Sustainable and responsible investment also involves firms which focus on environmental and social trends, such as demographics or climate change. According to Reuters , nearly 600 asset owners, investment managers and professional service partners representing a total of $18 billion have signed up to the Principles for Responsible Investment, a United Nations-led framework.

RCM, an equity managing arm of Allianz Global Investors, says that historical performance data of sustainable investments showed no relative loss and in certain times offer extra returns, contrary to the criticism that this form of investment restricts the investment universe and underperforms a broader market

The Dow Jones Sustainability World Index has risen 29% since the start of the year, compared with 28% in the benchmark MSCI world equity index.

The driver of sustainable investment among government-owned institutions is Norway's sovereign wealth fund, which follows ethical guidelines set by the government and is seeking to play a "green activist" role. The fund rules out holding investments in certain firms, for instance those that produce nuclear arms or cluster munitions, or that damage the environment or abuse human rights. The world's second largest wealth fund, it had expelled in July Israel's Elbit Systems for supplying surveillance equipment for the West Bank separation barrier.

One of the priorities for Norway's fund is dealing with water management given the limited availability of water resources, a key input or production factor for companies in the fund's current portfolio.

As a guide, here are five major companies in the SRI mutual fund arena:

• Appleseed
• Calvert
• Domini Social Investments
• Pax World
• Winslow