Dunedin city councillors are deciding whether to continue investing money in companies and industries deemed unethical.

They're being asked to vote on a report which outlines options for the council's Waipori Fund.

The council can change the way it invests its money, towards more socially responsible industries.

Or it can continue to invest in fossil fuel and other industries considered to be unethical.

There's a chance the more socially responsible option will come with slightly more volatility in respect of investment returns.

But the council's already made moves towards divestment, resolving last year to develop a socially responsible investment policy.