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Berlin (dpa) - A wind park in Norway's fjords, a hydropower plant with an imposing dam in Portugal - on a digital “investment trip”, a fund company from southern Germany shows its customers where their money is.
Sustainable investments are booming - and many providers advertise with tempting images of nature.
But is sustainability always included when it says sustainability?
At least that is what consumer advocates and experts doubt and call for clearer criteria for the growing market.
The trend is clear: More and more people find it important not to invest their money in any company, but also to have a clear conscience.
At first it was mainly large investors, but now more and more private individuals are investing in products that are committed to the environment, social issues and fair and responsible dealings with employees.
According to the industry association BVI, the volume of sustainable funds has grown by more than 100 billion euros within a few years.
In 2019 alone, private investors almost doubled their investments in this area, as data from the Forum for Sustainable Investments show.
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In terms of the overall market, sustainable funds are still a niche, but the green zeitgeist is driving the topic forward, say experts: Fridays for Future, the coal exit, the celebrity of activist Greta Thunberg.
According to a survey for the Federation of German Consumer Organizations, every second consumer is basically willing to invest money sustainably.
However, almost four out of five do not want to do without returns.
Andreas Oehler, who, as a professor of finance at the University of Bamberg, deals with sustainable investments, says that, as a rule, you don't have to.
“The previous rule that sustainable investing meant sacrificing returns no longer applies,” he says.
In the past few years, funds that work credibly sustainably have generated the same or higher returns than conventional investments with the same risk.
You can invest sustainably in a variety of ways: from direct investments in wind turbines and green federal bonds to actively managed funds and ETFs that replicate a stock index.
Usually stocks of companies that earn money with coal, oil, alcohol or weapons are excluded from such funds.
But there are no general criteria or any kind of seal of approval.
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Experts consider this to be risky.
"Sustainability is a fantastic advertising promise," says consumer advice center boss Klaus Müller.
However, it is often difficult to check how sustainable a company or product actually is.
“That is why we urgently need a legal definition of sustainability that gives consumers security,” he demands.
In Oehler's view, for example, it must be determined by law whether nuclear power is sustainable and whether only banned weapons or all weapons should be excluded.
In addition, threshold values should be set: For example, the question is whether or not five percent of sales in a sustainable fund should come from child labor or nuclear energy.
Oehler considers it difficult to rule out such a thing entirely.
"You can hardly do that if you want to diversify your investment widely around the world - and I would recommend that," he says.
The European Union is working on a classification system for ecologically sustainable management.
In addition, bank advisors could soon be obliged to ask private customers whether they would rather invest their money sustainably.
But how can consumers be sure that sustainable investments really lead to more sustainability, i.e. fewer greenhouse gases, cleaner seas or fewer weapons?
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The economists Marco Wilkens and Christian Klein come to the conclusion in a report for the consumer advice centers that direct effects via the capital market are possible, but currently hardly detectable.
"Offers from the financial industry that advertise with a direct contribution from their investment products to specific sustainability goals and at the same time promise returns that are customary in the market must therefore be critically scrutinized," conclude the consumer advocates.
"The great danger for consumers is that providers promise the green from heaven without actually moving," says Müller.
Oehler demands that they must clearly demonstrate that they have kept their promises.
"The providers should have to submit a defined catalog of information."
However, he warns against expectations that are too high: “You shouldn't succumb to the illusion of getting exactly what you want.
Environment, social issues and good corporate governance can only be obtained approximately and with modest transparency. "
But that is no reason not to invest in sustainable funds.
© dpa-infocom, dpa: 210225-99-584351 / 2
Market report Forum for Sustainable Investments
Expertise sustainable investments for vzbv
EU Action Plan on Financing Sustainable Growth