Ethical Finance

Ethical finance is a long established process of investing and financial management along values based principles.

In the latter part of the 20th century, the market for these investments in western developed economises has developed steadily. Growing themes around sustainability, climate change and social justice, combined with concerns arising from the 2008 financial crisis, has led to increased debate and interest in a more responsible financial sector that operates on a more transparent and ethical basis.

Definition

With no universally accepted definition of ethical finance in existence, the EFH team developed a definition based upon our collective view of the ethical finance world. As such, the definition we use for ethical finance, which underpins our work, is:

“A system of financial management or investment that seeks qualitative outcomes other than purely the management of returns. Outcomes sought may reflect ideas from faith, social, environmental and governance theories.”