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.
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.
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.
Most sustainable investments are based on the ESG criteria:
There are different approaches to how your money can make a difference:
Sustainable investments are usually less radical than impact investing and tend to focus on established companies that fulfil certain sustainability standards.
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:
No investment recommendation.
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.
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.
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:
Potential returnsSustainable investments can be just as profitable as traditional investments.
Greenwashing: Not all funds and ETFs that claim to be "green" actually are.
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
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.
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 🙂