Do Well and Do Good in 2025

“Investing is not just about making your money grow but also about deciding what your money gets to support,” she adds. UK Investors Becoming More Ethical In recent years, UK investors have expressed growing interest in ethical investing – a concept that refers to making financial decisions that also take into account values such as the environment, social responsibility, and honesty in corporate practice.

In this guide, you’ll find out what ethical investing is and how to get started in the UK, together with a rundown of the tools and funds to consider and how to balance doing good with growing your wealth.

💡 What Is Ethical Investing?

Ethical investing is a strategy in which you select investments based on moral or social principles, as opposed to just the financial return. Here are the kinds of companies and funds that he is looking to back:

✅ Limit the damage to the environment

✅ Support fair wages and human rights

✅ Avoid controversial industries (such as tobacco, weapons, or fossil fuels)

✅ Advocate for diversity, sustainability and transparency

This area frequently intersects with related concepts such as:

investing in ESG (Environmental, Social and Governance) factors

Sustainable investing

Impact investing

Socially Responsible Investing (SRI)

🌱 What to Know About Ethical Investing in the UK

It follows a 2024 Financial Conduct Authority (FCA) report which found that more than 50% of UK investors under the age of 40 factor in ethical or sustainable considerations in their choice of investment.

Key drivers behind this trend:

Heightened awareness of the climate crisis

Increased corporate transparency

An appetite for impact investments

Gen Z and Millennial investors on the rise

Government and regulators support for green finance

It’s 2025, and ethical investing is no longer for the niche — it’s the movement.

🏦 How to Begin Ethical Investing in the UK

You don’t have to be a professional investor, or have a large portfolio, to join. Here’s how to begin:

✅ 1. Define Your Understanding of “Ethical”

Ethics are personal. Ask yourself:

Do you want to screen out any industries (fossil fuels, gambling, etc.)?

Do you want to back companies focused on climate change or that have a social impact?

Is it important if they are of a certain religious or cultural background?

✅ 2. Choose the Right Investment Platform

The majority of the largest UK platforms now provide ESG and ethical options.

Recommended platforms:

Platform	Key Features
Vanguard UK	Low-cost ESG funds and ETFs
Freetrade	App-based, supports ESG stocks and funds
Nutmeg	Robo-advisor with socially responsible portfolios
Hargreaves Lansdown	Wide fund selection, good research tools
Moneybox	Round-up savings and ethical investment options

✅ 3. Use a Stocks & Shares ISA

An ethical investment within a Stocks & Shares ISA, this is with tax-free gains.

Annual allowance for 2025: £20,000

Select ESG-rated funds or stocks

Lump sum or through monthly SIP’s

🧠 Tax efficiency + ethical impact = smarter investing.

🔍 What are the Types of Ethical Investment Options?

🔹 Ethical Funds and ETFs

These funds invest in dozens or hundreds of companies that have been screened according to ethical criteria.

Popular examples:

iShares MSCI World SRI ETF

Vanguard ESG Developed World All Cap Equity Index Fund The offer The Offer is for 0.765 of a unit in the Fund for every Ordinary Share.

Liontrust Sustainable Future Managed Fund

The vast majority of platforms offer ESG ratings or sustainability scores.

🔹 Green Bonds

They’re fixed-income investments supporting climate and environmental projects.

Issued by governments or corporations

Lower risk generally, for recurring income

Through some Socially responsible bond funds

🔹 Individual ESG Stocks

If you would rather be a stock picker, study companies with:

High ESG ratings (e.g. by Sustainalytics or MSCI)

Public sustainability reporting

Robust policies on diversity, emissions, or governance

Well-known ESG-rated corporations include Unilever, Microsoft and Ørsted.

⚠️Investing Ethically Not Better or Worse for Returns

One of the most widespread misconceptions is that ethical investing means sacrificing profit for principle.

Reality: Several research studies, by Morningstar and MSCI, among others, have found equivalent or better returns in ESG investments — particularly over the long term.

💬 Businesses that do right by people and the planet tend to make smarter long-term business choices.

🏁 The Bottom Line: Invest With Purpose by 2025

You can grow your wealth and help make the world a better place. It’s a powerful tool to link your financial goals with your personal values — whether that’s supporting environmental protection, social justice or responsible business practices.

In 2025 UK investors have more access than ever to funds, stocks and platforms created with ethics in mind. With instruments such as ISAs, robo-advisors and ESG-rated ETFs, it is easier than ever before to invest responsibly whilst achieving better returns at the same time.

So why not make your money a statement of the world you want to see?

Start today—and invest with intention.