🌱 Turn your money green 🌱

Sustainable investing: How your money can help save the planet

 In the past few years, you’ve probably seen phrases like ‘green’, ‘ethical’,‘sustainable’, or ‘socially-responsible’ investing. Although they may sound like slightly different investing methods, they are all the same.

Not sure what it all means? Well, grab a cuppa and we’ll take you through it! ☕️

🌱 Sustainable investing is putting your money into companies that are actively doing social or environmental good to bring about social change. This could be anything from your local bakery ethically sourcing all their ingredients, to a large corporation that builds and supplies wind turbines. This is a rapidly growing part of the overall investing world (the amount being invested sustainably more than doubled in 2021, according to sustanabilitymag), and with the climate crisis at our door, it's set to become larger and much more significant.

🌱 When you’re thinking of investing in this way, it’s vital to avoid businesses that are seen as having a negative social impact: they may be harming the planet and its inhabitants. These can include tobacco, gambling, weapons, and fossil fuel companies, for example. You can seek advice from an independent financial advisor, but it’s essential to do your own research too and align your investments with your personal values.

🌱 You’re not restricted to businesses in the UK either. There are many parts of the world that are keen for investors to help them make a difference. And it’s even more urgent after the COVID-19 pandemic. Many developing countries need foreign investors to help recover from the last two years.

Investing – the battle of the sexes!        

Did you know that women tend to invest more sustainably than men? It’s true.

BNY Mellon recently released a report which showed that 53% of women would invest (or invest more) if an investment fund could be shown to have a purpose for good. This isn't an isolated study, either.

Boring Money also took a look at sustainable investing and found that 48% of women chose investments which focus on climate change (compared to 41% of men), and 45% want sustainable investment to be an area of focus. 

Although women tend to invest less money than men, the money they use tends to go into more ethical businesses.

If you want to be a part of the shift towards positive-impact investing here’s a guide to help you on your way: Good Guide to Impact Investing.

Organic September        

What about going organic if you want to make a difference to the planet in your day-to-day life? It can make a positive impact on your health at the same time too.

The Soil Association is promoting Organic September to highlight the benefits of organic food and farming. What a great way to look after yourself!

Want to know more? Check out their campaign here.

Figure of the Week        

71% of people in the UK want sustainable pensions

If you want to make sure you’re investing wisely and ethically, you’re not alone. According to Nest, a government scheme set up in 2008, the majority of us want our investments to consider people and the planet. 

Many pension fund companies state in their investment criteria that they want similar things. But don’t forget to do your own research and ask questions of your pension provider – do they invest in businesses and projects that harm the planet? If so, you can request that they make more ethical investments and move to net zero.

Make your money count!

Making your pension green        

It may seem a way off to many, but blink and retirement will be just around the corner. If you’re thinking of sustainable investment, don’t forget to look at your pension too.

Is the money you put into your pot invested sustainably? Many people inadvertently invest in businesses that contribute to the increasing amount of CO2 emissions every year.

According to Make My Money Matter getting a green pension is 21 times better at cutting your carbon emissions than not flying, eating less meat, and switching to a green energy supplier combined!

You can find out about your pension’s credentials by asking your financial advisor or your finance department how your money is used. You can also find out for yourself by using an online rating app like isitgreen.

Summer Meets Money Challenge        

Wow! We’ve had some amazing entries for our #smartpursechallenge this year.

We asked you to send us your pictures of money and summer fun, and, boy, did you rise to the challenge!

We’ve enjoyed looking through all your photos and will be announcing the winners in our next newsletter. 🎉

Money School in the App Store        

If you want to know where to start with sustainable investing, we can help.

Simply sign up for our Money School App, and we'll guide you through simple ways to make your money matter. As well as a range of courses on how to get started with an investment, it also includes the full four-session course on how to invest sustainably, led by Jessica Robinson and Olga Miler (worth £49 if purchased as a single course on our web but only £7.99 a month within our Money School App). Now, that's a worthwhile investment!

Sign up today and enjoy our Money School App! Why not give it a go with a free 7-day trial?

Download the App

Meet the expert – Jarrath Cush        

Jarrath is an FCA-authorised financial advisor hailing from Whitely in Hampshire. 

He believes that the key to great relationships with clients is the power of listening.

He’s also passionate about making a difference to the planet.

Jarrath says:

“I have had the pleasure of learning about the hopes and dreams of individuals and couples all across the south of the UK and their plans for the future. Taking the time to listen has enabled me to guide them to a better, and sustainable, financial future.”

Money Inspiration
@smart.purse          

We love hearing from you. Send your comments and feedback to: 

team@smartpurse.me

Always remember to consult an independent financial advisor for personalised investment advice.

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