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The deadline for ISAs is rapidly approaching. But where should green-minded investors invest their money? We take a look at new-kid-on-the-investing block, Clim8, and their six environment-focused fund themes
It’s the bout of the century. It’s the bout of the century. £17.5tn per year in lost economic output, it’s the undisputed disruptor of the world, and Code Red for Humanity’s existence … the climate crisis!
And in the blue corner, weighing in at an annual maximum of £20,000 of savings per person, with an upcoming deadline of 5 April, it’s the individual savings account better known as … ISAs!
Climate change is destroying the planet, causing forest fires, freak floods, and heat domes. ISAs are here to fight back like a hard-working, everyday slugger. ISAs are a straight-laced way to get a return on your hard earned cash. They throw lots of small punches that give them an edge. Is there really a contest?
Research has shown that investing with green and ethical funds is a powerful way to achieve collective, meaningful changes without sacrificing returns. AnalyseMorningstar’s data provider, Morningstar, has found that six of the 10 Europe-based sustainable equity fund providers delivered higher returns than their counterparts that are not sustainability focused over the past ten years.
Research has shown that investing in greener alternatives to veganism is more beneficial for the planet. Image by Vlad Hilitanu
What’s more, research has shown that “greening” your investments is 27 times more effective at reducing your carbon footprint than the combination of ditching flying, using an environmentally friendly energy provider and eating a plant-based diet.
Clim8 has entered the fray. The new green investment platform will invest billions in clean energy and truly sustainable companies to end climate catastrophe.
“By stopping the greenwashing and investing only in companies that are leading the way in areas like clean energy, electric mobility and sustainable food, we can target our investments for the greatest possible good,” says Duncan Grierson, CEO of Clim8. “Nothing less will do.”
Witnessing the planet taking a beating, it’s easy to feel helpless, but even the smallest savings can make a difference. 2020 will be the year of the Earth. the market value of all UK adult ISAs was a record £620bn.
Clim8 is a part of the Principles of Responsible InvestmentUN-supported network, an independent body, adheres to six principles of sustainable investing. It has more than 500 companies and funds in its portfolio, all of which align to the UN’s sustainable development goals.
So it’s throwing its full weight behind businesses that are good for the planet. No tobacco, fossil fuels or arms. Here are the six investment focus areas that Clim8’s ISAs channel funds into, and why money to build up these sectors is crucial.
Today, fossil fuels are more powerful than ever. 80 per cent of the world’s energy. To meet the Paris accords, the International Energy Agency states that we must deliver 630 megawatts of solar projects each year and 390 megawatts of wind infrastructure.
Image: Zbynek Burival
Unicef believes climate change and a growing world population will mean that nearly a quarter of all children will die. By 2040, they will be living in areas with high water stress.. To save water and deliver it better around the globe, it is necessary to invest in resource management.
Image: Alkags
Clim8 invests in 500+ companies and funds via their actively managed portfolios. Here are some examples of companies in their portfolio who are funding climate solutions under these themes. Click here.
Your capital is at risk when you invest. Tax treatment is dependent upon individual circumstances and subject to change. This information is not intended as advice or a recommendation.
Main image: Micheile
