What does the future hold for ethical investment?

Ethical investment has hit the headlines recently as figures have suggested that there has been a slight drop in interest.

Data from the Investment Management Association revealed that investors have withdrawn around £17 million from green funds since November 2011, calling into question whether investors want pure profit or whether or not the green credentials of sustainable investments still hold an additional value.

But many commentators have suggested that this drop is just a blip in what is actually a positive trend for the sector. Since the global recession, there have been growing levels of concern regarding the stability of traditional investments, with many people questioning the way in which their money is being used by the banks.

Sustainable investments, such as forestry, have benefited from this and EIRIS, a responsible investment research firm, has revealed that the amount of money invested in Britain's green and ethical retail funds is actually at a record high of £11.3 billion as the number of ethical investors has tripled over the past decade from 250,000 to three-quarters of a million.

Other banks have reported surges in applications for sustainable investments as scandals affecting the banking sector became big news.

All of this points to the continued health of alternative investments, such as sustainable forestry plantations, that offer investors something solid for their money as well as a return on their outlay in the future.