Slightly more than half of Charity Finance Group members have ethical investment policies, according to a survey carried out to coincide with National Ethical Investment Week.
The survey found that 52 out of 102 CFG members that responded to the survey had ethical investment policies.
The report found that 46 of the 52 charities involved in ethical investment were using "negative screening", where charities avoid companies whose activities are in opposition to the charity’s aims.
Only 15 out of 52 were involved in "positive screening", which involves picking out companies whose activities further the charity’s aims.
A similar survey in 2009 found that 46 per cent of CFG members had ethical investment policies.
Jane Tully, head of policy at the CFG, said that charities without ethical investment policies could be at risk of a mismatch between their campaigning objectives and their financial activities. But she said other charities were using their investments as campaigning tools.
"We’re increasingly seeing charities that own a small number of shares in a company lobby that company to change its activities," she said.