How to Participate as a Sustainable Investor?
Examine the product information sheet to determine how “green” the investment product really is and whether it corresponds to your own ideas of a sustainable investment.
Ask your financial advisor for a sustainability rating, but keep in mind that ESG ratings in the EU are ongoing, and they will come into force in 2026. Until then, it is best to use as a reference products that correspond to the EU taxonomy.
Ask your financial advisor to explain the sustainability approach to you in detail. Ask them questions on the topic in order to obtain unbiased advice towards investment options.
Step 2: Check
Check documents such as the prospectus, the key information document (KIID) and the website of the funds or the fund company about the most important points for you, e.g. costs, risk etc.
Check the investment policy, the investment objective and the fund volume (larger funds correspond to better chances of seeing a return in the long-term).
Check whether the fund is active or passive (if active, check whether the fund refers to a benchmark and past performance). It should be noted that past performance is only used as a reference to reach the benchmark and not an exclusive indication.
Consider the fees, inflation rate and effect on returns as well as whether the fund product offered is classified as UCITS fund (which usually offers more transparency).
Step 3: Remember
Though research indicates sustainable funds are seeing an increase in net returns, always base your decision on your personal circumstance, risk appetite and goals.
Check and calculate your risks before investing. For instance, past investments in solar systems or wind farms have shown that sustainable investments do not necessarily carry lower risks than traditional products.
Invest in What Matters Most
Avoiding Negative Impact
Investment products designed to minimise harmful effects on the environment and society, such as reducing greenhouse gas emissions, respecting human rights, and protecting biodiversity.
Impact Investing
Investments aimed at generating measurable positive social and environmental impacts, contributing directly to the United Nations’ 17 Sustainable Development Goals (SDGs).
Compliance with EU Taxonomy
Products adhering to the EU Taxonomy classification, ensuring a portion of the investment goes toward environmentally sustainable economic activities.
Targeted Investments
Investments focused on specific sustainability sectors such as renewable energy, green mobility, and eco-friendly technologies.
Active Shareholder Engagement
Funds that exercise shareholder voting rights to influence corporate policies through direct engagement with companies’ management teams.
Best-In-Class Selection
Products selecting only top-performing companies in terms of sustainability within specific industries, ensuring adherence to high ESG standards.
Exclusionary Screening
Investment funds that deliberately avoid companies involved in activities like weapons manufacturing, coal production, or tobacco industries, following a strict exclusion policy.
Ethical Retirement and Savings Plan
Savings and retirement plans that invest in mutual funds focusing on companies with strong labour and environmental practices.