skip to main content
Investment ISAs / Ethical ISAs /

ESG ISA

What is a ESG ISA?

Invest in line with your principles

Ethical ISAs

Sustainable Leaders

from Royal London

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: companies that are likely to benefit from measures taken to improve the environment, human welfare and quality of life.
  • Invest From: £25 a month or any lump sum
  • Investment Options: The core of the investment portfolio consists of shares in companies involved wholly or in part in the manufacture of products, industrial processes or the provision of services associated with improving the environment and the enhancement of human health and safety.

Why we like it: A consistent performer this popular £1.7bn fund run by triple A Citywire rated fund manager Mike Fox works on a “best ideas” basis with 40 to 50 company holdings . The fund applies both negative and positive screening. Sectors considered more favourably include healthcare and technology, whereas areas such as commodities are generally avoided. There is also a focus on long-term themes and trends such as infrastructure and changing demographics. The fund has reasonable ongoing charges of 0.76% pa for an actively managed fund.

This fund is available via: Interactive Investor investment platform »

Important: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

ii ACE 40 investments

from Interactive Investor

ISA Option
Allows ISA Transfers
Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: 140+ Ethical Investments
  • 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 broad variety of markets.

Why we like it: The UK's first rated list of ethical investments to help you align investments with your personal values. Building your investment portfolio can be tough – and it is even more difficult when you want to choose ethical investments. That can mean a lot of research. The ii ACE 40 makes the job easier for you. Interactive Investor select 40 funds, investment trusts and ETFs from over 140 that they believe offer high-quality choices, across a broad variety of markets.

Important: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

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:

  • Environmental track record
  • Energy consumption
  • Policy on climate change
  • Waste management
  • Community engagement
  • Human rights record
  • Employee relations policy
  • How the business is run
  • Diversity of the management team
  • 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.

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.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

Cheapest ETF Funds For Your ISA

1st March 2021

In this article we look at some of the cheapest ways to access markets across the globe using your 2020-21 and 2021-22 ISA allowance.

Newsletter Signup

Sign up to our Newsletter to get exclusive news and offers direct to your inbox.

About us

ISA.co.uk is a trading style of Fair Investment Company.

We've been comparing and recommending ISAs for many years so you can trust you're in good hands.

About us

4.74 Average

23 Reviews

Jen

I found the way the different options are presented very clear - much more useful than some other comparison sites. I sent it to my daughter as well.

Paul

Very informative, find myself a good ISA account with best return in terms of interest.

Sue

Easy to use website and up to date. Saved the link on my tablet.

Rob Holden

The website was very useful and informative.

Andrew Johnson

ISA can be confusing at first and this site includes a useful and helpful introduction into the world of ISAs

Crowd2Fund

Excellent website - clear and helpful information about different products - and a trustworthy partner.

Sue

Easy to use website and up to date. Saved the link on my tablet.

Steve

Really simple to use and all the information was clear with lots of products available. The interest calculator was really handy too. Have bookmarked and will definitely use again.

Hannah Gordon

This was a really user-friendly site, and was very helpful when it came to comparing accounts and choosing my 2016 ISA.

Sue

Easy to use website and up to date. Saved the link on my tablet.

Anonymous

If you wish to invest in an ISA this site has it all. A super comprehensive range of simply explained products from all the major companies.

Cristina Iacob

Very knowledgeble company with an extensive range of services, a great website with loads of useful information.

Anonymous

Nice graphics and easy to navigate

Dr Alan Rogan BSc PhD FCIOB FCABE Eur Ing

Good advice and professional approach

Razvan

Very helpful for getting my annual ISA

Jonny Doulton

Clear, concise and very professional outfit with an excellent choice of market leading deals.

Paul Tissington

ISA.co.uk not only helped narrow down my choices for a Junior ISA but also provided additional practical information that helped demystify the whole process.

Sunil Karadia

Just the site I needed, I have been looking for a suitable ISA for a while, but as there are so many to choose from, find it difficult to find the right one for me.

James Weatheritt

I found the information on ISA.co.uk very helpful and easy to understand. The site is easy to navigate and find what you're looking for.

Lisa Holden

I found ISA.co.uk very insightful and easy to navigate through. The content was useful and helped me make my ISA decision.

Neta Pourhosseini

I thought the information provided was easy to understand and very informative, I would recommend to friends for deffinite.