Ethical investing in ISAs is about aligning money with values

Some savers are choosing ethical ISAs to avoid funding companies linked to human-rights abuses, and providers such as Triodos report growing deposits while ethical options can deliver lower returns and carry fees.

Some savers are balancing growth goals with personal values when choosing where to hold ISA savings. Meerat Kaur, who is Sikh, began seeking ethical ISA options in 2019 to avoid funding businesses she considers linked to oppression or inhumane conditions. She has about £65,000 across cash and stocks and shares ISAs and reported around 7% from the stocks product and 4.5% from the cash product. Triodos Bank and other providers are cited as examples, and experts note that ethical investing can involve lower returns and varying fees. Known details: - Meerat Kaur said her faith and anti-oppression values led her to research ethical ISA options and to use resources such as Ethical Consumer. - She found Triodos Bank, which offers cash and stocks and shares ISAs focused on sustainable projects, and reported her personal returns on those products. - Roger Hattam of Triodos Bank UK said deposits in sustainable ISAs are growing year on year and that some savers want their money to have environmental and social impact. - The article notes it is possible to build an ethical ISA from specialist funds on investment platforms, and mentions Interactive Investor's ACE 40 list of sustainable funds. - Rachel Springall of Moneyfactscompare.co.uk said awareness of ESG investing is rising and that fund charges and investment horizon affect outcomes. Summary: Providers report growing demand for sustainable ISAs while some savers accept lower returns to align investments with personal values. Undetermined at this time.