Investing in the planet’s future has never been as important as it is now. We can support companies and organisations that prioritise the environment and sustainability. In this way, we can help make changes that will have an impact on our planet and our futures.
What is green investment?
Green Investment means investing activities that align with environmentally friendly business practices (Investopedia).
There are a few ways to make green investments. You can bank with a sustainable bank. Or, you can invest with a sustainable investment company or invest in renewables. An investment like this has two potential positive outcomes – return on investment and support for a worthwhile project.
Even if you don’t have the money to make a large financial investment, you can think about where you keep and spend your money.
What is sustainable banking?
According to Deloitte, sustainable banking means that the provider integrates Environmental, Social & Governance criteria into their banking system. Capital markets used to focus on two criteria – risk and return. Sustainable banking adds a third criteria – impact.
As an individual and a business, you want to choose a bank that meets all three criteria and has a positive impact. Blue Patch members that meet these criteria include banks & investment centres.
Triodos Bank offers accounts for individuals, businesses, and charities. They offer impact investments in three categories;
- pioneer for small businesses,
- global equities for larger companies that are making an impact, and
- sterling bond for companies with a good green track record.
Think about other areas of banking where you could choose a service provider that is ethical. These include mortgages, savings accounts, loans, and investments.
The ideal finance company will make positive investments into sustainable projects from their profits. These could include renewable energy, wind farms, hydroelectric schemes, biogas generators or geothermal plants.
Alternatively, they might support projects that contribute to sustainability in other ways. For example community projects or recycling and waste management projects.
Use financial advisors who have a focus on the sustainable sector and ethical standards. They can advise you on banking, saving, borrowing and investing in companies that fit in with your own ethics.
Look for investment firms that provide investment into ethical companies, green energy, housing, healthcare and so on. By investing this way, you can earn dividends and interest while supporting worthwhile companies and development.
Some firms allow individual investors to support projects in a similar way to crowdfunding, offering a platform for individuals to choose projects to support in reaching their target.
In all cases, consider where you place your money and do your research. Investments can decrease as well as increase. Use your money wisely and you will be able to benefit yourself and others at the same time.
Banking and investment finance may not be the first thing that an individual or a company thinks of when it comes to sustainability. But sustainability is important in every area of our lives. By making green investments into renewables and sustainable businesses, we can all play our small part in the future of the planet.
You can find a list of sustainable financial services providers in our directory