Ethical and sustainable investments are better for investors and the planet.
Knowing how to contribute to a better, more sustainable world isn’t easy.
There’s only so much anyone of us can do: eating less meat (or cutting it out altogether), recycling, taking the train or bus, and not flying as much.
But at the same time, you need to start investing if you’ve got long-term goals and want your money to grow.
The good news is you can do both at the same time. You can invest sustainably, making a difference to the plant and growing your long-term wealth.
Compared to making lifestyle changes, sustainable investing is 27x times more impactful.
There are many “sustainable” investment products out there.
Unfortunately, recent research shows that 90% of so-called sustainable investment products in Germany practice investment greenwashing.
In other words, an investment company might say, “We’re sustainable, we only invest in green energy and ethical agriforestry”, while at the same time, putting some of your hard earned money into oil giants and weapons conglomerates.
So, how do you find the best ethical financial advisors for those who genuinely want to make sustainable and ethical investments?
In this article, we answer those questions and point you toward making smart, financially, and environmentally savvy investments.
Let’s dive in…
Why make ethical investments?
Businesses exist to make a profit.
And that wouldn’t be a problem, except that unsustainable economic growth is destroying the planet.
To take positive action to combat unsustainable and unethical business practices, we’ve gone for a purely sustainable and ethical approach to investing.
The benefits of this approach are:
With that in mind, it brings us back to the problem that 90% of so-called sustainable investment funds in Germany aren’t sustainable.
How do you find the best ethical and sustainable financial advice?
Let’s start with SageWealth…
SageWealth is the digital financial platform for ethical and sustainable, long-term investments.
We are here to help anyone who’s got extra savings do something positive with their money—instead of it just sitting in a bank account barely earning any interest.
Investing the right way can snowball your wealth and help you achieve your life goals—whether that’s retiring early, buying a home, or having a family.
SageWealth gives you the advice and tools you need to invest and save for the future with a digital-first platform, automatic deposits, personal service, and guaranteed security.
With SageWealth, you can invest your money wisely, save for your goals, and contribute to a better tomorrow.
Ready to snowball your wealth? Get a free financial plan from SageWealth: Book your meeting.
Let’s take a look at SageWealth’s sustainable investment accounts…
Sustainable ETFs: SageWealth Stability
ETFs are a great way to invest. SageWealth made them better and more sustainable than anything else on the market.
SageWealth Stability is our low-risk ETF product. Perfect for first-time investors.
It’s also ideal for those making long-term plans—buying a house, having a family, or retiring. If you know how much you’ll need by a certain date, then it’s better to go for a balanced investment like SageWealth Stability.
We ensure that your investment funds are never in one basket. We spread your investment across 10 ETFs, creating a more secure portfolio. Keeping your money safe and spreading it globally.
Our ETFs only invest in ethical businesses and bonds with a mission to create a low-carbon future, such as green energy and sustainable food production.
We’ve invested in the world’s most sustainable funds while excluding anything that harms the planet or people in the pursuit of profit. Our ETF portfolios take sustainability even further, focusing on the leaders and changemakers in sectors and industries that are making a more significant impact on creating a sustainable world.
Here’s a breakdown:
With 3,000+ ETFs on the market, we’ve saved you hundreds of hours of research so that you can start planning your financial future sooner—while making fewer mistakes!
Find out more about our investment portfolios and sustainability standards.
* As with any investment vehicle or fund: Past performance doesn’t predict future growth. Returns can and do fluctuate over time. Target returns and estimated profits are only reasonable estimates.
SageWealth Growth is our more adventurous ETF product. It’s perfect for investors who want to generate high returns and are comfortable with more volatility to achieve that.
Here’s a breakdown:
It comes with all the same benefits as SageWealth Stability while aiming to generate larger returns for risk-friendly investors.
* As with any investment vehicle or fund: Past performance doesn’t predict future growth. Returns can and do fluctuate over time. Target returns and estimated profits are only reasonable estimates.
Here are 5 benefits of trusting SageWealth to snowball your wealth while fighting global warming . . .
Unlike other funds, our sustainability standards are ‘simply’ stronger. See our Sustainability Criteria.
With guidance from Sustainable Market Strategies, leading experts on sustainable investments, we crafted ETF portfolios to meet the highest possible standards for sustainable and ethical investing.
SageWealth exclusively invests in the planet's most sustainable and ethical ETF funds (according to the EU’s new Sustainable Finance Disclosure Regulation).
Here’s how our team, advisors, and investment committee decides what to invest in:
SageWealth’s selected ETFs include real estate, infrastructure, bonds for stability, and stocks in companies of every size
We are trained financial advisors ourselves. But we’ve not done this alone.
Our team works with one of the world-class experts on sustainable investments, such as Sustainable Market Strategies. With their help, we’ve crafted the most sustainable, ethical, and risk-adjusted portfolios possible.
That way, you can rest assured your money will grow, is diversified, and is making a positive impact.
Hard-working founders, freelancers, and high-earners need to think about how to have a comfortable retirement.
Most pension newbies ask themselves: How much should I save and for how long to enjoy the lifestyle I want when I retire?
We can help you answer that question.
Find out how much you need to save to enjoy a comfortable retirement with SageWealth’s Free Pension Calculator: Invest sustainably with long-term wealth advisors.
Try out our Pension Calculator today.
When searching for ethical financial advice, no one wants to phone, fill in forms, or book a face-to-face meeting. It’s 2023; who’s got the time?!
But you want something more personal and reassuring than depositing money in an app and hoping for the best.
SageWealth provides straightforward English-speaking financial advice for anyone living and working in Germany and across Europe.
Get peace of mind and convenience with SageWealth. Your personal wealth advisors are only a video call or email away.
We’ve made it easy:
Our fees are under 1% per year, cheaper than traditional banks, brokers, and even robo-advisors.
Plus, there are no hidden fees! You always know what you’re going to pay.
Other benefits of investing with SageWealth include:
Get started today with a free financial plan from SageWealth: Book your meeting.
In one call, SageWealth’s financial advisors will give you actionable advice on:
🎯 Your financial goals (traveling, financial independence)
🌿 Sustainable investing with ETFs & more
👵 Retirement plan
“Future you” will thank you!
Now let’s look at how to find out whether a bank or other financial organisation actually makes ethical investments and other frequently asked questions.
Investment greenwashing is a clever tactic by the financial industry. It was originally created to reduce investment risks.
Climate change threatens businesses and business models through stricter government regulations or increased insurance cost payouts because of flooding, fires, and droughts.
At the same time, consumer trends are shaping the financial sector.
Consumers demand businesses—especially corporate giants and global brands— to actively do something about climate change. Far too many businesses are still failing at this; instead, they are greenwashing rather than taking positive, impactful, sustainable action.
So, in the financial sector, a combination of wanting to reduce risk while jumping on the eco-consumer bandwagon gave birth to the concept of “ethical and sustainable” investments.
However, in most cases, it’s “ethical and sustainable” in name only.
Greenwashing is everywhere in the investment industry.
As we’ve found, 90% of so-called “green” and “sustainable” investment funds continue to back the worse offenders, such as oil and gas, weapons, mining, and tobacco.
Every fund applies sustainability criteria differently. Making it easy for them to claim one thing while investing in BP, Shell, and hundreds of other unsustainable corporate giants.
The gold standard for ethical and sustainable investments in Europe is to work with a financial advisor/broker that exclusively invests in Article 8 and 9 funds (according to the EU’s new Sustainable Finance Disclosure Regulation).
SageWealth does that: See our Sustainability Criteria.
Understanding how the financial advisor is paid is the best way to understand their motives and whether there’s any reason for them to promote sustainable and ethical financial products.
An “advisory call” from a financial advisor is simply to sell you complicated unsustainable, and unethical investment products that aren’t right for you, normally full of hidden fees.
Whenever you speak to a financial advisor, you should ask:
And there we go, everything you need to know about making sustainable and ethical investments in Germany.
We hope you’ve found this article useful!
SageWealth’s team and our advisory committee of financial experts have done extensive research to ensure the ETFs we pick are sustainable and ethical.
With over 3,000 ETFs on the market and a confusing range of so-called sustainability criteria, how’s anyone know whether a fund is really making ethical investments?
As we’ve found, 90% claim they’re being environmentally and socially sustainable or simply greenwashing.
SageWealth is different. We are committed to only investing in funds that help the planet, our environment, and people. Unlike other funds, our sustainability standards are ‘simply’ stronger. See our Sustainability Criteria.
In practice, we exclusively invest in Article 8 and 9 funds (according to the EU’s new Sustainable Finance Disclosure Regulation).
Yes, absolutely, and for so many reasons!
“A huge scientific analysis of 2000 papers showed that returns from sustainable investing are higher 60% of the time, and 90% of the studies show no worse returns compared to traditional investing.”
As other research has found, “sustainable investing is 27x times more impactful than sustainable consumption.” Your investment decisions have a bigger impact than whether you recycle, use plastic straws, or go vegan.
At SageWealth, we hate investment greenwashing, so we only invest in Article 8 and 9 funds, the highest EU sustainability standards possible for ETFs.
As a regulated financial services institution, we don’t control your money. You can access or withdraw money anytime you want. Your funds are kept in individual securities accounts at Baader Bank for added security.
Our partner, Bank für Vermogen, monitors our legal processes. All parties are regulated by the BaFin (Germany’s financial supervisory authority).
Your investments are always secure. Even if SageWealth or Baader Bank went under, anything in your account is separate from either company. Banking regulations and EU law ensure that your assets can be automatically transferred to a new security account in any bank you choose.
In addition, any cash remaining in your account is subject to the EU deposit guarantee scheme (DGS) (up to €100,000). For more information, please visit edb-banken.de
Please remember, as with any investment vehicle or fund: Past performance doesn’t predict future growth. Target returns and estimated profits are only reasonable estimates.
Made in Germany with love ❤️
