Animal testing for non-medical purposes, particularly in cosmetics and personal care, raises ethical issues about animal welfare. Investors may avoid companies that practise animal testing, seeking out those that adhere to cruelty-free methods or engage with firms to change their testing practices.

Fund managers employ a variety of methods to address this issue. Many funds completely exclude companies that engage in such practices, particularly those involved in cosmetic testing, while some set revenue thresholds, refusing investments in companies where a significant portion of earnings come from non-medical animal testing. Others engage directly with management to advocate for the cessation of animal testing, aligning investment decisions with ethical standards and regulations like those set by the Royal Society for the Prevention of Cruelty to Animals and People for the Ethical Treatment of Animals.