We handpicked the top ethical ISA accounts offered by investment platforms and specialised providers, considering the costs, range of investment opportunities, adherence to industry standards, and usability of products. We also discuss how ethical ISAs work as well as what to consider when choosing one.
The fundamental objective of ethical investing is to support well-managed businesses that have a positive social impact and do not harm the environment. These three key factors fall under the category of ESG investment, which stands for environmental, social, and corporate governance.
Environmental concerns encompass issues such as climate change, whilst social concerns focus on aspects like access to healthcare. Corporate governance ensures that companies have the necessary mechanisms in place to ensure ethical conduct.
Investment firms provide impact funds, which aim to utilise individuals' savings to invest in shares or other funds that generate measurable, beneficial social and/or environmental impacts.
This abundance of choices empowers consumers to align their investment opportunities with their personal principles. With our comprehensive guide, you can explore the best ethical ISAs tailored to your values and financial goals.
Ethical ISAs Providers Reviewed
Ethical investment ISAs come in two major variations: those that have ethical investment products, and others who are focused solely on ethical investment. They also differ in fees and range of products, so check both types of providers before investing.
Traditional Providers
| Name | Score | Visit | Disclaimer | |
|---|---|---|---|---|
 | 7.6 | Visitii.co.uk | ||
 | 7.5 | Visitwww.moneyfarm.com/uk/ | ||
 | 7.6 | Visitnutmeg.com |
1. Interactive Investor – Best for DIY Ethical ISAs with Larger Portfolios
Platform Fees | Investor Essentials – £4.99/month, Investor – £9.99/month, Super Investor – £19.99/month |
|---|---|
Dealing Fees | £5.99 for UK shares, £19.99 for foreign shares |
Investment options | Sustainable Investments Long List (200 investment options), Ethical growth portfolio (ready-made) |
Investor plan and the Super Investor plan | Junior ISAs for your children, One or two free monthly trades, SIPP for just £10 a month |
Interest on uninvested cash | Between 2.27% and 1.26% AER |
Minimum investment | £25 |
Regulation | FCA |
Ethical ISA Standards | ACE (Avoid, Consider, Embrace) standards |
Interactive Investor provides the broadest range of investment options in the UK. It’s best for experienced DIY investors and offers guidance to other people who want a DIY ethical ISA.
With 200 investment options, a ready-made ethical portfolio, and its sustainable Investments Long List, ii simplifies the process of creating an ethical DIY ISA.
However, the platform emphasises that investors need to do their own research to ensure the options meet their needs.
The flat-fee price model is ideal for investors with huge investments, as the provider’s interest rate on uninvested cash helps you save some of the value in your ISA while deciding where to invest.
- The flat-fee model
- Interest on uninvested cash
- Curated list of sustainable and ethical investments
- No trading fees for regular investing
- Minimum investment as low as £25 a month
- Ready-made ethical portfolio
- Not suitable for smaller investment pots
- International dealing is rather expensive
- Not the best choice for beginner investors
- Expensive compared to other providers
2. Moneyfarm – Best for Lowest Fees
Platform fees | Varies from 0.75% to 0.35% |
|---|---|
Other fees | Underlying fund fees: 0.2% on average. |
Minimum investment | £500 single payment |
Investment options | ETFs only |
Regulation | FCA |
Ethical ISA standards | United Nations Global Compact, Principles for Responsible Investment, International Labour Organisation |
Moneyfarm is unique for its combination of a robo-advisor investment platform and dedicated assistance from financial experts. Its ESG ISA offer includes personalised portfolios that can be passively or actively managed.
Its sustainable portfolio is best for people who want to be flexible with their investments. The fees are the lowest on the market, especially given the opportunity to talk to your dedicated advisor whenever you need to.
One downside is that the initial minimum investment is £500, making it inaccessible for people who want to invest smaller amounts. Furthermore, it exclusively invests in ETFs, which is excellent for lowering the charges and risks, but seasoned investors may want more options.
- Free dedicated financial consultant
- Portfolios rebalanced regularly
- Low fees
- Easy-to-use app
- Demo account
- High minimum initial investment
- No interest on uninvested cash
- Only ETFs available
- Not for DIY investors
3. Nutmeg – Best for Portfolios Fully Managed by Experts
Platform Fees | 0.75% up to £100,000, 0.35% on portion beyond |
|---|---|
Fund Fees | Between 0.20% and 0.36% |
Other Fees | Market spread: 0.04% |
Investment options | Socially Responsible Portfolio: ETFs |
Minimum investment | £500 |
Regulation and Protection | FCA |
Ethical ISA Standards | Based on MSCI data, SRI |
Nutmeg is a robo-advisor that simplifies the investing experience. It’s excellent for beginner investors who want to simply pay into an ethical ISA and get it managed by experts.
Nutmeg’s socially responsible portfolio is considered best as it emphasis on environmental, social and governance (ESG) standards. It excludes businesses with significant exposure to the tobacco industry, nuclear weapons, controversial weapons, alcohol, adult entertainment, environmentally damaging businesses and more.
- Simple fee structure
- Fully-Managed by Experts
- Regularly rebalanced
- Great customer service
- Not as transparent as other ISAs
- Expert advice only free for a 15-minute call
- No DIY investing
- High Minimum investment
ISAs from Providers Specialising in Ethical Investing
| Name | Score | Visit | Disclaimer | |
|---|---|---|---|---|
 | 7.0 | Visittriodos.co.uk | ||
 | 7.5 | Visitcirca5000.com | ||
 | 8.0 | Visitwww.bigexchange.com/ |
1. Triodos – Best Ethical ISAs Overall + Great Ethical Cash ISA
Platform fees | 0.40% per quarter |
|---|---|
Ongoing Charges Figure | Varies from 0.75%-1.10% |
Minimum investment | £25 per month, or a lump sum from £250-£20,000 per tax year |
Investment options | Global Equities Impact Fund, Pioneer Impact Fund, Sterling Bond Impact Fund, Bonds, gilts, direct investment in companies |
Regulation and Protection | Dutch Central Bank (DNB), Dutch Authority for the Financial Markets (AFM), FSCS protection |
Ethical ISA Standards | Certified B Corp, Member of Net-Zero Banking Alliance, Specialising in Ethical banking, and 100% transparency |
Triodos focuses on ethical investing exclusively. It is a recipient of the Queen’s Award for Enterprise and the Best Ethical Financial Provider award.
It offers the best ethical Stocks and Shares ISA as it invests in three impact investment funds with completely transparent portfolios. The ethical funds are focused on sustainability and have a unique feature: investing directly in companies that are making a positive impact, thus, making it easier for investors to research.
Moreover, Triodos offers a Cash ISA with a high-interest rate, fixed at 3.90% AER over a two-year period during which you cannot withdraw money if you want to keep the terms and avoid the early-withdrawal charge.
- Complete transparency about investment options
- Highly efficient customer service
- Rigorous Investment Criteria
- High-Interest Rate on Cash ISA
- Direct investing in companies
- Fossil-fuel-free
- No DIY investing
- Limited investment choice
- High fees
- Minimum lump sum of £250
2. CIRCA 5000 – Best for Ethical Investment Options
Platform Fees | 0.45% |
|---|---|
Fund Fees | 0.42% on average |
Dealing fees | No fees |
Investment options | Green Energy & Technology Fund, Clean Water & Waste Fund, Sustainable Food & Biodiversity Fund, Social & Economic Empowerment Fund |
Minimum investment | £5 |
Regulation | FCA |
Ethical ISA Standards | Aligned to investible UN Sustainable Development Goals, Certified B Corp |
CIRCA5000 specialises in ethical investments since it is a certified B corporation, meaning it follows strict standards when it comes to performance, accountability, and transparency.
The platform is focused on investing in companies that create a positive impact, rather than just ESG or SRI companies. By opening a CIRCA5000 Stocks & Shares ISA, you can invest in five funds, bonds, and cash, and can also customise the allocation of your portfolio.
It is meant for people who genuinely want to focus on investing in positive change but don’t have the time to screen each investment option for negative and positive impacts on sustainability, social development, and governance.
- Focused on companies that create impact
- Great for people who are worried about greenwashing
- Great customer service
- Easy-to-use app
- Simple fee structure
- Highly transparent
- No interest on uninvested cash
- Limited Choice of investments (by design)
- Slightly high fees
3. The Big Exchange – Best for Specialised Ethical DIY Investing + Readily Available Research on Funds
Platform Fees | 0.25% |
|---|---|
Fund Fees | between 0.5% and 1.8% per year |
Investment options | Actively managed funds only |
Minimum investment | £25 a month, or £100 one-off minimum payment |
Regulation | FCA |
Ethical ISA Standards | UN's Sustainable Development Goals |
The Big Exchange is a specialist ethical investment platform that screens investment options meticulously, ranking them according to impact.
It focuses on investing in actively managed funds denoting that the fund fees are slightly higher compared to passive funds. However, this ensures ethical investors that funds are continually reevaluated and monitored.
While there are many great ready-made portfolios which you can customise, the Big Exchange is also excellent for people who want to choose their own portfolio.
You can filter funds according to theme and ranking or may choose fossil-fuel-free and female-led funds. The BE also displays each fund’s shortcomings as well as the fund manager’s response.
- Flexi ISA
- Excellent customer support
- Strict impact methodology
- Highly transparent about investments
- Low fees for a specialist platform
- Active investing only
- You can filter to see only fossil-free funds
- Limited choice for seasoned DIY investors
- No passive funds, so fund fees are a bit higher
- Funds only
How We Categorise & Review The Best Ethical ISAs
As an ethical ISA covers a range of products, we included both regular and specialist providers that cover different products. We reviewed the best ethical ISAs on the basis of the criteria discussed below:
Regulation and monitoring: All the vendors are regulated by the FCA and offer FSCS protection. We also focused on vendors who build their ethical investment products with a clear methodology.
Transparency: Although some companies on the list rank better than others according to transparency, we focused on companies that are clear about their investments and standards.
Fossil fuels funding: Not all providers here offer clear fossil-free investments. However, we listed it where they do. Hey, we like to breathe, too!
Ease of use: All the companies have top-rated apps and excellent customer service.
What Is an Ethical ISA?
An ethical ISA is an individual investment or savings account where the funds are invested in ethical companies, or in the case of a cash ISA, where the provider only lends to ethical companies.
It excludes or limits investing in companies whose practices do not align with the investors’ ethics.
In all other aspects, it is a typical ISA: a savings or investment account with up to £20,000 annual tax-free allowance (for all your ISAs combined).
What funds are likely to be excluded from ethical ISAs?
Ethical ISAs typically exclude funds that invest in industries such as weapons, tobacco, alcohol, gambling, and adult entertainment.
Many ethical ISAs also focus on sustainability and social development. These exclude or limit funds that invest in fossil fuels, companies that score low on working conditions, heavy polluters, mining, and sometimes companies that harm animals.
However, not every ethical ISA has the same standards, so it’s up to you to do your research and ensure it aligns with your own ethics.
What kind of companies are likely to be included in ethical ISAs?
Ethical ISAs will usually include companies that have a positive influence on the environment and people, or companies that have high standards in the way they operate.
Usually, these funds focus on companies that tackle global issues such as climate change, gender inequality, and workers’ rights.
These can be clean energy and technology companies, sustainable agriculture companies, education, healthcare, wellness, and firms in other industries with a positive impact on individuals and the planet.
Ethical Stocks and Shares ISAs can perform just like regular ISAs. While ethical standards do limit your choice of investments, many sustainable funds show excellent performance, especially if you are focused on long-term investments. Moreover, numbers from the Morgan Stanley Institute for Sustainable Investing show interest in sustainable investing is growing among investors and fund managers despite some turbulence in 2022.
What are the different types of ethical ISAs?
Like all other ISAs, ethical ISAs come in different forms and serve different purposes. Here are the basic types:
Cash ISA
Stocks & Shares ISA
Junior ISA
Lifetime ISA
Innovative Finance ISA
The main types of ISAs are the Cash ISA and the Stocks and Shares ISA.
With Ethical Cash ISAs, you can earn interest on your savings. But, what makes them ethical? The fact is that the ISA provider would lend your money only to businesses that put a positive impact on the world. While these cash ISAs come with lower risks compared to Stocks and Shares ISAs, they also come with lower growth potential.
The most ethical ISAs on our list are Stocks and Shares ISAs, designed to grow your money through ethical investment. As with Cash ISAs and interest, your assets are tax-free if you stay within the yearly allowance.
In a nutshell: Ethical ISAs are just like other ISAs, but they focus both on the growth of your money and its impact on the world.
How to Choose an Ethical ISA?
To choose an ethical ISA, start with your values and expectations like What do you want to invest in? Do you want a more standard ISA with additional screening, or are you looking to put your money into innovative businesses with a direct positive impact?
✔️ Once you know what standards you’re looking for, pay attention to the ethical ISA provider and fund transparency.
✔️ Examine different funds and the companies they invest in. As this can be highly time-consuming, you can review the top ten companies in each fund to get a better picture.
✔️ If you are adamant about excluding some investments, make sure the provider is clear about them in its portfolios. For example, the Big Exchange lets you filter out fossil fuel investments while you build your portfolio.
✔️ Provider’s ethics can also be a factor, so check if the vendor you invest with satisfies your standards regarding workers’ rights and other issues. If this is a high priority for you, you can look for certified B corporations that follow rigorous ethical standards.
✔️ Next, make a choice between a Cash ISA or a Stocks and Shares ISA. If you go for the latter, assess how much time, energy, and money you can spend to make your ISA work for you.
✔️ Finally, think about how much risk you can afford (while not losing sleep over it). Are you a no-hassle, ready-made portfolio kind of person, or a DIY (hopefully experienced) investor type?
Ethical ISAs cost similar to regular ISAs. There may be some differences in fund fees, but you can find affordable ethical ISAs and some that are cheaper than traditional ISAs.
The Bottom Line – Should You Get an Ethical ISA?
All investments pose a risk, and an ethical ISA is no exception. However, if you want an ISA that is governed by ethical principles, an ethical one might cost just the same or less, with the same potential risk, but it comes with the pleasure of knowing your money is invested in a better world.
