Sustainable Investments - Between Ethical Claim and Reality

Sustainable investments have increasingly come into focus in recent years – and for good reason. More and more people want to not only invest their money safely and profitably, but also take responsibility in doing so. But sustainable investing is more than just a trend. It's a way to secure one's own financial future while actively contributing to the environment and society.

But how exactly does sustainable investing work, what should you pay attention to, and how can you avoid falling into the traps of so-called "greenwashing"? As certified advisors for sustainable investments, we help our clients stay on top of things and make truly sustainable decisions for their financial future.

1. What are sustainable investments?

Sustainable investments are investments that, in addition to financial returns, also consider ecological and social aspects and good corporate governance. These aspects are often summarized under the term ESG (Environmental, Social, and Governance):

• Environmental : The impact on the environment, for example through CO₂ emissions, resource consumption or the protection of ecosystems.

• Social : The social aspects such as working conditions, respect for human rights and community involvement.

• Governance : Good corporate management, which includes fair business practices, transparency and ethical behavior.

A sustainable investment aims to support companies and projects that actively promote these values.

2. Differences between ESG, SRI and Impact Investing

There are various approaches to sustainable investing. Understanding them is important for choosing the right investment strategy.

• ESG (Environmental, Social, and Governance) : These are criteria used to evaluate companies and investments. ESG investments consider environmental, social, and corporate factors without necessarily aiming for a direct impact. The goal is to identify companies that operate more sustainably than their competitors, but not necessarily to exclusively support sustainable companies.

• SRI (Socially Responsible Investing) : SRI goes a step further than ESG and specifically excludes companies or industries considered unethical, such as weapons manufacturers or tobacco companies. This approach focuses on integrating ethical beliefs into the investment process and excluding unethical investments.

• Impact investing : This approach is not just about meeting sustainability criteria, but also actively creating positive change. Impact investments specifically support projects that achieve measurable social or environmental impacts, such as renewable energy, educational projects, or social housing programs. The primary goal here is to achieve not only financial returns but also a direct positive impact on society or the environment. This approach is the most difficult to implement because it requires the investor to directly exert influence over the respective companies.

3. Beware of greenwashing

One of the biggest problems investors should avoid when making sustainable investments is greenwashing . This is a marketing strategy that portrays companies or financial products as sustainable when they are not. This leads investors to believe they are doing something good, even though their investments may have little or no positive impact.

To avoid greenwashing, it is important to take a close look when selecting sustainable investments.

Certifications and independent assessments can help verify the credibility of a financial product. As certified advisors for sustainable investments, we ensure that the products we recommend meet strict sustainability standards and that our clients are investing in truly sustainable companies.

4. Sustainable investments as part of retirement planning

Sustainable investments are an excellent long-term building block for retirement planning. There are a variety of sustainable funds and ETFs that offer a good balance of returns and security while also having a positive impact on the environment and society. Many of these funds invest in companies that are actively committed to climate protection, invest in renewable energies, or demonstrate social responsibility.

Especially in the context of retirement planning, it's important to focus on long-term developments. Sustainable companies often have the advantage of being more stable and resilient in the long term because they rely on future-oriented business models. At the same time, your investment actively contributes to tackling global challenges such as climate change.

5. Why sustainable investments are a win-win situation

Sustainable investments kill two birds with one stone: Not only do you secure a solid financial future, but you also actively support companies and projects that have a positive impact on the world. Especially in today's world, where climate change and social injustice are becoming increasingly urgent, investments can make an important contribution to solving these problems.

Furthermore, sustainable investments can also be financially attractive in the long term. Companies that focus on environmental and social responsibility are often more innovative and resilient to crises. They therefore have a good chance of long-term success and stable returns.

Conclusion: Invest sustainably – sensible and profitable

Sustainable investments not only offer the chance of attractive returns, but also the opportunity to actively contribute to the future of our planet. Whether through ESG criteria, SRI strategies, or impact investing – there are many approaches to investing your money wisely and responsibly. However, not all offerings are truly sustainable. Therefore, it is important to carefully select the right products and ensure transparency.

As certified advisors for sustainable investments, we support our clients in finding the right investment strategy that is both financially and ethically sound. Together, we can find a solution that secures your financial future while making a positive contribution to the world of tomorrow.