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This article is part of our Good Guide to Investing for Impact with IFISAs.
If you’ve found yourself doom-scrolling the news lately, feeling frustrated, worried and helpless about where things seem to be heading, you’re not alone. And in the middle of all that uncertainty, more people are beginning to ask a simple question: can my money do more to make a difference?
The climate crisis is accelerating. Communities are grappling with rising energy costs and the loss of vital services. At the same time, millions of financially underserved households are being pushed towards high-cost credit when unexpected expenses hit, deepening cycles of stress and hardship. These are challenges unfolding now, in our own communities.
Policy change is essential. But so is investment. Over the past decade, the Innovative Finance ISA (IFISA) has quietly created a powerful opportunity for ordinary people to become part of the solution.
With up to £20,000 of annual tax-free ISA allowance available, more people have been choosing investments that directly support organisations tackling climate change, boosting community resilience and championing financial inclusion, while still targeting a financial return.
Momentum is building
Across the UK, ethical IFISA uptake has grown steadily as awareness increases and investors look beyond traditional ISAs and investment funds. Through Ethex, retail investors can choose ethical IFISA-eligible bonds that directly fund mission-led organisations, forming part of the funding mix that helps grassroots initiatives scale and succeed.
We have witnessed this shift first-hand. While uptake in standard IFISA investments is falling*, in 2025 over £1 million was transferred into the Ethex IFISA from other ISA providers, up from just over £680,000 the previous year.
Overall, IFISA investments on the Ethex platform increased by 42 per cent in 2025 and IFISA accounts made up 52 per cent of all investments on Ethex last year. That significant jump suggests that more people are waking up to the idea that their tax-free investments can contribute to real-world impact, not just financial outcomes.
A nicer kind of ISA is gaining ground
Through Ethex and our sister company, Energise Africa, retail investors can choose ethical IFISA-eligible bonds that directly fund mission-led organisations. This model enables everyday investors to form part of the funding mix that helps grassroots initiatives scale and succeed.
One great example in 2025 was the ethical IFISA bond offer from The Big Solar Co-op, a community energy co-op that aimed to raise £800,000 but ultimately raised an extraordinary £1.8 million from 460 investors. The funds are supporting the construction of a ground-mounted, community-owned solar park, expanding clean energy generation owned by the people and helping accelerate the UK’s transition to renewables.
That appetite for community-led climate action shows no sign of slowing. Currently open on Ethex is an ethical IFISA-eligible bond from Bath and West Community Energy (BWCE), one of the UK’s most established community energy organisations. Since 2010, BWCE has installed 37 rooftop solar systems on schools and community buildings, five ground-mounted solar sites and a hydro scheme.Now, BWCE is seeking investment in its ethical IFISA bond offer to finance the Fairy Hill Solar Array in Bath & North East Somerset.
The community-owned and funded project will generate enough clean electricity to power around 800 homes, while accelerating BWCE’s wider pipeline of local climate initiatives focused on carbon reduction, energy resilience and tackling fuel poverty. So, as well as making use of their ISA allowance and targeting a 5.5 return return, investors will be supporting a pioneering local energy supply model that keeps value circulating within the community.
This represents local climate action rooted in place, generating clean energy owned by communities rather than large corporations and delivering both environmental and social returns. Win. Win. Win.
Now, BWCE is seeking investment in its ethical IFISA bond offer to finance the Fairy Hill Solar Array in Bath & North East Somerset. The community-owned and funded project will generate enough clean electricity to power around 800 homes, while accelerating BWCE’s wider pipeline of local climate initiatives focused on carbon reduction, energy resilience and tackling fuel poverty.
So, as well as making use of their ISA allowance and targeting a 5.5 return return, investors will be supporting a pioneering local energy supply model that keeps value circulating within the community
This represents local climate action rooted in place, generating clean energy owned by communities rather than large corporations and delivering both environmental and social returns.
Win. Win. Win.
A shift in investor mindset
We believe that what we are witnessing is a shift in mindset from UK investors.
Increasingly, people are viewing their ISA allowance not simply as a government approved
tax-efficient investment, but as a way to support the values they believe in while still targeting decent returns. The Ethex ethical IFISA provides a bridge between personal finance and collective positive progress.
Of course, investments in an ethical IFISA carry risks. But for a growing number of investors, the ability to see the tangible outcomes of their investment is a big part of the appeal. Whether funding community-owned solar arrays or enabling affordable credit for financially underserved people, ethical IFISA investments are channelling vital funding to grassroots solutions that might otherwise struggle to access growth capital.
At a time when the UK urgently needs practical responses to climate change, energy insecurity and financial exclusion, this flow of capital powered by everyday investors matters.
More people than ever are recognising that their £20,000 annual ISA allowance can be part of building the fairer society and healthier planet we all need. And as awareness grows, the ethical IFISA’s role in connecting savers directly to impact looks set to gather even greater
momentum in the years ahead.
*Source: Commentary for Annual Savings Statistics: September 2025 from HM Revenue
& Customs
