How Green are your Finances?

19 Nov 2009 Tell a Friend

Ethical Finance is not currently a priority for more than half of Britons, according to research organisation EIRIS.  The online survey aimed to explore the attitudes of the British public towards ethical financial products in the aftermath of the credit crunch.   

One of the questions asked was whether those surveyed were interested in the ethical credentials of the products and services they buy.  Only 44% said that that they were, and three-quarters of this interested number would take the ethical aspect into consideration next time they looked for financial products and services.

However, the survey seems to have raised the issue of awareness; 62% of respondents could not actually name one ethical financial product or service, and surprisingly almost half of those who said that they would consider ethics as part of their decision-making could not name any either.

So what are the reasons for the lack of knowledge or interest in ethical finance?  According to the survey, 46% of people feel that "there is not enough information available on how they make a visible difference in the world", whilst 35% "do not trust the claims of financial providers".

When it comes to perception of the ethically-focused products, only 15% felt that they would perform less well than similar standard products.  This shows that although there is a lack of concrete awareness about the products available in the market, people do feel generally positive about ethical finance.

Mark Robertson, Communications and Development Manager at EIRIS said: 'Our survey provides firm evidence of growing interest in ethical finance, suggesting that the message that it is possible to both make money and make a difference when investing ethically is starting to get through to consumers. But levels of awareness, trust and confidence in ethical finance are low. The industry must respond with greater transparency and provide more information on how saving and investing can make a positive difference'.

A new website launched by EIRIS, www.yourethicalmoney.org aims to make it easier for consumers to make ethical and environmentally-friendly choices in their finances.  Users can search the site for bank accounts, investment opportunities, credit cards, pensions and other products that match their ethical concerns.  There are also tools and letter template for those who wish to make an active difference.