Clim8 promotes ‘sustainable investing without compromising on returns’, helping its user base fight the climate crisis whilst they build their investment portfolios. Their mission is to ‘have a positive impact on climate change by moving billions of pounds of investments into clean energy and truly green, sustainable companies.’ Their app is easy to use, and their message simple: growing your savings doesn’t have to mean compromising on what you believe in.

As governments across the world unite to build billion-dollar rainforest protection initiatives it is clear that the climate crisis cannot be ignored and investment in the sector is more needed than ever. With the public eye on the climate crisis, many investors are considering the benefits of investing in sustainable companies as consumers focus more on the sustainability of their purchases and lifestyles.

Sustainable investing

Sustainable investing uses environmental, social and corporate governance (ESG) criteria to select companies that can ‘generate long-term competitive financial returns and positive societal impact.’ This style of investing has become more common over time and Clim8 are in the perfect place to facilitate sustainable investment portfolios. They have a diverse team of experienced investment professionals and their ‘methodology is driven by deep research and data-centricity to achieve financial and environmental goals.’

A study by the Morgan Stanley Institute for Sustainable Investing ‘found that sustainable funds provided returns in line with comparable traditional funds while reducing downside risk.’ This finding has been supported by a number of other studies that found ‘investors do not have to pay more to align their investments with their values’. If the returns are equally good – or perhaps better – when investing in sustainable companies, then investment in this sector is extremely likely to continue on a strong upward trend.

Alongside financial institution Atmos that helps consumers put their savings towards green energy, Clim8 are making investing in causes you believe in easier than ever. Clim8 tailor your portfolio to your risk profile and the causes you value most, enabling users to control the types of companies they wish to invest in without needing to do all the research – that is all handled by Clim8’s team of experts who know the sustainable industries inside out. 

A thriving industry

London is ‘the fastest growing global hub for impact tech’, which makes London-based Clim8 perfectly placed to make big waves in the industry. The title of ‘impact tech’ is given to tech solutions that address at least one of the UN’s Sustainable Development Goals such as clean energy, sustainable communities, and climate action.

According to a report from London & Partners and Dealroom.co, ‘the VC investment into London’s purpose-driven tech companies has increased by almost 800% (7.8 times) since 2015, compared to 3.1 times in Europe as a whole.’ This trend indicates continued growth of the sector, and Clim8 is set to ride this wave upwards. Clim8’s bright future is visible to investors too: they raised $8 Million in a recent funding round with investors including early Oculus backers 7pc Ventures.

Clim8 only invests in ‘clean energy, clean technology, smart mobility, clean water, sustainable food and recycling [and their] portfolios are mapped to the UN Paris Climate Agreement.’ Users investing with Clim8 will be able to have a very real and tangible impact on the environmental and social issues that matter most to them, as well as seeing positive returns in an increasingly valuable sector.

Consumer habits

Investing in a sustainable future isn’t something only those with money to invest in shares can do; consumers also play a massive role in securing sustainability with their purchasing habits.

The tide is turning on the single-use wave with Canada set to ban ‘the majority of single-use plastics by the end of this year with Montreal aiming to have a zero-waste policy by 2030.’ They are not alone in this; many other countries are waging a war on single-use plastics, leading companies and consumers alike to come up with innovative alternatives to the plastic bags and bottles we’re used to. Some brands carry the carbon neutral label, a certification proving that are doing their part to offset their carbon emissions. This is simultaneously great for the planet and great for their public image.

Many consumers are also making sustainable changes themselves, whether that’s opting to carry canvas tote bags as opposed to purchasing 5p shopping bags or aiming to be entirely zero-waste. The zero-waste movement may seem extreme to some, but any effort to minimise waste – however big or small – is an investment in the planet’s future. Consumers, therefore, play a role in sustainable investment every time they choose a product based upon the environmental impact of the choice.

As the buzz around making sustainable consumer decisions grew, so did the liberal use of buzzwords like ‘eco-friendly’. Some companies have even been accused of greenwashing products and misleading consumers about quite how sustainable their products really are. The term ‘greenwashing’ is a play on the term whitewashing and refers to unsubstantiated or overstated claims about the sustainability or eco-friendly nature of a product – such as boasting ‘50% more recycled materials’ on a product that is now made of 3% recycled plastics as opposed to 2%.

Conclusion

Clim8 are making it easier than ever to invest in this incredibly valuable sector, proving that investing in a sustainable future is beneficial for the planet and investors. As consumer behaviours shift to more sustainable options, companies with robust sustainable goals and policies will see benefit massively – and sustainable investors will reap the rewards.

About the Author: Leo Hynett

Leo Hynett is a contributing Features Writer, with a particular interest in Culture, the Arts and LGBTQ+ Politics.