Sustainability is now an integral part of the investment world. Not only institutional investors, but also increasingly private investors are taking the step to contribute to a better, often greener world. The big question is: with which form of investing do you really make a difference?
Investing for a sustainable future can be done in various ways. This way you can choose to invest sustainably. With this form of investing you send an important signal by investing in companies that take social responsibility.
You should think of companies that consider a cleaner environment, better climate and the well-being of people to be important. These types of funds will never invest in arms producers or companies that violate human rights and damage the environment.
The 'greenest' form of investing in sustainability is impact investing. Just as with sustainable investing, you make a positive contribution to the environment or society. The big difference, however, is that you go one step further: with impact investing you contribute to positive change. Consider, for example, the construction of a wind farm to stimulate sustainable energy production or investing in microcredit to support small entrepreneurs in developing countries.
It is often thought that both sustainable investing and impact investing are at the expense of returns. Hans Stegeman, Head of Investment Analysis and Economics at Triodos Bank, doubts this. "In the longer term, there is no reason and evidence that these forms of investing are at the expense of returns. In fact, if the global community adheres to the Paris agreements and wants to achieve the Sustainable Development Goals in 2030, you could assume that sustainable investments in particular will score better in the future than non-sustainable investments. "
Invest in multiple themes
As an investor, it can be complicated to select sustainable funds. What do you attach the most value to, green energy or small entrepreneurs in developing countries? If you invest impact with Triodos Bank, you don't have to choose. Here you can invest in a sustainability fund where you can do your bit at various levels.
With Triodos Bank's sustainable impact funds, you do not invest in one sustainable topic, but in a broad spectrum of themes. The fund therefore invests in green energy as well as in sustainable agriculture, organic food and microfinance in developing countries.
Because you invest in different sectors, countries and investment categories, the risk is spread. In addition, the risk remains relatively low by investing in funds that mainly provide loans. Because loans are more predictable than, for example, shares, you run less risk.
Make the difference at one of the most sustainable banks in the world
Do you also want to build on your assets and at the same time work on a broad impact? Check the Triodos Bank website and find out more about investing at one of the most sustainable banks in the world.