The Ethical Investment Research Service is publishing a free guide to help IFAs and their clients check the ethical policy of pension funds.
It comes in response to Government regulation introduced last year which forces pension fund trustees to disclose the social, environmental and ethical issues they take into account when making investments. The move has helped to fuel client interest in ethical investment.
The Changing World of Pensions advises on how to extract investment information from pension providers and gives examples of different funds' approaches to ethical investment.
It also outlines the action that pension savers can take to encourage trustees without ethical investment policies to adopt a more socially responsible approach.
Eiris believes only a small number of pension funds are not looking to address environmental and ethical concerns. It says many fund managers have shown considerable interest in approaching experts for advice on ethical investment issues to see how investing in this area could enhance their financial performance.
However, Eiris warns it is still difficult for pension fund members to find out their fund's ethical investment statement.
A spokesman says: “It is early days yet. The question of monitoring how well their fund managers follow the ethical parameters set does not yet seem to have been tackled by most trustees, so there is still room for development.”