Climate change is on everyone’s lips, and when it comes to money, there is a lot that can be done to invest it in a sustainable and climate-friendly way, thus making a personal contribution with a clear conscience. This is how you can make your investment climate-friendly.
Almost every day the news reports on the Fridays for Future movement and the fight against climate change. Climate protection is more than just a fashion trend. Politics has been on the ball for years. In 2017, the 193 member countries of the United Nations (UN) committed themselves at the Paris World Climate Conference to tackle the world’s most urgent problems. With Agenda 2030, they adopted 17 goals for sustainable development, Sustainable Development Goals, SDG for short.
Following on from this, the EU Commission launched an action plan for sustainable finance in spring 2018. The aim is to support climate protection and sustainable development through sustainable finance. For example, the EU is planning an EU label for sustainable investments so that customers can identify them more easily.
The trend does not stop at banks and savings banks either. The financial supervisory authority Bafin requires institutions to include sustainability aspects in their risk management in future.
Investments with a clear conscience
No wonder that the demand for green investments is growing. Anyone who wants to make their current account, call money or securities account climate-friendly has a wide range of opportunities to do so.
Those who want to invest their money with a clear conscience do not even have to pay extra, as experts from Stiftung Warentest have now discovered. Sustainable exchange-traded index funds (ETFs) and climate-friendly funds can be obtained from any bank. The same applies to them as to conventional funds: just because an investment is designed according to ecological, social or ethical principles, it is not automatically secure.
What you should consider when making sustainable investments
There are good and bad investment options. It depends on the choice. You should bear this in mind when making sustainable investments:
- You will find climate-friendly options for all your investments. Make sure that the combination of yield and safety components continues to match your risk type. Sustainable equity funds World, combined with sustainable overnight or time deposits or a climate savings certificate, are suitable as a basis. At best, new energy, climate and environmental funds may be used as a supplement.
- You can also set up a climate-friendly current account with a sustainable bank.
- Providers of sustainable products apply different standards. Before you buy a fund or switch to another bank, you should check whether the ethical and ecological criteria meet your requirements.
- Sustainable investments are no safer than conventional ones. Some entail a total loss risk, such as direct investments in forests or investments in wind and solar plants. Bonds can also be risky, especially high-yield bonds.