Sustainable financial products: what to consider

Veröffentlicht:

Aktualisiert:

Von:

in nachhaltige Finanzprodukte Nachhaltige Finanzprodukte sind finanzielle Instrumente, die auf Umwelt-, Sozial- und Governance-Kriterien (ESG) ausgerichtet sind. Damit sind sie für Anleger interessant, die neben finanziellen Renditeerwartungen auch auf nachhaltige Ausrichtung von Unternehmen und Staaten setzen. Diese Produkte können mit den grundlegenden Zielen der nachhaltigen Entwicklung im Einklang stehen, wie sie in den Zielen für nachhaltige Entwicklung (SDGs) der Vereinten Nationen beschrieben sind. Im Rahmen der erweiterten Maßnahmen zur Förderung nachhaltiger Finanzierung hat die Europäische Union den Rahmen für die Förderung von Investitionen in nachhaltige Aktivitäten – die sogenannte EU-Taxonomie – eingeführt. Allerdings gibt es beim Investieren in nachhaltige Finanzprodukte …
Sustainable financial products: what to consider (Symbolbild/natur.wiki)

in sustainable financial products

Sustainable financial products are financial instruments based on environmental, social and governance criteria (ESG). This makes them interesting for investors who, in addition to financial return expectations, also rely on the sustainable orientation of companies and states. These products can be in line with the basic goals of sustainable development, as described in the goals for sustainable development (SDGS) of the United Nations.

As part of the extended measures to promote sustainable financing, the European Union has introduced the framework for promoting investments in sustainable activities-the so-called EU taxonomy. However, when investing in sustainable financial products, there are some important aspects to consider that we will discuss in this article.

What are sustainable financial products?

Sustainable financial products are investments that invest in companies or projects that have a positive Impact on the environment and/or society. Such products can take into account different ESG criteria, including the management of environmental risks, fair business practices, ethics, corruption prevention, employee rights, diversity and good corporate management.

types of sustainable financial products

  1. Sustainable equity funds invest in companies that correspond to the ESG criteria. These can be both individual stocks and ETFs that reproduce an index that aims at sustainable companies.
  2. Sustainable bonds - these "green" or "social" bonds finance projects with positive environmental or social effects.
  3. microfinance products are aimed at entrepreneurs in developing countries and underfunded regions to promote economic growth and financial inclusion.
  4. impact investments are investments that explicitly target the generation of measurable, positive social and ecological effects.

    5. Why are sustainable financial products important?

    Sustainable financial products can help support a sustainable economy and to promote the transitions to a green and social economy. Investments in sustainable products can invest the risk of rushing in companies that have a negative impact on our society or our planets, minimizing and at the same time achieving attractive returns.

    The financial industry plays a crucial role by covering the capital requirement for a sustainable economy. Sustainable financial products enable investors to consciously invest in the future and at the same time generate financial returns.

    What should be considered in the case of sustainable financial products

    A clear understanding of the ESG criteria

    An important point in the investment in sustainable financial products is a clear understanding of the ESG criteria based on the investment decision. It is important to understand how these criteria are embedded in the investment process and how to influence the investment strategy.

    Greenwashing

    A growing problem in the world of sustainable finances is the so -called "greenwashing". This describes the practice of presenting products or services more environmentally friendly than they actually are. Greenwashing can occur in sustainable financial products if financial service providers characterize products as sustainable that only have minimal or no actual positive effects on the environment or society.

    product and provider selection

    There is a growing variety of sustainable financial products on the market. Therefore, it is important not only to evaluate the products themselves, but also the providers. A serious provider should be able to clearly communicate and prove the sustainability criteria that he uses.

    performance and risks

    It is a widespread myth that inevitably means a lower return. In fact, various studies show that companies that pay attention to sustainable business practices can achieve better financial results in the long term. Nevertheless, as with any investment decision, it is important to carefully weigh up risks.

    FAZIT

    Sustainable financial products offer a number of ways to achieve financial returns and to have a positive social and ecological influence. Nevertheless, they require a careful selection and assessment to fully exploit their advantages. A careful understanding of ESG criteria, greenwashing, the selection of products and providers as well as assessment of performance and risks are essential.