12 Aug 2010 12:08:28

Green investment 'covers a wide range of techniques'

Green and ethical investments no longer centre around leaving some companies out of a stock portfolio, one expert has suggested.

Penny Shepherd, chief executive of UKSIF - the sustainable investment and finance association, said that sustainable investment now covers a wide range of investment techniques and is "fundamentally about making a positive choice".

Ms Shepherd said that this could include choosing the most responsible company in the sector, working with fund managers that encourage companies to improve their performance or investing in new "sunrise industries rather than sunset industries".

"We are in a situation where the new coalition government says it will be the greenest government ever [and] that should make a difference both to companies managing their social and environmental impact and those who provide them with the tools to do that better," she added.

The comments come after figures from the Investment Management Association showed that net retail sales of ethical funds in the second quarter of 2010 were at their highest level since the final three months of 2007.