The ethical point of view

David Field

Check out our Shop and Compare Search!

Spending on ethical products has increased substantially in the UK over the past few years, whether it be simply fair-trade coffee or putting money into a fund that will not invest it in 'unethical' areas, such as arms. A lot of fuss has been made about the sector because, with a more global outlook on the world, people are beginning to care about where they put their money.

And at last it seems that financial institutions are beginning to recognise that demand, with more and more ethical investment options popping up to support those who want to do their bit to save the world when saving their money.

Recent research from the AA has shown that an increasing number of people planning to change their cars this year will be looking at more environmentally-friendly options and saving money now goes hand-in-hand with ethical choices. Vehicle tax is just one area in which the government is planning to crackdown on emissions by increasing the cost of keeping a gas-guzzling vehicle on the road, while potentially offering tax breaks to those in more environmentally-friendly modes of transport.

That's not to say the only way to save pennies is by buying an electric vehicle that will do no more than 50mph. Far from it - not only are today's technologies transforming the variety of eco-friendly vehicles available, there is now also a myriad of other ways to save the planet.

Gordon Brown in his latest - and widely believed to be last - Budget speech, revealed that the government would be paying attention to the future of the planet in the way it taxes people. So incentives for homes that are energy-efficient and employ renewable energy such as wind and solar power should get more people saving the planet by saving money.

But is it right to think the future of the environment comes from tugging at our purse strings?

Most people these days recognise that there is a need to save the planet, but few are willing to give up lavish lifestyles to do so. Nobody is suggesting we go back to living in caves because it is more eco-friendly, but at the same time few seem genuinely willing to give up many of today's mod-cons to help ensure there is a sustainable future. This fact is borne out by the continued demand for low-cost air deals, despite increasingly high taxes designed to put people off flying.

So while the increasing prevalence of ethical funds and other ethical financial products may be welcomed, clearly they will need to be competitive with others in the marketplace if they are to succeed.

It seems that most Brits are still willing to pay a bit extra to cost the environment and environmental taxation policies could be only exacerbating the problem, as more people begin to think: "I'm doing my bit - I'm paying the higher price."

Only time will tell how long ethical products will survive, but unless there is a major change in the way people look at their financial situation in relation to the environment, it could well be that such products are little more than a passing trend.