Create a better world by investing
Everybody knows the quote „money rules the world“. With your investments you can do exactly that. In the financial industry such a behaviour has many names: impact investing, sustainable investing, ESG-investing (Ethical, Social,Governmental). Complicated names but it is an easy concept behind: You candefine which companies gets your money.
Take Tesla as an example. At the beginning no bank trusted Tesla and gave them credits to build a new electric car. Too risky was the answer of all banks. But Tesla got the money from individual investors who believed in their vision and bought shares of Tesla. The investors who bought shares in the initial public offering enabled Tesla to build their first model and start their success. And by the way, an investor who bought Tesla shares for USD 10’000 in June 2010 was well rewarded. By mid-August 2020 the investor would be a millionaire. The share rose from USD 17.- to 1835.-.
This is a good example how you can positively influence the world with your investments and at the same time have a decent return. Of course Tesla is an extreme example but in smaller scale, you find many of such opportunities in the market.
Companies focus on new battery concepts, online shopping, more energy efficient solutions, home office solutions, electrical power solutions, oil replacement strategies, water desalination, smarter food production,… Many of those strategies you can summarize under the name disruption. New business models that makes our world better.
It is not only that such companies itself are a huge investment opportunity, they also change the whole market they operate, in a significant way. Amazon did not just build one the most successful online shopping companies, more or less all companies who want to be successful today need to have an online shop. The success of Tesla also inspired old traditional car makers like Porsche, BMW or Daimer to launch electric cars.
Not convinced yet? So far we just discussed the way how companies can create revenues from positive change. Let’s focus for a moment on the cost side.
In the last years unethical behaviour of companies got punished in various ways. Just for Europe the list of companies who behave badly is getting longer and longer:
And this is just in the European Union. In the US the fines are significant higher. So, companies who behave in ethical way have a significant advantage and better return for you as an investor.
With the CO2-emission certificates the pollution of the nature is not free of charge any more. Companies who don’t react now and change their production methods will suffer significant higher costs in the future and can even go bankrupt.
Often the way you can influence the world by investing is totally underestimated. A recent study by Bank Nordea has shown that each of us has a 27 times greater influence on a more ecological development if we invest our retirement provision according to ecological criteria than if we do without regular flying, driving or eating meat. You can find the study here:
In marmot.finance we address this issues with selecting only strategies of companies signed the UN PRI principles. We combine strategies with a clear ESG-approach with thematic strategies like Disruption, Smart Food or Clean technology.