As might be expected as National Ethical Investment Week kicks off, upbeat figures on this sector have been coming thick and fast – and some have been very positive indeed, testifying to the increasing mainstream appeal of such investments.

EIRIS, the sustainable investment research firm, announced yesterday that there is currently some £11 billion ($17.7 billion) invested in the UK’s green and ethical funds, up from £4 billion ten years ago.

Meanwhile, a survey carried out by Ecclesiastical Investment Management suggests that this figure is set to soar even higher: the firm found that 17 per cent of investors will now consider ethical investing as a result of the banking crisis.

But while investing on the strength of companies’ environmental, social and governance profile may warm the heart it seems to be increasingly the case that taking these considerations into account is a route to outperformance. Indeed, many argue that firms which are well run in ESG terms tend to be less risky and more profitable long term.

Ecclesiastical found that only 9 per cent of investors who hold both ethical and non-ethical funds find the non-ethical ones to be better performers. This is brought into starker relief when we consider that 73 per cent of respondents said they choose funds based solely on their potential return.