Top sustainable investment platforms in 2023

With so many of us now worried about the rising cost of living and meeting basic household bills, it might seem like caring about the environment is less of an urgent issue than it was a couple of years ago.

But investing our money sustainably is in fact more critical now than ever.

The following platforms allow you to invest in funds or projects that pool investors’ money together to put into companies and organisations that are working to build a better, cleaner, more sustainable future.

For your complete guide to the best ethical and sustainable investment funds available to UK investors, see the latest Good Investment Review, produced in partnership with Square Mile Research and The Big Exchange. 

Which platform you choose should depend on a number of factors, including how much money you have to invest and what you want to invest in. If you’re unsure, consider seeking advice from an ethical financial adviser.

Stocks and shares ISA options

AJ Bell

Investments: Investment funds, company shares, trusts, Exchange Traded Funds (ETFs), bonds
Annual fee: 0.25 per cent capped at £3.50 per month (up to £250,000 invested, then at decreasing rates)

Although it is set up for the more confident investor, the AJ Bell platform is relatively easy to navigate and has some nice guides and articles. Importantly, it is one of the more competitively priced platforms too.

Within its large range of funds you’ll find a good selection of sustainable options. It currently has six ethical funds in its ‘favourite funds’ list, which is hand-picked by experts as being most likely to bring you a steady profit.

BestInvest

Investments: Investment funds, company funds, trusts, ETFs
Annual fee: 0.4 per cent (up to £250,000 invested, then at decreasing rates). 0.2 per cent on ready-made portfolios and US shares (again, up to £250,000 invested)

BestInvest is a stalwart of the investing space and has its own team of financial advisers should you not fancy the DIY option. The annual price of the platform is a bit higher than other low cost options at 0.4 per cent, unless you have over £250,000 to invest at which point the cost comes down to 0.2 per cent.

BestInvest’s ‘best funds’ list includes at least nine ethical options and – for those seeking a managed solution – it offers two sustainable ready-made portfolios (with a lower annual fee of 0.2 per cent) to suit your preferred level of risk. Both invest in companies that aim to have a positive effect on the world while avoiding those that have a detrimental impact.

The platform feels like it is geared towards a more seasoned investor, but it does have some useful guides on sustainable investing and how to choose ethical funds. It is also well worth checking out BestInvest’s long-standing guide to underperforming funds: Spot the Dog.

The Big Exchange

Investments: Equities (shares in a company), bonds, or sometimes both
Annual fee: 0.25 per cent

The Big Exchange, co-founded by The Big Issue, is an online investment platform which only lists funds that are proven to be making a positive difference to the planet and its people. You can choose to invest in the issues that matter to you most – whether that’s lowering carbon emissions, contributing to social housing or helping to protect wildlife.

Its ever-growing list of sustainable investment funds are all rated against the United Nations Sustainable Development Goals, or “Global Goals”, for the type and level of positive impact they’re making to people and planet. Each one is awarded a gold, silver or bronze medal, with gold having the highest ability to bring about positive change.

The Big Exchange offers ready-made portfolios, or you can pick your own funds. The Big Exchange goes above and beyond in the name of transparency by displaying all the companies each fund invests in, not just the top 10.

You can invest from £25 a month or a lump sum of £100.

Investments: Investment funds, company shares, trusts, ETFs
Annual fee: 0.35 per cent (up to £250,000 invested then at decreasing rates)

A global investment giant, Fidelity has around 2.87 million clients across the UK, Europe and Asia Pacific. There’s lots of content to pore over on the website but our favourite feature is the ‘Fidelity Sustainable Investment Finder,’ which helps you find the right ethical investment for your needs. Fidelity currently has a massive 474 sustainable funds to choose from.

There is also a handy sustainable investing jargon buster. Even if you ultimately decide to use another platform to invest through, these handy features makes Fidelity a good stop for researching what’s out there.

Hargreaves Lansdown

Investments: Investment funds, company shares, trusts, ETFs, bonds
Annual fee: 0.45 per cent

Hargreaves Lansdown (HL) is a well-known, trusted brand and the biggest DIY platform in the UK for personal investors. It is also one of the most expensive with an annual fee of 0.45 per cent, so be wary of how this might chip away at your returns. You can start with just £100 or £25 per month.

HL is making strides to make sustainable investment a bigger part of its offering, relaunching its Wealth Shortlist in June 2020 to include responsible funds for the first time. The list is made up of funds chosen by experts as having the greatest potential to financially outperform their peers over the long term.

There are currently 10 funds in the ‘Responsible Funds’ category. While this is still a small percentage of the 71-strong list, it’s a promising move in the right direction. HL has also produced its own guide to ESG investing.

Interactive Investor

Investments: Investment funds, company shares, trusts, ETFs, bonds
Annual fee: £119.88 (£9.99 fixed monthly charge). You can invest up to £30,000 for £4.99 per month with the new ‘Investor Essentials’ package.

Interactive Investor stands out for its flat fees. However, you will need to check if this makes sense for the amount you want to invest. Interactive Investor recently launched ‘Investors Essentials’ at £4.99 per month for those investing £30,000 or less.

The site is clear and simple and boasts the “ACE 40”, which it says is the UK’s first rated list of ethical investments. From its list of more than 140 ethical investment options, it has picked out what it considers to be the 40 best-in-class funds, investment trusts and exchange-traded funds (ETFs).

ACE stands for “Avoids Considers Embraces”. The list of ‘best in class’ funds is separated according to asset class and investment category.

Simply EQ

Investments: Equities, bonds, property, commodities, alternatives and cash
Annual fee: 0.99 per cent for investments up to £100,000, then reducing

Abundance

Investments: Direct loans to projects and businesses, secondary market
Annual fee: None

Abundance is a niche platform focusing on peer-to-peer lending for businesses and councils that are developing green infrastructure to help combat climate change.

Minimum investment varies, but starts at £5. The returns you can expect vary a fair bit too.

Typically, returns on crowdfunding sites like Abundance are higher than on traditional investment platforms but that comes with higher risk such as the infrastructure project or business struggling or failing.

The platform allows you to trade some of the loans (known as debentures) with other Abundance investors which is good for diversification.

Ethex

Investments: Direct equity (eg shares in social enterprises), bonds, funds, secondary equity market
Annual fee: None

Ethex is an innovator in the platform space and is designed specifically for people wanting to do good with their money. It offers crowdfunding and peer-to-peer lending, which means you can invest directly in projects such as affordable housing.

Like Abundance, Ethex allows you to invest in peer-to-peer loans through a tax efficient Innovative Finance ISA, which you can open on the website as you invest. Ethex also offers some funds through its platform: sustainable funds only of course! Minimum investment amounts vary but can be as low as £1. Ethex investors can use a marketplace to trade eligible shares and bonds with others on the platform.

You can also invest in bonds with Ethex’s sister company Energise Africa – a pioneering project providing solar panels for rural communities throughout Africa.

Triodos Bank

Investments: Bonds and company shares
Annual fee: None