Your decision on where to keep, save and invest your money is more powerful than you might think. Your money is not just “sitting in the bank”. Any institution where you store your money - pensions, investments, and (especially!) your everyday bank account - is investing it on your behalf and could be investing to have a positive impact.
In many cases, financial institutions still invest heavily in the fossil fuel sector and deforestation, meaning your money might be indirectly supporting these activities.The good news is that there are many climate-friendly banks and investment funds available.
Choose banks, funds and providers that can make your money work harder for you, your community, and nature. You’ll also send a clear signal to the markets that people want to support cleaner, more responsible businesses and financial markets.
78% of publications report a positive relationship between corporate sustainability and financial performance.
European securities which are aligned with the Paris Agreement outperformed the market. 875 Companies, 10 Sectors, 7 years backtest, 60% outperformance
Between 2004 and 2018, there was no trade-off in the financial performance of sustainable funds compared to their traditional peers. In fact, sustainable funds demonstrated lower downside risk.
For example, in the UK, moving the national average pension wealth from a broad global equity (stock) index to the sustainable equity fund was estimated to be up to 21 times more effective than the combined annual carbon savings of switching to a renewable electricity provider, substituting all air travel with rail travel and adopting a vegetarian diet.
There is a positive relationship between high performance on relevant ESG issues and superior financial performance.