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Investment ISAs / Ethical ISAs /

ESG ISA

Invest in line with your principles

Investment ISAs put your capital at risk & you may get back less than you originally invested

Socially Responsible Portfolio

from Nutmeg

Allows ISA Transfers
  • Fund Choice: Nutmeg allow you to align your investments with your values. With continuous oversight from the Nutmeg in-house investment team, their SRI portfolios place an emphasis on environmental, social and governance factors. Capital at risk.
  • Invest From: Min. £500 single

Sustainable Stocks & Shares ISA

from Shepherds

Allows ISA Transfers
Regular Savings
  • Fund Choice: Invest in a brighter future for you and the world, with Shepherd's sustainable ISA. The fund aims to invest in innovative, sustainable companies that offer both the potential for long-term growth and a positive benefit to society. Capital at risk.
  • Invest From: £30 pm

Future World ESG UK Tracker

from Legal & General

Allows ISA Transfers
Regular Savings
  • Fund Choice: The Fund aims to track the performance of the Solactive L&G Enhanced ESG UK Index. Capital at risk.
  • Invest From: £25

Sustainable Leaders

from Royal London

Allows ISA Transfers
Regular Savings
  • Fund Choice: Invests in companies that are likely to benefit from measures taken to improve the environment, human welfare and quality of life. Capital at risk.
  • Invest From: £25 pm

Responsible Global Equity

from BMO

Allows ISA Transfers
Regular Savings
  • Fund Choice: Invests in companies whose operations are considered to be making a positive contribution to society and seeks to avoid companies which, on balance, are felt to be harming the world, its people or its wildlife. Capital at risk.
  • Invest From: £25 pm

Positive Change

from Baillie Gifford

Allows ISA Transfers
Regular Savings
  • Fund Choice: Actively managed fund that invests in global company shares where products or services make a positive impact on society or the environment. Capital at risk.
  • Invest From: £25 pm

Environmental Markets

from Impax

Allows ISA Transfers
Regular Savings
  • Fund Choice: Investment trust that invests predominantly in companies that provide, utilize, implement or advise upon technology-based systems, products or services in environmental markets, particularly those of alternative energy and energy efficiency, water treatment and pollution control, waste technology & resource management. Capital at risk.
  • Invest From: £25 pm

Better World

from Montanaro

Allows ISA Transfers
Regular Savings
  • Fund Choice: Actively managed Fund that seeks to invest in high quality companies whose products, services or behaviour are deemed to make a positive impact on society and which emphasize sound environmental, social and governance (ESG) practices. Capital at risk.
  • Invest From: £25 pm

Global Clean Energy ETF Tracker

from iShares

Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks companies in the clean energy sector. Capital at risk.
  • Invest From: £25 a month or any lump sum

ii ACE 40 investments

from Interactive Investor

Allows ISA Transfers
Regular Savings
  • Fund Choice: 140+ Ethical Investments. Capital at risk.
  • Invest From: £25 a month or any lump sum
  • Investment Options: A selection of 140+ funds, investment trusts and ETFs that they believe offer high-quality ethical investment choices, across a range of markets.

What is a ESG ISA?

A ESG ISA is an ISA where your money is used to invest in assets that come under the umbrella of investments that seek positive returns and a long term impact on the Environment, Social issues and business Governance.

Basically ESG funds seek to have a positive impact on the world.

Investing within an ISA wrapper allows any investment returns to be generated tax efficiently.

ESG funds typically invest in the companies involved in activities that deal with mitigating climate change and new technologies that seek to provide better prospects for the environment. 

They are suitable for people who are willing to leave funds in their ISA for long periods such as five years. They are also good for people who are willing to withstand a bit more fluctuation in the value of their fund.

What investments are likely to be considered for ESG investment?

A fund manager taking into account ESG principles means that environmental, socials and governance criteria will be at the top of the list when connsidering what to invest in.

For example when assessing a company to invest in a fund manager will look at:

  1. Environmental track record
  2. Energy consumption
  3. Policy on climate change
  4. Waste management
  5. Community engagement
  6. Human rights record
  7. Employee relations policy
  8. How the business is run
  9. Diversity of the management team
  10. Quality of the management team & potential conflicts of interest

ESG investing puts on a more even footing investing responsibly with the need to deliver investment returns for investors.

Why is ESG investing important?

According to the United Nations the world's population is growing at a rate of 83 million people per year. By the year 2050 it is calculated that there will be 9.9 billion people on our planet with over 25% aged 65+. 

The need to ensure that the planet can cope with this increasing dynamic on our finite resources is more important than ever.

ESG investing is becoming increasingly popular with a greater awareness by investors for the need to invest sustainably. There is now more than $21.4 trillion invested sustainably.

In the UK sustainable investment for 85% of 18 to 36 year olds sustainable investment is seen as an important factor when investing.

What is the difference between Ethical and ESG Investing?

Ethical investing tends to avoid companies that have a negative impact on the environment or society. In an ethical fund the manager will typically screen out companies involved in certain activities or industries e.g. oil and gas, tobacco.

With ESG investing fund managers typically focus on companies that are having a positive impact on the world, so its less black and white when it comes to the types of companies that might be included in a fund. 

This approach means that a company in the oil and gas sector for example which has a progressive approach to clean energy might be included.

FREE Guide

Could you profit from your principles?

Responsible investment means different things to different people. In this guide, we break down the jargon and look at some of the main ways you can align your principles with your investments. Find out more about:

  1. Stewardship, ESG, exclusions-based, and impact funds
  2. How responsible investment funds might perform
  3. How to pick shares that fit your moral compass

Request Hargreaves Lansdown FREE guide »

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

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Latest News

5 Considerations for Your Next Investment ISA

15th March 2021

You've decided to invest your savings into a Stocks and Shares ISA. You'll be using your tax-free ISA allowance for this year before the deadline, while also investing your money for your future. But what do you need to consider before opening an account? We've put together a list of our top five considerations for you to think about before you click "apply". 

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