Green investments
Eco investing is an innovative and vital way to make a positive impact on the environment.
Progressive businesses and funds look for creative ways of using resources sustainably – from harnessing renewable energies like solar and wind power, to researching efficient resource use methods. But, it sometimes feels impossible to determine which investment and savings companies are truly trying to make a positive environmental impact and which are just jumping on the green bandwagon. Researching your options is key for uncovering what their sustainability promises really mean!
ESG (Environmental, Social and Governance) – the set of standards measuring businesses’ impact on people and planet – has also taken a beating in the media recently, making it more important than ever to understand the nuances associated with green investing. To make this kind of investing easier to measure and report on, ESG criteria must be broken down into more specific categories and metrics. This is a worldwide work in progress, but will no doubt equip investors of the future to better select sustainable options.
In the meantime, there is something you can do to make sure that a fund you’re thinking of investing in is not involved in greenwashing. Go beyond the labels of ‘sustainable’, ‘responsible’, ‘ethical’ or ‘green’ by looking at fund fact sheets and Key Investor Information Document. Make sure that the companies listed really do align with your own green goals and stay far away from fossil fuels!
Green Angel Syndicate is the UK’s largest network of specialist investors fighting climate change. The Syndicate and its associated Climate Change Fund only invests in those companies reducing greenhouse gas emissions and protecting the environment.
And if you’re looking to green up your portfolio, start-up company Etcho offers an online tool that makes it easier to see if the money from your investments is having a positive or negative impact on the world, by matching up your investments with the UN’s Sustainable Development Goals.
Catch the lowdown on sustainable bank accounts.
