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What's the actual impact of my sustainable investment?

There’s a lot of buzz around sustainable investing.

For those of you, who aren’t yet familiar with this topic, sustainable or impact investing refers to investments made into companies, organisations, and funds that contribute positively to the planet and society’s well-being.

One point that is emphasised again and again is the impact that sustainable investing has on the environment and society.

But what does that mean?

What kind of impact is it?

Human beings love relatable examples. That’s why we want to give you some actual examples of what that impact could look like.

With Grünfin you can match your money with your values. Specifically, this means we offer you three focus areas or themes on which you can align your portfolio: climate, equality, and health. In this way, you can tailor your portfolio towards the themes you care most about.

That’s why we also like to call it ‘values-based investing’.

The cool thing is, you don’t have to limit yourself to just one theme. For a wide-based portfolio, you can select one, two, or all of the available themes and Grünfin will invest your money in instruments that promote your values.

Well, that’s great stuff, isn’t it?

But still, you probably don’t have an idea about what kind of impact you can make with that.

To give you a better feeling about this, we have now integrated a cool new feature within your portfolio.

In your portfolio, you can now see something like this:

  • Compared to the broad stock market, companies in your portfolio emit 52% less CO2. That’s similar to you choosing the bus over a diesel car for the same distance.

  • Your portfolio supports more women sitting on corporate boards (39 women for every 100 people) than the broad stock market (33 women for every 100 people).

  • Companies in your portfolio are working towards the promise of precision medicine to improve and extend the lives of as many people with cancer and hematologic disorders.

Now we’re talking!

How do you feel about it?

You now get a better sense of what you can achieve with your investment, don’t you?

But why do we feel these examples are important?

The answer is simple. We want to make sustainable investing mainstream and accessible for everyone. No matter if you’re new to investing or an old stager in the field. It should be tangible and vivid, not too abstract.

But let’s dig a little deeper.

Besides the fact that these examples are actual and tangible, there are other points why they are so important.

The first example is about CO2 (carbon dioxide and equivalents) emissions. These emissions are the main driver of global warming.

At Grünfin, we are entirely focused on sustainable investing. That’s why we make an effort to find those fund managers and ETFs that not solely focus on the financial returns but also the impact of their portfolios. We, therefore, invest in companies that are significantly greener than the broad stock market and we want to show it.

If we just said your portfolio emits 52% less CO2 in comparison to the broad stock market, that would be, again, too abstract.

So we added a concrete example: bus vs. diesel car.

The second example is about the number of women sitting on corporate boards.

Boards oversee the strategy and key activities in a company. And this can have a big impact on society and the planet.

We probably agree that a healthy balance of male and female is much better than male-only, which, historically, was and still is the norm in boards.

Of course, 39 women on a board is still very far from an equal balance. But at least, it’s a bit better than the average of 33. We have to start somewhere. And at Grünfin we are big supporters of that topic!

Since we’re talking about it, a little side fact: Our company was founded by two women, Karin and Triin, and also half of our employees are female. This balance is something we’re really proud of!

The third example refers to healthcare innovation. We all know it all too well by now that advances in medicine and medical research are crucial for us humans. It improves, protects, and extends our lives.

Therefore, we study company reports and give you a brief summary of all the great things the companies in your portfolio are doing.

How do we gather that data?

We look at public as well as private databases, fund reports, and company filing. That said, it’s not the end of the line yet. We’re just scratching the surface. Sustainable investing is still the new kid on the block.

But the good news is that it’s getting more popular and enjoys more and more attention.

The public, meaning you and us, have the power to put pressure on companies. Nowadays, companies have more responsibility to demonstrate that they strive to higher sustainability standards.

Still, there’s a long way to go.

These standards are very subjective. There’s no global standard yet, which sustainability metrics a company should disclose. And unfortunately, this data still heavily relies on self-reporting and voluntary disclosure.

Nevertheless, we are on the right track.

The change will not happen immediately, but it will happen.

It may take some time or be difficult. But at Grünfin, we see opportunity in difficulty and push for that change.

We believe that sustainable investing can help the world and the environment.

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Start your sustainable investment with Grünfin. We help you invest your money where your values are.