‘I’ve made 300pc off cars powered by hydrogen’

From environment activist Greta Thunberg’s speech at the United Nations to Bank of England Governor Mark Carney calling out oil companies, being ethical or “green” is all the rage, and investors are joining in.

The strategy – where investors buy companies or funds for their environmental credentials, or exclude investments that do not meet their own ethical standards – has grown in popularity. However, it is riddled with a stereotype that younger investors are more interested than their seniors.

This is not true, according to data from fund supermarket Interactive Investor. It found no discernible difference in the allocation of “socially responsible” investments among savers of different ages.

David Dundas, 78, from Staffordshire, has been investing for 60 years and has always taken ethical considerations into account. For the past 15 years he has been picking his own stocks.

“Climate change is of personal interest to me and I understand the changes going on in the alternative energy sector. Britain led the way in technology during the Industrial Revolution, and it can again in the green energy revolution,” he said.

One stock he bought, ITM Power, is involved in the country’s shift to “greener” fuel. It supplies hydrogen to refuelling stations for hydrogenpowered cars and trains.

“It is the future of heavy transport. I have been physically invested in hydrogen-powered cars, planes and trains,” he said.

Mr Dundas bought the stock two years ago and its share price has risen 300pc since then. “It has further to go,” he said.

Ethical investing has gone mainstream – and not only among the younger generation, Sam Benstead reports

He noted green electricity generation has a long way to go to meet Britain’s renewable energy targets, which means the sector will be supported by the Government and have growing sales.

Clive Hewitt, 76, from Amersham, prefers not to invest in companies that he deems unethical, such as tobacco, alcohol or arms. But when it comes to funds, he does not want to restrict himself from owning top-performing income managers.

He owns Nick Train’s Finsbury Growth & Income trust, which has Diageo as a top holding, and Merchants Trust, which has investments in tobacco.

“I am concerned that income funds

Solar panels and hydrogen buses are part of the renewable energy push, above; ethical investor David Dundas, below dropping tobacco and oil companies would not be able to operate effectively. Income comes over ethical concerns in this case. I wouldn’t want to tie the hands of the fund managers and restrain their stock picking,” said Mr Hewitt.

However, he actively seeks out companies that improve the world when picking his own stocks. He owns Bioventix – a biotechnology company that is using blood testing in the search to find a cure for coronavirus. SSE, another holding, is turning hydrogen into energy.

Mr Hewitt thinks companies that do good will also be profitable in the future.

He has had mixed experiences investing in dedicated ethical funds. He bought L&G Ethical Trust in his wife’s pension but sold old it after it failed to beat its benchmark rk for a number of years. The fund tracks racks the performance of the FTSE 350 index but excludes companies which do not meet a range of ethical and environmental onmental guidelines, such as oil and tobacco.

He also sold the Allianz Technology Trust, which owns software re companies, to buy Impax Environmental tal Markets, which invests in companies es that have a positive impact on the environment. “I am very happy with this investment but I will sell it if it doesn’t beat the global stock market, said Mr Hewitt.” Keith Best, 70, from London, also draws a red line at investing in tobacco and actively avoids funds that buy it. However, he thinks oil stocks are misunderstood and climate activists do not appreciate their importance for the shift to renewable power. “BP and Shell have good green initiatives and large investments in renewables. Investors that dismiss them entirely need to be more nuanced in their analysis,” he said. He believes oil companies understand the need to change and could become world leaders in renewable energy. “This isn’t just a public relations stunt stun – it is genuine. The world is changing chan and I respect them for looking lookin forward and trying to keep kee up,” he added. Mr Best said sa he would consider investing inv in specialist ethical or impact im funds, such as those involved invo in batteries and energy storage. s He added: “I see the attraction at of ethical funds fun and think that technology technol firms focusing on green gr energy could make ma fantastic iny investments – and you are making a positive impact.”