Ethex kicks co-op success back into the conversation
With the ongoing demise of the Co-Operative, the words ‘ethical’ and ‘investment’ are enduring a turbulent relationship at present. But, recent announcements around the state of ethical investment platform Ethex tell an alternative story of 'positive investment' and co-operative progress.
Yesterday Ethex announced the latest trends from its ethical investment marketplace. It has raised over £1m for its business members since launching in January, and has highlighted cooperatives as among its success stories.
One of the most recent successes on the platform is Wedmore Community Power Cooperative, which rapidly sold out of shares and a two-year bond issue according to Ethex. The cooperative has built a new community-owned solar power plant in Somerset, with 4,000 panels, which can generate up to 1megawatt – enough to power about 300 homes.
Robin Mewes, secretary to Wedmore CPC and director of Community Power Ltd said that Wedmore's £950,000 community share offer received a considerable and valuable boost on the ethical sales platform.
"We have sold out of shares," he said, "but still have seven-year bonds for sale through Ethex if anyone would like to test how this works.”
Over half of investments made have been in equity, Ethex said, with people investing between £500 to £5000. Victoria and Justin Ash who invested in Wedmore explained their approach as part of a growing community of investors: “As residents of Blackford we are keen to support local initiatives to generate clean power, and we also see this as a good investment opportunity at a time when interest rates are so low."
Funds invested through the website now stand at £1.17m. Ethex also announced that overall the most popular investments have been in social and environmental finance – investments in banks, building societies and credit unions that are lending to social and environmental businesses. This is followed by renewable energy and social property investments.
Jamie Hartzell, Ethex founder and managing director said that understandably people have been investing larger amounts into less risky positive savings and investments.
"But more people are attracted to support new and exciting initiatives, albeit with smaller investment amounts," he said. "It goes to show that people and potential investors have a largely sensible attitude to risk,” he added.
Investment opportunities include offers with strong envrionmental credentials and projects with social missions, from the Ethical Property Company and Avante Partnership, which provides care homes for people with dementia in the UK to investments like Oikocredit and Traidcraft with social objectives in developing countries.
Ben Metz, an Ethex investor and social enterpreneur, said he thought that Ethex was starting to change an investment market where the vast majority of investments are tailored to the needs of big money and diverted from smaller organisations and people who are trying to making a difference.
"The problem with those smaller organisations is that there isn’t much liquidity in their investments – something which Ethex is starting to change – which must be a good thing. It’s helping to open up the market to smaller investors who want to invest their money positively,” he said.
Hannah Fenton who also invested in Wedmore Community Power Cooperative said she had looked to invest in the Bristol Energy Co-op but missed the deadline, and was careful not to miss the next opportunity.
When asked why she was engaging in ethical investing she said, "I wanted to start investing - it seemed like the next stage. The £250 minimum made it accessible and I am more likely to invest again."