Investing with the environment in mind

Most of us have to invest at some point, often to prepare for retirement. These choices affect the environment, so it makes sense to favour green investments.

Putting your money into green investments helps the economy become more sustainable.

Real estate, shares, mutual funds or new businesses: wherever you invest, your money can do some good. Investor demand has led to a wide range of green and ethical funds. They aim to back companies that respect the environment and to avoid those that cause serious damage. Many of them also perform very well, so investing responsibly does not have to mean lower returns.

Before you invest, talk to a financial advisor you trust, as you would for any other investment. Look at the track record of each green fund and check how it has done in both rising and falling markets.

Experienced investors may prefer to choose individual shares themselves, which gives full control over where their money goes. Green sectors such as renewable energy offer many opportunities.