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Sustainable investment Switzerland: Sustainable investment in Switzerland

Sustainable investing is in vogue and is an increasingly popular topic, especially in Switzerland. But what does it actually mean to invest sustainably? And how can you ensure that your money really has a positive impact and is not just "greenwashed"?

In this article, you will learn the basics of sustainable investing in Switzerland, from the most important investment options to tips on how to recognise and avoid greenwashing.

Table of contents

What does sustainable investing mean?

Sustainable investing means investing money in companies or projects that are intended to have a positive impact on the environment and society in addition to financial returns. This often involves ESG criteria (environmental, social and corporate governance) are used to evaluate companies. This form of investment therefore takes ethical and ecological values into account in addition to returns.

Why is sustainable investment important?

Many investors today want to achieve more than just returns - they also want to have a positive impact on the environment and society. Sustainable investing makes this possible, Financial flows specifically in sustainable companies and thus, for example, the Climate targets of the Paris Agreement to support sustainable development. Investors in Switzerland also have the advantage that more and more banks and asset managers are offering sustainable investment products.

How can I invest money sustainably?

ESG criteria and their significance

Most sustainable investments are based on the ESG criteria:

  1. Environment: Companies are assessed according to how they use resources, reduce emissions and are committed to environmental protection.
  2. Social (social): This deals with topics such as occupational safety, social justice and dealing with employees.
  3. Governance (corporate governance): The management ethics and transparency of a company take centre stage here.

Difference between sustainable investing, impact investing and donations

Sustainable investing Switzerland with sustainable ETFs

There are different approaches to how your money can make a difference:

  • Sustainable investing: Investments in companies that fulfil good ESG criteria.
  • Impact Investing: Direct investments that aim to achieve measurable, positive social or environmental impacts.
  • Donations: This is about pure support, without any financial return.

 

Sustainable investments are usually less radical than impact investing and tend to focus on established companies that fulfil certain sustainability standards.

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What investment opportunities are there for sustainable investing?

Sustainable ETFs

For investors who want to invest money sustainably, we offer sustainable ETFs a convenient and cost-effective option. These ETFs include companies that are rated according to strict ESG criteria and are represented in various markets. Here are some popular sustainable ETFs:

  1. iShares MSCI World SRI ETF: This ETF invests in the world's leading companies that fulfil high environmental, social and corporate governance standards.
  2. UBS MSCI Switzerland IMI Socially Responsible ETF: This ETF offers access to Swiss companies that fulfil the ESG criteria. Perfect for Swiss investors who want to invest locally.
  3. Lyxor MSCI EMU ESG Leaders ETF: Invests in the best companies from the eurozone that are characterised by strong ESG performance.

No investment recommendation.

Sustainable funds and their differences

In addition to ETFs, there are also classic Fundthat specialise in sustainability. These funds often offer more active management and promise more targeted investments in companies that have a Positive ESG assessment have. However, the fees for actively managed sustainable funds are often higher than for ETFs, so it is important to keep an eye on the costs.

Sustainable robo-advisors

If you don't want to take care of the selection yourself, sustainable Robo-Advisors an interesting option. These digital asset managers offer portfolios that are based on ESG criteria. A leading provider in Switzerland is Inyova. Inyova offers an intuitive platform where you can customise your portfolio according to your personal sustainability goals.

What is greenwashing and how can you avoid it?

Unfortunately, sustainable investing is also characterised by the phenomenon of Greenwashing. Greenwashing means that companies and funds only appear superficially green without promoting real sustainability. Here are some tips to avoid greenwashing:

  • Question the ESG valuations: Sometimes companies only fulfil minimal requirements in order to position themselves as sustainable.
  • Pay attention to transparency: See how much a fund actually reports on the sustainable activities of the companies it invests in.
  • Compare different providers: It is worth comparing different financial institutions and their sustainable investment products.

Advantages and risks of sustainable investments

Advantages

Potential returnsSustainable investments can be just as profitable as traditional investments.

  • Positive effect: You support companies that are committed to a better world.
  • Fewer risks: Companies that fulfil ESG criteria are often better protected against regulatory risks and environmental damage. Example: If an oil rig causes environmental damage, the share price falls enormously - so not having it in the portfolio in the first place can reduce risks.

Risks

Greenwashing: Not all funds and ETFs that claim to be "green" actually are.

  • Fees: Sustainable funds and ETFs can have higher fees, especially if they are actively managed.
  • Market fluctuations: As with all investments, there are risks involved and sustainable investments are not immune to price fluctuations.

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Conclusion: Sustainable investing in Switzerland

Sustainable investing in Switzerland offers you the opportunity to invest your money sensibly and ethically. But be careful: not everything that looks green is sustainable. The fees for sustainable investment products are often higher and there is a risk of greenwashing.

Think carefully about which Fund, ETFs or Robo-Advisors you want to invest in, and inform yourself well. If you are looking for low-cost, sustainable investment opportunities, take a look at our Comparison of the best robo-advisors an.

2 responses

  1. We think it is important to inform our customers about sustainable investment. Thank you for this really exciting and understandable blog post for everyone! Great interview with the 3 experts.

  2. To be honest, I never gave much thought to the fact that my 3a funds represent the financing of institutions, so to speak. In other words, that they work with it and that I can use the ESG aspect and securities to consciously control who gets "financial aid" and who doesn't. It may sound strange, but it was a bit of an eye-opener for me 🙂

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