With the Copenhagen Summit on climate change only a month away, the world will focus on the threat of a climate crisis, even more damaging than — and yet as preventable as — the credit crisis. Yet now is also a time of great opportunity for new business models and technologies that can respond to the environmental challenges and changing consumer attitudes we face. Today’s modern green and ethical investments are enabling investors to be at the forefront of making money from the move to a low-carbon economy.

A wide range of people choose Fairtrade and organic products not only because they are great products in their own right, but also they help society and the environment. Similarly, it makes sense for investors to consider green and ethical investing for at least part of their portfolio.

Companies that rebuild their businesses around responsibility are more likely to be the profitable investments of the future. The need to re-engineer for climate change is only one of the strong environmental and social trends driving that. Fairtrade and responsible product sourcing has moved from the margins to the mainstream to become integral to the strategies of companies such as Cadbury and Marks & Spencer. An ageing population introduces a need to innovate across a range of industries to deliver a high quality of life and social care in later years. It’s also a key consideration when attracting talent, as younger employees seek out responsible employers in ever greater numbers.

Perhaps that is why, according to research produced for National Ethical Investment Week (November 8-14), the British public believes that the companies that will thrive in the future will be those which look to the long-term and behave ethically, protecting society and the environment. Nearly half of us believe this, while a mere 3 per cent strongly disagree. The next generation of consumers and employees are even more convinced, with more than half of 18 to 24-year-olds in support.

Responding to this interest, some of today’s modern green and ethical investments take a thematic approach, focusing on trends such as water scarcity, urban regeneration and, of course, climate change. Leading fund managers report that investors see compelling investment arguments for thematic funds that invest in companies providing solutions to the environmental and social issues that the world faces. For example, the International Finance Facility for Immunisation issued a “vaccine bond” this year, while the sustainable property investment area ranges from pioneering eco-buildings to healthy low-energy offices and social housing.

It is not surprising that some consider that the true demand for green and ethical investments is only just starting to be seen. The green and ethical investment market is still at the early stages of its potential, according to Robeco, the investment managers, and Booz & Co, a management consulting firm. In a report last year, they concluded that green and ethical investing should grow to 15-20 per cent of global assets under management by 2015. That’s an inspiring thought not only for climate negotiators but for all of us.

? Penny Shepherd is chief executive of UKSIF, the organiser of National Ethical Investment Week

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