An alternative to ethical funds is to choose a sustainable fund. These combine many of the benefits of an ethical fund with a more positive approach in that they invest in companies that positively improve the environment and quality of human life, seeking to break new ground in terms of environmental and social performance.

To ate sustainable funds have outperformed the market (but there is no guarantee that this will continue). This is thought to be because the management attitude and control required to manage companies that take sustainability seriously means that the company performs better as a whole, as there is an increased awareness of the future of the business (if you think about it, sustainability simply means the future for us all).

Companies offering sustainable funds include:

Virgin Money Climate Change Fund

Norwich Union

First State

CIS Sustainable Leaders Trust

For more information try Sustainable Investment , or Sustainable Investing.