Press Releases and Comment
Surge in Demand for Ethical Investments Following Stern Report
13 November 2006
Analysis by Brewin Dolphin Securities reveals that during the six months prior to publication of the Stern Report, there was a threefold increase in interest in its ethical investment service among private clients. Since the report was published on 30 October, there has been a further surge in demand for ethical stocks or funds, says the UK’s largest independent portfolio manager.
In a recent study, Brewin Dolphin found that over three million people * were considering investing in an ethical stock or fund over the following 12 months. The survey revealed that interest in ethical investing is particularly high among older investors (aged 65+), with 12% considering this approach compared to 7% nationally.
Earlier this year, Brewin Dolphin launched an ethical investment service for private clients called Ethical Portfolio Management. Offered through a partnership between Brewin Dolphin and the Ethical Investment Research Service (EIRIS), it is targeting the estimated £10 billion worth of ethical investments in the UK.
The Ethical Portfolio Management service is based on a series of ethical criteria found to be the most popular among Brewin Dolphin’s existing clients and seeks to provide them with a balanced portfolio. There is also a facility for private clients to use their own particular standards or views, if those within the primary portfolio management service are not appropriate.
Charlotte Black, Director of Corporate Affairs at Brewin Dolphin Securities said,
“Clearly the publication of Stern’s report has resonated with private investors who are increasingly looking for ethical investment opportunities. We recognise that ethical considerations now rank much higher in the minds of many clients. The good news is that there are plenty of opportunities to make sound investment decisions whilst also supporting the environment or indeed discriminating against polluters. As a result, we expect our ethical investment service will continue to attract growing numbers of clients.”
“We enable clients to invest all or part of their portfolio according to their own ethical or environmental views, rather than having to buy predetermined ethical funds. We believe that by overlaying an ethical profile on our broader research capability, we can generate a portfolio of UK equities and bonds for clients that will provide the opportunity for a good level of growth in both capital and income.”
Professor Tom Burke CBE – author of The Green Capitalists and a Director of the Green Alliance said:
“I am pleased to see the results of this research and that investors are becoming more aware and enthusiastic about making ethical judgements for their investments. Brewin Dolphin’s portfolio service, where you can choose which issues to support or boycott, should add to the interest level.”
Regionally, Londoners are most likely to invest in ethical stocks and funds over the next 12 months (14%) compared to just 2% of investors from the East Midlands.
| Are you considering investing in an ethical stock or fund over the next 12 months? | Proportion of region | Number of people |
|---|---|---|
| Greater London | 4% | 985,000 |
| East Anglia | 8% | 170,000 |
| South-East | 8% | 633,000 |
| Yorkshire / Humberside | 8% | 310,000 |
| West Midlands | 8% | 333,000 |
| South-West | 7% | 199,000 |
| Wales | 6% | 173,000 |
| North-East | 5% | 158,000 |
| North-West | 4% | 142,000 |
| Scotland | 4% | 214,000 |
| East Midlands | 2% | 54,000 |
| GB national | 7% | 3.37 million |
| Source: Brewin Dolphin | ||
* TNS was commissioned to conduct research via telephone survey with a representative sample of 1013 GB adults aged 16+.
No investment or service is suitable in all cases. The value of your investment and any income from it may fall and you may get back less than you invested. If you have any doubt about the suitability of the Brewin Dolphin Ethical Portfolio Management Service, please contact Brewin Dolphin for advice.
For further information please contact:
- Charlotte Black
Brewin Dolphin Securities
0845 213 3331 - Patrick Evans / Alistair Kellie / Ewan Robertson
Citigate Dewe Rogerson
020 7638 9571
Notes to Editors:
About BDS Ethical Portfolio
Management:
Brewin Dolphin has designed a set of 17 criteria that will be used
to assess companies from across FTSE All World Developed Index.
This information is used in conjunction with Brewin Dolphin’s
own in-house research to provide clients with a segregated ethical
portfolio based on their individual standards.
http://www.brewin.co.uk/PrivateClients/InvestmentManagement/OtherServices/EthicalInvestment.aspx
Tom Burke,
CBE
Tom is an Environmental Policy Adviser to Rio Tinto plc and a
Visiting Professor at Imperial College.
He is a member of the Council of English Nature; statutory advisor to the British Government on biodiversity; and co-chairman of the Anglo-German Environment Forum. He was recently appointed an Honorary Professor in the Faculty of Laws at University College, London and is a Fellow of the Royal Society of Arts.
Since 1991 he has been a member of the Advisory Committee to the Business in the Environment Task Team. He is on the Advisory Council of the Earth Centre and advises a number of other environmental organisations. He is a founding member of the Council of the Institute of Environmental Management and served as Green Alliance's Director from 1982-91.
He currently serves on the American Chemistry Council’s Leadership Dialogue and on the Advisory Board for Conservation International’s Centre for Environmental Leadership in Business in the US.
In 1993 he was appointed to United Nations Environment Programme's `Global 500' roll of honour. In 1997, he was appointed CBE for services to the environment.