Standard Life’s ethical funds shun airlines

by Gill Montia

Story link: Standard Life’s ethical funds shun airlines

Standard Life Investments has announced that it will no longer include airline stocks in its ethical funds.

After surveying its investors, the fund manager found that 30% opted for a complete exclusion of airline stocks in ethical products.

An option of investing only in airlines that are working to reduce their impact on the environment did not receive such strong support.

Julie McDowell, head of socially responsible investing at Standard Life Investments, said: “The views of investors in our ethical fund range are of paramount importance to us. We are unique in carrying out an annual survey to understand investor wishes and concerns.”

She goes on to explain: “Our ethical committee concluded that because a significant number felt strongly that airlines should be avoided we should reflect that concern in our criteria.”

Standard Life Investments’ ethical funds contain around £588.5 million and the company will not be disclosing the proportion invested in airline stocks.

Meanwhile, the aviation industry continues to work on methods of cutting pollution, whilst arguing that the sector’s emissions are relatively low, when compared with other industries.

According to the International Air Transport Association, airlines produce a 2% share of global CO2 emissions and carbon emission-free airline technology could be available in the next 50 years.