ISAs
Best Ethical Stocks and Shares ISAs
1 JUL, 2025
Investing shouldn’t come at the expense of your values. A stocks and shares ISA already gives you a tax-free way to grow your money, but what if you could also invest in companies that care about the planet, human rights, and ethical business practices?
From sustainable funds to socially responsible portfolios, we’re breaking down the best performing ethical stocks and Shares ISAs in the UK. Whether you want a high-performing investment, a Junior ISA for your child, or just a guilt-free way to build wealth, here’s what you need to know.
Best Ethical Stocks and Shares ISAs UK
If you want an ISA that makes a difference without sacrificing performance, these five are some of the best performing ethical stocks and shares ISAs in the UK right now.
Nutmeg: Best for beginners
Nutmeg’s Socially Responsible ISA Portfolio is an ideal choice for hands-off investors seeking an actively managed, ESG-focused investment. As part of one of the best trading platforms for beginners, Nutmeg offers an easy-to-use experience combined with responsible investing principles.
Key features
- Fully managed, diversified portfolio
- Excludes harmful industries like fossil fuels and arms
- Simple, user-friendly platform
| Pros of Nutmeg | Cons of Nutmeg | ||
| ✅ Great for beginners, no need to pick funds | ❌ No control over individual stock selections | ||
| ✅ Low fees compared to traditional fund managers | ❌ Performance depends on Nutmeg’s fund choices | ||
| ✅ Sustainable investment strategy backed by MSCI ratings |
| Pros of Nutmeg | Cons of Nutmeg |
| ✅ Great for beginners, no need to pick funds | ❌ No control over individual stock selections |
| ✅ Low fees compared to traditional fund managers | ❌ Performance depends on Nutmeg’s fund choices |
| ✅ Sustainable investment strategy backed by MSCI ratings |
Triodos: Best for purely ethical investments
If you want an ISA where every investment is carefully screened for sustainability, Triodos Bank’s Ethical Stocks and Shares ISA is a fantastic choice. Unlike providers that mix ethical and non-ethical funds, Triodos is 100% committed to impact investing, putting your money into companies that actively drive positive change.
Key features
- Purely ethical investments
- Invests in sectors like renewable energy, healthcare, and social housing
- Transparent pricing
| Pros of Triodos | Cons of Triodos | ||
| ✅ You can invest as little as £25 per month | ❌ Less diversification compared to larger platforms | ||
| ✅ User-friendly mobile app that shows real-time impact of your investments | ❌ 0.40% annual charge for any balance up to £250,000, but lower for higher investments | ||
| ✅ Genuinely sustainable |
| Pros of Triodos | Cons of Triodos |
| ✅ You can invest as little as £25 per month | ❌ Less diversification compared to larger platforms |
| ✅ User-friendly mobile app that shows real-time impact of your investments | ❌ 0.40% annual charge for any balance up to £250,000, but lower for higher investments |
| ✅ Genuinely sustainable |
Interactive Investor: Best for passive investing
For investors who want ethical investment options without the hassle of research, Interactive Investor’s Sustainable Stocks and Shares ISA is a great choice. Instead of making you dig through thousands of funds, ii has curated a selection of sustainable investments that align with different values.
You can either go for ii ACE 40, UK’s first rated list of 40 best-in-class sustainable funds, ETFs, and trusts, all pre-screened for ethical standards, or browse ii’s full range of sustainable investment options and build a portfolio that matches your values.
Key features
- Huge list of ethical investments for DIY investors
- Comes with three sustainable styles
- Transparent pricing
| Pros of interactive investor | Cons of interactive investor | ||
| ✅ ACE 40 list simplifies ethical investing, ideal for beginners | ❌ May be quite expensive for smaller investors due to the flat-fee model | ||
| ✅ Wide range of other ethical investments for more experienced investors | |||
| ✅ Flat-fee model ideal for larger portfolios |
| Pros of interactive investor | Cons of interactive investor |
| ✅ ACE 40 list simplifies ethical investing, ideal for beginners | ❌ May be quite expensive for smaller investors due to the flat-fee model |
| ✅ Wide range of other ethical investments for more experienced investors | |
| ✅ Flat-fee model ideal for larger portfolios |
Moneyfarm: Best for balanced approach
If you want a fully managed, hands-off approach to ethical investing, Moneyfarm’s Socially Responsible ISA could be a great fit. Their ESG-focused portfolios are built to reflect sustainability values without sacrificing performance.
Moneyfarm screens thousands of assets using MSCI data to ensure their ESG funds meet strict sustainability criteria. These portfolios invest in companies that prioritise environmental, social, and corporate governance factors, supporting forward-thinking businesses committed to positive impact.
Key features
- Fully managed ethical portfolios
- Uses MSCI data
- Flexible fees, starting from 0.68% per year for fixed allocation
| Pros of Moneyfarm | Cons of Moneyfarm | ||
| ✅ Balanced approach between ethics and performance | ❌ Managed portfolios always come at a higher cost than DIY portfolios | ||
| ✅ Balanced approach between ethics and performance | |||
| ✅ ESG screening is very strict and data-driven |
| Pros of Moneyfarm | Cons of Moneyfarm |
| ✅ Balanced approach between ethics and performance | ❌ Managed portfolios always come at a higher cost than DIY portfolios |
| ✅ Balanced approach between ethics and performance | |
| ✅ ESG screening is very strict and data-driven |
Best Ethical Junior Stocks and Shares ISAs
Investing in an ethical junior stocks and shares ISA is a fantastic way to secure your child's financial future while staying true to your values. Finding the best Junior ISA ensures you get both strong ethical credentials and solid growth potential. To be eligible, the child must:
- Be under 18 years old
- Live in the UK
- Not have an existing Child Trust Fund account
For the current tax year, you can contribute up to £9,000 into a Junior ISA. Now, let's explore some top ethical options:
Scottish Friendly
Scottish Friendly offers the My Ethical Select Junior ISA, which invests in their International Ethical Fund.
Key features
- Invests solely in the International Ethical Fund, targeting companies committed to ethical operations.
- Named Best Junior ISA Provider 2024 for the sixth consecutive year at the Investment Life and Pensions Moneyfacts Awards.
- Once set up by a parent or guardian, grandparents, friends, and family can also contribute to the ISA.
| Pros of Scottish Friendly | Cons of Scottish Friendly | ||
| ✅ Strong track record with awards to back it up | ❌ You can’t pick multiple funds or customise your investments | ||
| ✅ Strong track record with awards to back it up | |||
| ✅ Great for hands-off investors looking for a managed fund |
| Pros of Scottish Friendly | Cons of Scottish Friendly |
| ✅ Strong track record with awards to back it up | ❌ You can’t pick multiple funds or customise your investments |
| ✅ Strong track record with awards to back it up | |
| ✅ Great for hands-off investors looking for a managed fund |
The Children's ISA
This ethical Junior ISA from The Children's ISA gives parents more control while still prioritising sustainability. Partnering with EdenTree Investment Management, the ISA invests in the Amity International Fund, which backs companies committed to ethical business practices and long-term sustainability.
Key features
- Focuses on ethical and sustainable international companies
- Option to choose your own ethical investments within the account
| Pros of The Children's ISA | Cons of The Children's ISA | ||
| ✅ Socially responsible focus with strong ESG screening | ❌ May require more hands-on management compared to fully managed options | ||
| ✅ More investment flexibility than some other JISAs | |||
| ✅ Managed by EdenTree, a specialist in responsible investing |
| Pros of The Children's ISA | Cons of The Children's ISA |
| ✅ Socially responsible focus with strong ESG screening | ❌ May require more hands-on management compared to fully managed options |
| ✅ More investment flexibility than some other JISAs | |
| ✅ Managed by EdenTree, a specialist in responsible investing |
Hargreaves Lansdown
Hargreaves Lansdown, known as one of the best stocks and shares ISA brokers, is the UK’s biggest DIY investment platform, offering parents full control over their child’s ethical investment strategy with a wide range of options.
Key features
- Excellent flexibility
- Range of investment options to match all your ethical principles
- Competitive fees of 0.45% per year
| Pros of Hargreaves Lansdown | Cons of Hargreaves Lansdown | ||
| ✅ Ideal for parents who want control over investments | ❌ More involvement required as you need to pick and manage funds | ||
| ✅ Broad selection of sustainable funds | ❌ Costs can add up for large portfolios | ||
| ✅ One of the most trusted investment platforms in the UK |
| Pros of Hargreaves Lansdown | Cons of Hargreaves Lansdown |
| ✅ Ideal for parents who want control over investments | ❌ More involvement required as you need to pick and manage funds |
| ✅ Broad selection of sustainable funds | ❌ Costs can add up for large portfolios |
| ✅ One of the most trusted investment platforms in the UK |
👉 For more information on this broker, read our Hargreaves Lansdown review.
Conclusion
The best ethical stocks and shares ISAs let you grow your money while investing in a better future. With various options available—whether a passive low-cost ESG index fund, an actively managed sustainable portfolio, or an ethical Junior ISA for your child—it’s also helpful to understand how many ISAs you can have to make the most of your investments and maximise your tax benefits.
FAQs
What is an Ethical Stocks and Shares ISA?
An ethical stocks and shares ISA invests in companies that meet ESG (Environmental, Social, and Governance) criteria, focusing on sustainability, corporate responsibility, and ethical business practices.
So, with an ethical stocks and shares ISA, your money goes into green energy, fair wages, and corporate responsibility, instead of tobacco, fossil fuels, or arms manufacturing.
Here are some benefits of choosing the best ethical ISAs:
- Invest in companies committed to sustainability and social good
- Avoid industries like fossil fuels, weapons, gambling, and tobacco
- Ethical investments often outperform traditional investments in the long run
- All investment growth is tax-free within an ISA
Can ethical investments really be profitable?
Yes. Many ESG funds outperform traditional investments due to the shift towards sustainability and ethical business practices.
Are ethical ISAs riskier?
It depends. Equity-based ethical ISAs can be volatile, but a balanced ESG fund (including bonds) offers lower risk.
Can I switch my existing ISA to an ethical one?
Yes. You can transfer an existing ISA to an ethical provider without losing tax benefits. Most major platforms offer easy ISA transfers.
What should I know about choosing the best ethical investment ISA?
Before choosing the best ethical investment ISA for your needs, make sure to compare fees, performance, and ethical criteria (e.g., ESG ratings). Look for providers with transparent policies and a focus on your specific values, such as climate change, social justice.
Is investing ethically going to cost me more?
Investing ethically doesn’t necessarily cost more, but it can sometimes involve slightly higher fees due to the additional research and screening required for ESG criteria. However, many providers now offer competitively priced ethical funds, making it possible to invest responsibly without breaking the bank. Plus, by focusing on sustainable and well-governed companies, ethical investing may help reduce long-term risks, potentially protecting your returns over time.
