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However, according to Penny Shepherd, chief executive of the UK Social Investment Forum a common misconception persists among consumers that investing in ethical companies must be prohibitive and result in poorer returns.
Ms Shepherd claimed there is growing evidence - such as the increasing popularity of ethical and environmental products - that it makes financial sense to invest in companies that are socially responsible.
"We believe that the underlying social trends are such that increasing numbers of consumers will choose ethical investment," she commented.
Figures from the Ethical Investment Research Service show that, as of December 31st 2007, a record £8.9 billion has been invested in green and ethical retail funds. A decade earlier, the figure stood at just £1.5 billion.
This week marks Ethical Investment Week which aims to encourage investors to consider investment options, such as buying stocks and shares, in green and ethical companies.
