Green investors advised to check smallprint

Ethically-minded consumers are being urged to check the claims and policies of the green and socially responsible products offered by financial companies.

Mark Robertson, spokesperson for EIRIS – which conducts independent research into corporate responsibility and sustainability issues for investors – said consumers have to take the initiative.

"What we would suggest is that people look at the fund’s policy and see how exacting it is; whether or not it had distinct and concrete targets and policies that are easy to understand," he said.

In relation to the increasing range of ethical options open to consumers and companies, Mr Robertson added: "Ethical investment is not just about avoiding negative areas, that is one of the approaches, but also increasingly more funds now are looking at adopting positive criteria, so, as well as avoiding negative areas such as gambling and tobacco companies, they will work on engagement."

Some 47 per cent of women and 36 per cent of men would accept a lower return if their bank invested ethically, according to research conducted earlier this year by Which? magazine.