Putting money into a community project gives ethical investors the chance to do everything from cutting carbon emissions to buying a stake in the village pub.
That’s not to say they don’t want a return on their cash but they’d rather it came from this kind of venture than traditional stocks and shares.
Colin Mather is a 67-year-old retired civil engineer. He’s put £1,000 towards a 50kw hydroelectric turbine shortly to be installed on the River Esk, near Whitby. He wants his money to help cut carbon emissions, produce renewable energy and fund green energy education programmes.
“We’re right beside a river, so a hydroelectric turbine was an obvious choice,” he says. “A group of us applied for planning permission and funds and we’ve had a lot of support locally.”
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Ruth Whitehead, of advisers Ruth Whitehead Associates, says: “An investment is about making money: we need to provide an income for ourselves in retirement and it’s a tough market out there for non-ethical funds, as well as ethical. Invest well in ways that represent your ethics, but aren’t too restricted by them, and you’ll get a better return on your money that you can then spend in ethical ways of your choice.”