Many thanks for your responses. I realise it sounded a little confusing but its to do with product and marketing however I did manage to find some useful information (see below).
Green Company:
In order to be considered a green business, a company must use practices which are viewed as sustainable and environmentally friendly. These practices might include the use of organic and natural products to build its factories, tighter protections against and environmentally responsible sourcing of supplies. For example, a green clothing business would seek out organic, fair-trade to promote an environmentally friendly image, and it might have a factory with power gained from solar panels. Many green businesses are also concerned about human and animal exploitation, and they make an attempt to create cruelty free products and to pay their workers well in addition to providing them with benefits.
The goal of a green business is to keep its environmental footprint small, reducing waste and reusing materials as much as possible. Many use innovative building techniques for their facilities which are designed to promote energy efficiency, along with building materials which are environmentally friendly like panels fabricated from recycled materials. These companies also encourage their workers to think about the environment when they generate printed material and think about new products.
A green business can sell all sorts of things. Many car manufacturers for example, have green model factories and offices to convince their target consumers that they are concerned about the environment. Many green businesses also offer green products, ranging from toilets to green architecture. When a company offers environmentally products, many consumers also assume that the company itself is environmentally responsible, as its products reflect a concern about the environment.
Ethical Company:
Broadly speaking, a truly ethical company will be one that is not causing damage to the environment, exploiting its workforce by paying low wages, using child labour, or producing products which are harmful or dangerous.
Two sets of criteria - one positive, one negative - have been developed to identify ethical investments.
Positive criteria
On the positive front there are two types of approach. The first is known as best of class.
Take pollution, for example. Very few companies could be included in an ethical fund if they were required to have a 100% clean sheet in this regard. However, the best of class method would choose a company that had an excellent and improving pollution record.
The second positive method is thematic investment. This focuses on companies that are believed to be improving the world. They will be industries of the future with growth potential and may be involved in activities such as reusable energy, education, health care, telecommunications, or public transport.
Negative criteria
The Ethical Investment Research Service (EIRS) has produced a set of negative criteria.
The EIRS is a charity that screens companies on behalf of other charities and fund managers. Ethical fund managers will select from the various positive and negative criteria in deciding what to include and exclude from their portfolio. Some funds are more ethical than others.
Negative criteria might cover arms and armaments, companies which produce tobacco or alcohol and companies which have a poor record on pollution control. Different fund management use this information to draw up their own portfolios.