Lately, everyone is talking about sustainable finances. Yet, what does it actually take to make the world a better place through investing?
Sustainability is becoming increasingly important and urgent for the planet and its inhabitants. We choose, buy and behave more responsibly in our aim to avoid damaging the planet and our future with our actions. Unfortunately, however, the financial sector didn’t get the memo. Although “sustainably labelled” funds worldwide manage millions, their positive impact is minimal.
Knowing this, you might be wondering if your money can really make a difference. The answer? Yes, if you choose impact investing.
What is impact investing?
The technologies and business models we fund today will affect our lives tomorrow. That’s why financial impact is crucial for the sustainability issues of our time.
But what does “impact“ mean, anyhow? Impact occurs when an action (in this case an investment) leads to a real change (for example, a reduction in CO2 emissions), above and beyond what would have happened anyway.
An impact investment is an investment designed to have a positive effect on people and the planet, while generating a profit. This distinguishes impact investing from donations and conventional investments, that either yield no profit, or focus only on profit at all cost. It also distinguishes impact investing from the majority of “sustainable investments”, which have zero positive effect.
How does impact investing work?
Simply put, an investment must have a real impact in order to be considered an impact investment. According to the University of Zurich, active shareholders can make a difference by directly influencing the companies they’re invested in.
We at Yova offer our clients precisely this. As a Yova investor, you are an active shareholder in “your” portfolio companies, where you can make a positive social and environmental impact while growing your wealth.
Transparency is key here. We assess every company that makes it into your individual portfolio, analysing not only its figures and past performance, but also its future development. At the same time, we examine the products and services the companies offer and whether those have a positive impact (Handprint). We also look at how they operate and whether they consider CO2 emissions, equal opportunities, fair wages and human rights in their daily business (Footprint).
Last but not least, we guarantee that your investment is designed exactly within the level of risk you feel comfortable with. This is because you invest in companies listed on major stock markets, which makes your returns more predictable in the long-term.
How can I become an impact investor?
By investing five minutes of your time, you’ll receive your personal investment strategy, free of charge and without obligation. Tell us what values are and what topics your heart beats for. Biodiversity? Human rights? Education? We will then present you with matching companies that are committed to these issues and mix in high-performance selections to make your portfolio even more financially attractive. Most importantly, you are always in control. If one of the proposed companies clashes with your values, you can exclude it from your portfolio yourself.
You know your values, we know the science and the nitty-gritty of the financial world. Together, we can make a difference for the world and the future we want to live in.