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Sustainability – a term that is on everyone’s lips. In fact, it is often simply said without much background knowledge. I think it’s somehow trendy to “be sustainable” and yet hardly anyone does it consistently. But that could also be because many people know the term but don’t look into it in depth. I was also familiar with “sustainability” as a term and knew that it is often associated with fair trade products, energy transition, nutrition and much more. I recently attended a lecture on the subject of “Fair Trade” in Cologne and there I learned things that were completely unfamiliar to me before. But that’s always how it is, when you delve deeper into the matter, we are sometimes shocked at the abysses that exist. It starts with child labor and ends with arms trafficking. And as soon as we invest in companies, for example through funds, we can never be completely sure who we are really supporting. Unless the funds are sustainable? But how is that supposed to work? I looked into the topic and examined the background of sustainable funds.
But first a tip:
Take a close look at monthly expenses
The first step to more savings is to take a clear look at your own finances. Many people don’t know their exact expenses. They pay for subscriptions that they rarely use or spontaneously buy things that are unnecessary. A detailed budget will help you save money and regain control.
Start by writing down all of your expenses for a month. Divide these into categories: rent, groceries, transportation, leisure and miscellaneous. You will quickly see where most of the money is lost. It’s often the small, regular expenses that add up to a considerable sum.
Digital expenses – for example for streaming services, apps or platforms related to online sports betting in Switzerland – are often consciously noticed for the first time in such overviews and can be specifically checked or reduced.
In order to better understand the background of sustainable funds, I would like to explain to you roughly what sustainability actually means. Sustainability is basically based on three pillars. The first pillar is ecology. It is based on not overexploiting nature and the environment. Natural resources should only be used to the extent that they can be regenerated. The second pillar is the economy/economy. Accordingly, society should not live beyond its economic means, as this would lead to losses for future generations – and they must be protected. The third pillar is the social aspect. A society should be so social that tensions are kept within limits and conflicts do not escalate.
How can sustainability be transferred to the fund?
Due to the financial crisis, many investors are unsure what they should invest in and how safe this investment is. I have often asked myself the question: “What will actually become of my money and where will it be invested?” Can’t you do good while saving? This is possible, because sustainability can in principle be applied to all areas of life, including of course the topic of “saving” and “investment”.
How do I even find reliable sustainable funds?
As part of this, VisualVest offers portfolios of sustainable funds that offer the opportunity to save sustainably and effectively at the same time. With the so-called GreenFolios from VisualVest, active returns meet sustainability. When planning an investment, these investments are usually evaluated exclusively based on financial criteria such as profitability, liquidity and risk. This is not the case with sustainable savings options, because in addition to these criteria, ethical, social and ecological aspects are also taken into account. These aspects are summarized in the ESG criteria.
- Environmental: Natural assets are protected and used sustainably
- Social: Peace, human rights and good working conditions are guaranteed and protected
- Governance: Securing corporate responsibility for society and corruption-free contract awarding
In practice, VisualVest offers an investment strategy according to which companies in an industry are evaluated and selected according to ESG criteria. Each criterion is evaluated equally in order to have the broadest possible impact on the environment and people.
Since the range of funds on the market is large and not particularly transparent, it makes sense to use GreenFolios. These portfolios consist of up to eight globally diversified, sustainable investment funds in the asset classes stocks and bonds.
It is ensured at all times that the GreenFolios meet strict sustainable and financial quality criteria. Investments will not be made in states or companies that promote the following areas:
- Tobacco products
- pornography
- Nuclear energy
- Weapons, armaments
- Anti-personnel mines, weapons of mass destruction, cluster bombs
- Labor rights violations, human rights violations and exploitative child labor in companies
VisualVest: Security through FNG seal
The selection of funds is also based on the seal of the Sustainable Investment Forum (FNG). This is a non-profit organization that evaluates sustainability taking ESG criteria and investment opportunities into account. The FNG seal was developed by civil society actors and financial experts over a three-year exchange. It is important to constantly improve and adapt the quality.
This means that risks when investing can also be reduced, as companies and states that do not operate sustainably are excluded in advance. (Current examples from the automotive industry could be cited here). Falling stock prices due to accidents on oil platforms and much more therefore have no chance. Investing in funds is particularly characterized by the fact that investors have a stake in the real economy. When investing, actual developments of companies and states play an important role and not pure speculation.
I am sure that the topic of “sustainability” will become more and more important in the following years. That’s why I think the VisualVest concept is important and good, because it simply gives you the opportunity to have a better overview of your systems and to support good things.
Risk warning:
More information is also available here:
Have you ever heard of this topic and thought about sustainable investments? How do you feel about sustainability in general?
