Ethical consumers do not always become ethical investors, suggesting more advice is needed to overcome perceptions that ethical investments don’t perform well, a survey by Oikocredit has revealed.

A poll by the microfinance provider, conducted among consumers in the UK, found that 61 per cent of women and 53 per cent of men prefer to buy ethically sourced goods, while only 56 per cent of women and 44 per cent of men would seek ethical investments.

More than half, 58 per cent, of respondents, said the level of financial return was the most important factor when investing their money, while only 9 per cent cited ethical concerns.

Patrick Hynes, UK representative for Oikocredit, said: “Most people think ethically when buying products, but seem to take a different approach when it comes to investing their money. This might be because they are simply not aware of the investment options which create a positive social impact. “

“Given many people’s preference for acting in a way that is ethical, those with money to save should consider development finance. This presents investors with the opportunity to attract a positive return on their investment and deliver a positive social impact.”

Ruth Whitehead, principal of London-based Ruth Whitehead Associates, said it would make sense for people who want ethically sourced produce to invest in a way that reflects their beliefs.

She said: “Ethical practice should permeate ever single aspect of our lives. It does for our clients.

“They shop ethically and vote ethically. It also depends on the definition of ethics. As far as my clients are concerned, the only way is ethics.”

By Marc Shoffman | Published FT ADVISOR May 09, 2012 |