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Ethical investing has nuances that are in danger of being overlooked

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The role of financial markets in supporting progress on environmental, social and governance issues is increasingly in the spotlight. Every company looking to attract money from investors faces intense scrutiny across issues such as their approach to net zero, reducing community inequalities or fostering a diverse corporate leadership. The investment decisions of the world’s biggest institutional investors — the organisations that allocate your pension and rainy-day funds — are having direct and indirect impacts on corporate responsibility. Recent research by Morningstar suggests that a big transition is under way, with more than £3 trillion of savers’ cash allocated to uniquely sustainable investing strategies. While this is a small minority in a global investment market worth more than £140 trillion, this proportion has doubled over the