SPENDING on “ethical goods” in the UK rose by nearly a sixth to almost £26 billion last year, a report by the Co-operative Bank has found.

The ethical consumerism report examines the way that ethics affects spending on goods such as petrol, clothing, transport and financial services.

The survey found that the total value of ethical consumption increased by 15 per cent to £25.8 billion in 2004.

Funds invested ethically exceeded £10 billion for the first time. Consumers buying items that offset climate change spent £3.4 billion. Spending ethically on food, including Fairtrade items and organically grown produce, surpassed £4 billion for the first time; and spending on ethical fashion reached £680 million.

The amount spent on Fairtrade produce increased by 52.2 per cent to more than £140 million, while £215 million was spent on free-range eggs — a rise of 14.4 per cent on the previous year.

Consumer awareness of energy efficiency also increased, with the amount spent on energy-efficient electrical appliances rising by 23.5 per cent to £1.3 billion. Spending on eco-friendly cleaning products rose to £13 million, from £11 million the previous year.

The survey found that 54 per cent of those questioned for the survey agreed with the statement: “As a consumer, I can make a difference to how responsibly a company behaves”. This compared with 19 per cent the year before.

Greater awareness of ethical issues also led to an increase of boycotts on foods and shops.

Sales of ethical clothing, meanwhile, totalled £43 million, with negative publicity about the textile and footwear industries influencing consumers.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax