How effectively is the financial services industry catering to the ever-increasing demand for ethical financial services?
Andrew Simms, Sargon Nissan, Victoria Johnson
18 September 2007
Going Green? provides a comprehensive review of the current state of ethical finance services in the UK.
It finds that while there is an ever-greater choice of ethical finance products, serious barriers to growth and gaps in the sector still remain.
Despite the fast development of the sector, nef finds that ethical finance providers are still falling far short of meeting the growing demand from consumers who want to save and invest according to their ethical principles.
The report finds that: Ethical financial products fall far short of meeting the demand for ethical financial services, the sector is yet to overcome the key challenges needed to become mainstream, the ambition of ethical finance initiatives stills falls far short of achieving the kind of impact most ethical consumers wish to see.
NEF recommends that in order to scale up and meet consumer demand for ethical financial products: mainstream banks need to view ethical finance as a lucrative potential market for premium products attracting conscientious consumers, products need to be packaged and targeted with a broader appeal in mind, the ethical financial sector should develop a common label and web-based point of information,
Pension funds with ethical commitments should realise their power and influence with companies to bring about positive change and that well-designed tax incentives, or Government personal savings initiatives, could attract more finance to ethical investment.
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