Sustainable investing in shares, ETF & Co. – 12 tips that help you to invest more sustainably! Simply and understandably explained. Practical tips from experts on how to invest sustainably, environmentally and climate friendly with stocks, ETFs and other financial instruments, either by yourself or with the help of automated Robo Advisors. Tips include considering impact investing, green bonds, eco-stocks, eco-funds, eco-bonds, microcredit, social impact bonds, and common good stocks, as well as considering sustainability criteria when choosing stocks, ETFs, and other financial instruments from providers such as Grünfin or Klimavest. Green investment will also 2024 become increasingly important.
Tip 1: Educate yourself about sustainability issues.
It is important to learn about the different aspects of sustainability to better understand which companies are addressing these issues in their business operations. These include, for example:
Renewable energies
Energy efficiency
Climate change
Water pollution
Waste prevention
Social responsibility
Governance (the way a company is managed and controlled)
To find out about these topics, you can, for example:
Read corporate sustainability reports
Read articles and news on sustainability topics
View informational materials from organizations such as the Global Reporting Initiative (GRI) or the United Nations Global Compact.
Participate in training or webinars on sustainability topics
There are many companies and organizations that rate companies on their sustainability. These ratings can help you find companies that meet certain sustainability criteria. Some examples of sustainability ratings and reviews are:
Dow Jones Sustainability Index (DJSI)
FTSE4Good Index
MSCI ESG Rating
CDP (formerly Carbon Disclosure Project)
To use these reviews and ratings, you can:
Visit the websites of the companies or organizations that conduct these assessments and search for information about the companies assessed
Visit financial news websites or financial portals that provide information about sustainability scores and ratings
Talk to a financial advisor or other professional who is knowledgeable about sustainability assessments and ratings
3. search for specialized shares and ETFs
Tip 3: Look for stocks and ETFs that specialize in sustainable issues.
There are many stocks and ETFs (Exchange Traded Funds) that focus on specific sustainability topics such as renewable energy, environmental technology, or socially responsible corporate governance. These investments can be a good way to invest in companies that focus on sustainability.
To find stocks and ETFs that specialize in sustainable issues, you can:
Visit financial news websites or financial portals that provide information about sustainable investments
Visit the websites of companies or organizations that offer sustainable investments and search for information
Talk to a financial advisor or other professional who knows about sustainable investments
4. use robo-advisors for sustainable investment opportunities
Tip 4: Use robo-advisors that offer sustainable investment options.
Robo-advisors are online services that allow you to invest in stocks, ETFs and other investment products in an automated way. There are many robo-advisors that offer sustainable investment options, such as portfolios focused on specific sustainability themes.
To use robo-advisors that offer sustainable investment options, you can:
Visit the websites of various robo-advisors and search for information on their sustainable investment options
Talk to a financial advisor or other professional who knows about robo-advisors and sustainable investing
Look for reviews or recommendations from users of robo-advisors that offer sustainable investment options
Please note that you should always be well-informed about investment options and understand the risks of investing before choosing a robo-advisor.
Automated trading with Robo-Advisor?
Here are some potential benefits of robo-advisors:
Quick and easy registration
Cost effective as asset manager
Objectivity and without euphoria
Available around the clock
Diversification of your portfolio
Quick and easy registration
Signing up with a robo-advisor is usually quick and easy, and usually only requires a few details from your end.
More cost effective than asset managers
Compared to traditional asset managers, robo-advisors are generally less expensive because they do not employ human advisors and therefore have lower staffing and administrative costs. More on the topic: Robo Advisor vs Wealth Manager.
Objectivity and without euphoria
Robo-advisors base their recommendations on set rules and algorithms and are therefore less susceptible to human emotion or bias.
Round-the-clock availability
Robo-advisors are available 24/7 and allow you to manage your investments at any time.
Diversification of your portfolio
Robo-advisors often offer pre-built portfolios that are broadly diversified and therefore minimize risk.
Impact investing refers to investments that seek not only to generate financial returns, but also to have a positive social or environmental impact. Impact investments can, for example, flow into companies, projects or organizations that work to fight poverty, promote education or improve the environment.
To do impact investing, you can:
Look for impact investment funds that invest in companies or projects that pursue specific social or environmental goals
Talk to banks or financial institutions that offer impact investing products
Search for individual impact investment opportunities, for example via crowdfunding platforms
6. purchase of green bonds
Tip 6: Consider buying green bonds.
Green bonds are bonds issued by companies or governments, the proceeds of which are used for environmentally or climate-friendly projects. Examples of environmentally or climate-friendly projects that could be financed with green bonds include renewable energies, energy efficiency or waste prevention.
To buy green bonds, you can:
Search for green bond offerings from companies or governments
Talk to banks or financial institutions that offer green bonds
Buy green bonds through a broker or other platform
Please note that green bonds, like any other bond, carry risks, such as the risk of default by the borrower or the risk of changes in interest rates. It is therefore important to thoroughly research the green bonds you are considering and understand the risks of bond investing before buying green bonds.
7. purchase of eco-shares
Tip 7: Consider buying eco-shares.
Eco stocks are shares in companies that specialize in environmental or climate-friendly issues, such as renewable energy, energy efficiency, or environmental technology. Buying eco stocks can be a way to invest in companies that are committed to protecting the environment.
To buy eco stocks, you can:
Search for shares of companies that specialize in environmental or climate-friendly issues
Search for equity funds that invest in eco-shares
Buy eco shares through a broker or other platform
Please note that buying stocks always involves risks, such as the risk of price losses or company bankruptcies. It is therefore important to thoroughly research the stocks you are considering and understand the risks of stock investing before you buy stocks.
8. purchase of eco funds
Tip 8: Consider buying eco-funds.
Eco funds are investment funds that invest in companies that specialize in environmental or climate-friendly issues, such as renewable energy, energy efficiency, or environmental technology. Buying eco funds can be a way to invest in a wide range of companies that are committed to protecting the environment.
To buy eco funds, you can:
Look for eco-funds that invest in companies that specialize in environmental or climate-friendly issues
Talk to banks or financial institutions that offer eco-funds
Buy eco funds through a broker or other platform
Please note that buying mutual funds always involves risks, such as the risk of losses due to poor performance of the investments held by the fund. It is therefore important to thoroughly research the investment funds you are considering.
9. purchase of eco-bonds
Tip 9: Consider buying eco-bonds.
Eco-bonds are bonds issued by companies or governments, the proceeds of which are used for environmentally or climate-friendly projects. Examples of environmentally or climate-friendly projects that could be financed with eco-bonds include renewable energy, energy efficiency or waste prevention.
To buy eco-bonds, you can:
Search for corporate or government eco-bonds
Talk to banks or financial institutions that offer eco-bonds
Buy eco-bonds through a broker or other platform
10. purchase of microcredit
Tip 10: Consider purchasing microloans.
Microloans are small loans typically made to people in developing or other low-income countries to help them start or operate a small business. Buying microloans can be a way to invest in socially responsible investments while making a financial profit.
To buy microloans, you can:
Search for microcredit offers from organizations that specialize in granting microcredits
Talking to banks or financial institutions that offer microloans
Buy microloans through a broker or other platform
11. purchase of social impact bonds
Tip 11: Consider buying social impact bonds.
Social impact bonds are financial instruments that aim to solve social problems while generating financial returns. They are often issued by governments or non-profit organizations and can invest in education, health or poverty reduction, for example.
To buy social impact bonds, you can:
Search for social impact bond offerings from governments or nonprofit organizations
Talk to banks or financial institutions that offer social impact bonds
Buy social impact bonds through a broker or other platform
Please note that there are always risks associated with buying social impact bonds, such as the risk of losses due to poor performance or the risk of changes in interest rates. It is therefore important to thoroughly research the social impact bonds you are considering and understand the risks of bond investing before purchasing social impact bonds.
12. purchase of common good shares
Tip 12: Consider buying common stock.
Common good shares are shares in companies that undertake to consider the welfare of society and the environment in addition to financial profit. Gemeinwohl shares are often issued by smaller or medium-sized companies that are committed to social and environmental responsibility.
To buy common stock, you can:
Look for common good stocks from companies that are committed to considering the well-being of society and the environment in addition to financial gain
Buy common stock through a broker or other platform
Please note that buying stocks always involves risks, such as the risk of price losses or company bankruptcies. It is therefore important to thoroughly research the stocks you are considering and understand the risks of stock investing before you buy stocks.
Conclusion: Sustainable investment
There are many ways to invest in an environmentally and climate friendly way while making a financial gain. Whether one chooses impact investing, green bonds, eco-shares, eco-funds, eco-bonds, micro-loans, social impact bonds, or common good shares depends on personal goals and preferences. It is important to thoroughly research the various options and weigh the risks before investing. An automated robo advisor can help find the right investment and manage the investment.
Not investment advice or a recommendation to buy.
All information provided here does not constitute investment advice or a recommendation to buy. All statements are my general published opinion. I have obtained the information from my experience as a private investor. This experience report cannot and is not intended to replace personal investment advice from professionals.
