Investing money sustainably – three tips that will make it work
Created: 04/29/2022, 15:40
By: Janine Napirca
Pink piggy bank with sustainability written on it © Christian Ohde/Imago
It is important to more and more people to invest money not only economically, but also ecologically.
You can read how this works here.
What are
sustainable investments
?
If you want to invest money sustainably, pay attention
to
ecological
, social and economic factors
when investing .
So that the investment
can be reconciled with the principle of
sustainability .
Here are
three tips from an industry insider
on how to invest your money sustainably.
Do you already invest your money and if so – in what?
Or have you found it difficult to put something aside?
Then try the 50-30-20 rule.
In addition, investments are no longer a male issue, because more and more women want to invest their money.
Stiftung Warentest: Sustainable funds manage almost half a trillion euros
It is the investment theme in general: sustainability.
According to a report by
Stiftung Warentest
, the BVI fund association is constantly reporting new records.
In 2021, the new inflows into sustainable funds were therefore 60 billion euros, three times more than in 2020. According to the report, in the fourth quarter of 2021 the funds managed 463 billion euros after comparatively 91 billion in the previous year.
Socially and ecologically oriented investments are becoming more and more important
One of the key reasons for the increased demand for sustainable investments is
investor awareness
.
It is becoming more and more important to many people not only to increase their money profitably, but also consciously
without coal, nuclear power, weapons or child labor
.
According to Stiftung Warentest, advice on sustainable funds is no longer a niche topic.
In contrast to just a few years ago, the subject of sustainable investing was raised without being asked by all the banks consulted by Stiftung Warentest.
Financial expert Theresa Hauck operates sustainable investment platform Econos
In addition to the classic stock ETFs, she sees great opportunities in the private capital market, because green investments can be found here.
The sustainable investment platform Econos aims to combine returns and sustainability and make green investments accessible to everyone.
Invest money sustainably: With these three tips it works
Even those who have not yet invested their own money should not be unsettled by the current situation.
On the contrary: Right now it is becoming clear that the right investments are not only essential for maintaining value and wealth accumulation, but can also make a massive contribution to sustainable change.
The financial market is only gradually shifting towards sustainability and greenwashing remains a major problem.
The result is shocking: less than 1 percent of the fund's assets are properly invested - despite the ESG boom.
Theresa Hauck, CEO and founder of the sustainable investment platform Econos
This is what the industry insider and founder of the sustainable investment platform Econos advises
The green gold that grows – generating returns with forests:
However, it is not that easy for private investors to invest in forests.
In addition, according to Theresa Hauck, the annual return often depends on the development of wood prices and she recommends paying particular attention to insect plagues and other geographical risks when selecting forests.
Power for climate change - investments in renewable energies:
According to the industry insider, the classic alternatives for investments in renewable energies have so far primarily been indirect investment opportunities via shares in large energy companies such as RWE and EON.
However, since these mostly also rely on fossil energies, fossil energies are promoted at the same time.
There are classic crowdfunding platforms such as GoFundMe as a direct investment opportunity
Innovation with meaning – promoting sustainable start-ups through venture capital:
According to the Econos founder, equity investments in start-ups have so far been relatively rare for private investments.
That is why she recommends indirect investment via VC umbrella funds and platforms.
For example, one could invest in environmentally friendly materials for packaging, climate-friendly fuel as a substitute for kerosene and petrol or alternatives to meat.
The market still offers a lot of potential and great growth opportunities for these new technologies, which, according to the industry insider, is also reflected in the high return opportunities (> 10%) of these investments,
(jn)