The deadline for ISA filings is fast approaching. But where should green-minded investors place 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 with freak floods, forest fires and heat domes. ISAs are here to fight back like a hard-working, everyday slugger. ISAs are a strait-laced method to earn a return for your hard-earned money. They have a lot of small punches which gives them an edge. But, realistically, is there any real competition?
Research has shown that investing with green and ethical funds is a powerful way to achieve collective, meaningful changes without sacrificing returns. AnalysisMorningstar’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 shows that greening your investments is better for the planet than veganism. 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 part the Principles of Responsible InvestmentUN-supported network, an independent body that adheres six key principles of sustainable investments. 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.
Fossil fuels power more than 80% of the world’s current energy needs. 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 that the combination of climate change and an increasing global population will lead to almost 25% of all children becoming unemployed. will live in areas of extremely high water stress by 2040. To save water and deliver it better around the globe, it is necessary to invest in resource management.
Image by Alkags
Clim8 is a platform that supports 500+ companies through actively managed portfolios. Please see the following examples of companies that have invested in Clim8 to fund climate solutions under the above 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
