fct Idx I Acc Considers Environmentally Themed Impact
M&G Global Select GBP I Acc Considers ESG Plus ESG Focus
M&G Positive Impact Sterling I GBP Acc Embraces Sustainability Themed Impact
Menhaden Ord Embraces Unclassified Impact
Montanaro Better World GBP Embraces Sustainability Themed Impact
Pictet - Global Envir Opps I dy GBP Embraces Environmentally Themed Sustainable Sector
Quilter Investors Ethical Eq R (GBP) Acc Avoids Negative Ethical ESG Focus
Rathbone Global Sustainability I Acc Considers Sustainability Themed ESG Focus
Sarasin Responsible Glb Eq Stg Hdg P Acc Considers Sustainability Themed ESG Focus
Sarasin Responsible Global Equity P Acc Considers Sustainability Themed ESG Focus
Stewart Investors Wldwd Sustbl B Acc GBP Considers Sustainability Themed ESG Focus
Triodos Sustainable Equity GBP K Ret Acc Embraces Sustainability Themed Impact
Triodos Pioneer Impact GBP KRet Acc Embraces Sustainability Themed Impact
UBS ETF Global Gender Eqlty USD A Acc GBP Embraces Social Themed Impact
UBS ETF MSCI ACWI Sclly Rspnb H £ A Dis GBP Considers Unclassified ESG Focus
UBS ETF MSCI World SRI USD A dis GBP Avoids Negative Ethical ESG Focus
Vanguard SRI Global Stock GBP Acc Avoids Negative Ethical ESG Focus

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Emerging markets

Name

ii ACE ethical style

Fund EcoMarket (FEM) category

Morningstar Sustainable Fund Type

iShares MSCI EM SRI ETF USD Acc GBP Avoids Unclassified ESG Focus
Pictet-Emerg Mkt Sustainable Eq I GBP Considers ESG Plus ESG Focus
Stewart Investors Glbl EM Sust B Acc GBP Considers Sustainability Themed ESG Focus
UBS ETF MSCI Emerging Mkts SRI USD A dis GBP Avoids Negative Ethical ESG Focus

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Asian equities

Name

ii ACE ethical style

Fund EcoMarket (FEM) category

Morningstar Sustainable Fund Type

Alquity Indian Subcontinent GBP Y Considers Unclassified ESG Focus
Impax Asian Environmental Markets IRL X Embraces Environmentally Themed Sustainable Sector
Pacific Assets Ord Considers Sustainability Themed  
Stewart Investors AsiaPac Ldrs B Acc GBP Considers Sustainability Themed  
Stewart Investors AsiaPac Sust B Acc GBP Considers Sustainability Themed ESG Focus
Stewart Inv Indian Sbctnt Sustnby B GBP Considers Sustainability Themed ESG Focus
UBS ETF MSCI Pacific SRI USD A dis GBP Avoids Negative Ethical ESG Focus

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European equities

Name

ii ACE ethical style

Fund EcoMarket (FEM) category

Morningstar Sustainable Fund Type

ASI European Ethical Equity Plat 1 Acc Considers Ethically Balanced ESG Focus
EdenTree Amity European B Considers Ethically Balanced ESG Focus
iShares MSCI Europe SRI ETF EUR Acc GBP Avoids Unclassified ESG Focus
Liontrust Sust Fut Eurp Gr 2 Net Acc Considers Sustainability Themed ESG Focus
M&G Pan European Select GBP I Acc Considers ESG Plus ESG Focus
SVM All Europe SRI B Acc Embraces Responsible Ownership ESG Focus
UBS ETF MSCI EMU SRI EUR A dis GBP Avoids Negative Ethical ESG Focus
Vanguard SRI European Stock GBP Acc Avoids Negative Ethical ESG Focus
Virgin Climate Change Considers Environmentally Themed Impact

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US equities

Name

ii ACE ethical style

Fund EcoMarket (FEM) category

Morningstar Sustainable Fund Type

Brown Advisory US Sustainable Growth Considers Sustainability Themed ESG Focus
iShares MSCI USA Islamic ETF USD Dist GBP Avoids Faith Based Shariah Focus
iShares MSCI USA SRI ETF USD Acc GBP Avoids Negative Ethical ESG Focus
UBS ETF MSCI USA SRI USD A dis GBP Avoids Negative Ethical ESG Focus

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Global bonds

Name

ii ACE ethical style

Fund EcoMarket (FEM) category

Morningstar Sustainable Fund Type

iShares € Corp Bond SRI 0-3yr ETF € Dist Avoids Negative Ethical ESG Focus
Lyxor Green Bond (DR) ETF C EUR GBP Embraces Environmentally Themed Impact
PIMCO GIS Global Bond ESG Instl GBPH Inc Considers ESG Plus ESG Focus

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Sterling bonds

Name

ii ACE ethical style

Fund EcoMarket (FEM) category

Morningstar Sustainable Fund Type

ASI Ethical Corp Bond Inst Inc Considers Ethically Balanced ESG Focus
BMO Responsible Sterling Corp Bd 2 Inc Considers Ethically Balanced ESG Focus
EdenTree Amity Sterling Bond B Considers Ethically Balanced ESG Focus
EdenTree Amity Short Dated Bond B Considers Ethically Balanced ESG Focus
Kames Ethical Corporate Bond GBP B Acc Avoids Negative Ethical ESG Focus
Liontrust Sust Fut Corp Bd 2 Grs Inc Considers Sustainability Themed ESG Focus
Rathbone Ethical Bond I Acc Considers Ethically Balanced ESG Focus
Royal London Sustainable Mgd Inc C Acc Considers Sustainability Themed ESG Focus
Royal London Ethical Bond Z Inc Avoids Negative Ethical ESG Focus
Sarasin Responsible Corporate Bond P Acc Considers Sustainability Themed ESG Focus
Threadneedle UK Social Bd Z Grs Acc£ Embraces Social Themed Impact

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Money market

Name

ii ACE ethical style

Fund EcoMarket (FEM) category

Morningstar Sustainable Fund Type

Royal London Cash Plus Y Acc Avoids Negative Ethical  
Royal London Enhanced Cash Plus Y Acc Avoids Negative Ethical  
Royal London Short Term Money Mkt Y Acc Avoids Negative Ethical  

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Property

Name

ii ACE ethical style

Fund EcoMarket (FEM) category

Morningstar Sustainable Fund Type

Civitas Social Housing Ord Embraces Social Themed Impact
Impact Healthcare REIT Embraces Social Themed Impact
Sarasin IE Sust Glb Rl Est Eq GBP P Acc Embraces Sustainability Themed ESG Focus
Triple Point Social Housing REIT Ord Embraces Social Themed Impact

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Specialist

Name

ii ACE ethical style

Fund EcoMarket (FEM) category

Morningstar Sustainable Fund Type

Bluefield Solar Income Fund Embraces Environmentally Themed Sustainable Sector
Foresight Solar Ord Embraces Environmentally Themed Sustainable Sector
Foresight Solar & Infrastructure VCT Embraces Environmentally Themed Sustainable Sector
FP Foresight UK Infras Inc A GBP Inc Considers Unclassified Sustainable Sector
Gore Street Energy Storage Fund Ord Embraces Environmentally Themed Sustainable Sector
Greencoat UK Wind Embraces Environmentally Themed Sustainable Sector
Guinness Sustainable Energy X GBP Acc Embraces Environmentally Themed Sustainable Sector
iShares Global Clean Energy ETF USD Dist GBP Embraces Environmentally Themed Sustainable Sector
iShares Global Water ETF USD Dist GBP Embraces Environmentally Themed Sustainable Sector
John Laing Environmental Assets Ord Embraces Environmentally Themed Sustainable Sector
NextEnergy Solar Ord Embraces Environmentally Themed Sustainable Sector
Pictet-Clean Energy I dy GBP Embraces Environmentally Themed Sustainable Sector
Pictet-Nutrition I dy GBP Avoids ESG Plus Impact
Pictet-Water I dy GBP Embraces Environmentally Themed Sustainable Sector
Renewables Infrastructure Grp Embraces Environmentally Themed Sustainable Sector
Sarasin Food & Agriculture Opps P Acc Avoids ESG Plus  
SDCL Energy Efficiency Income Ord Embraces Environmentally Themed Sustainable Sector
Syncona Ord Embraces Social Themed  
Triple Point Income VCT C Embraces Unclassified Sustainable Sector
US Solar Fund Ord Embraces Environmentally Themed Sustainable Sector
Ventus VCT 2 D Ord Embraces Environmentally Themed Sustainable Sector
Ventus VCT Ord Embraces Environmentally Themed Sustainable Sector
Ventus VCT Embraces Environmentally Themed Sustainable Sector
VT Gravis Clean Energy Income C GBP Acc Embraces Environmentally Themed Sustainable Sector

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Mixed asset

Name

ii ACE ethical style

Fund EcoMarket (FEM) category

Morningstar Sustainable Fund Type

7IM Sustainable Balance C Acc Considers Sustainability Themed ESG Focus
AXA Ethical Distribution Z Acc Avoids Negative Ethical ESG Focus
Climate Assets B GBP Acc Considers Sustainability Themed ESG Focus
Janus Henderson Instl Gl Rpnsb Mgd I Acc Considers Ethically Balanced ESG Focus
Kames Ethical Cautious Managed GBP B Acc Avoids Negative Ethical ESG Focus
Liontrust Sust Fut Glbl Gr 2 Net Acc Considers Sustainability Themed ESG Focus
Liontrust Sust Fut Defesv Mgd 2 Net Inc Considers Sustainability Themed ESG Focus
Liontrust Sust Fut Absolute Gr 2 Net Acc Considers Sustainability Themed ESG Focus
Liontrust Sust Fut Cau Mgd 2 Net Inc Considers Sustainability Themed ESG Focus
Liontrust Sust Fut Mgd 2 Net Inc Considers Sustainability Themed ESG Focus
Royal London Sustainable Div C Acc Considers Sustainability Themed ESG Focus
Royal London Sustainable Mgd Gr C Acc Considers Sustainability Themed ESG Focus
Royal London Sustainable World C Acc Considers Sustainability Themed ESG Focus

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Risk Warning: The price and value of investments and their income fluctuates: you may get back less than the amount you invested. If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial adviser. Please note, the tax treatment of these products depends on the individual circumstances of each customer and may be subject to change in future. If you are uncertain about the tax treatment of the products you should contact HMRC or seek independent tax advice.

 

Invest for good with the UK’s first rated list of ethical investments.

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Ethical investing
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