Other Ethical Finances
There are a wide range of financial products which are run along ethical principles - everything from bank accounts to highly specialised areas of investment. This section discusses the financial vehicles available for ethical investors, savers, borrowers and those looking to take out insurance. Given the complexity of some of these products, we would recommend that you seek advice from us before purchasing them.
Self Invested Personal Pensions (SIPPs) allow you wider investment powers which enable you to select from a wide range of funds- including ethical funds. You can also access ethical funds from Stakeholder pensions which have lower charges, but less choice as to which funds to invest in.
There are mortgages available which will offset your carbon emissions by investing in tree planting initiatives. You also need to consider the lending track record of the lender in terms of their lending policies.
There are a wide range of ethical funds available to invest in an ISA. You can purchase ethical ISAs on-line, at discounted rates, using our Fund Supermarket which allows you to spread the risk and diversify by investing in a wide range of funds.
Venture Capital Trusts (VCT's) allow you to access smaller companies which may not be listed on a stock exchange. There are VCT's which specialise in ethical companies- such as wind farms and renewable energy.
Enterprise Investment Schemes (EIS's) are similar to Venture Capital Trusts (above) and allow investment in unquoted stocks, but with different tax breaks. It is possible to invest in EIS's which have an ethical bias.
There are many ways to mitigate inheritance tax (IHT) whilst investing in ethical funds. One of these methods involves investing in shares listed on the Alternative Investment Market (AIM), which become free of IHT after two years. These portfolios are screening to ensure they consist of ethical companies.
There are several companies who have launched a variety of general insurance policies which can be considered ethical. This ranges from car insurance to buildings and contents cover.
There are several ethical bank accounts available where lending policy is in line with internationally recognised standards of fair lending.
Affinity credit cards are available which donate commissions to worthy causes or organisations.