1. The range of ethical considerations is often bewilderingly wide and sometimes arbitrary, which raises questions about just how valuable such "ethical" judgements are. The "ethics" espoused by some funds seem to be a somewhat incoherent collection of the latest fashionable attitudes, in which rain forests and kindness to animals play a leading role. Such funds are really little more than a new angle for marketing more investment vehicles to a well meaning but somewhat naive public. One UK bank advertising itself not to lend to oppressive regimes does virtually no international lending.
2. Just because a fund calls itself ethical or environmental does not mean it avoids all the areas you might expect. Some ethical funds invested in countries with repressive regimes, in companies that manufacture weaponry components and few avoid the ethically controversial area of intensive and factory farming.