Sustainable investing with Selma 🌿

Topic voted by our Selma Contributors 💙

Sustainable investments – what do they entail? Find out how Selma defines "sustainable" investing and make sure that your money does good, while it’s working for you.
 

Since the start of this century, sustainable investing has been around, but existed merely as a niche market for investors. Recently, the topic has become more important.

Let’s look at the reasons for the rise of sustainable investing:

  1. Private investors want to know where their money goes.

    Who likes to admit that the money they invested facilitated companies that were tangled up in corruption scandals? And do you still feel good about your return if you find out that the money you invested in some funds ended up supporting pollution and trimming the rainforest? Furthermore, don’t sustainable companies actually perform better on the long-term? 🤯

  2. The finance & investment industry needs to become more transparent.

    Finding investments which get you return, fit the risk level you can and want to take and which you can invest in privately, is already a challenging task. Imagine you have to additionally filter for companies in your investment products which adhere to sustainable criteria. Almost impossible for a newcomer in the field.

    Thankfully though, the digitization of the industry has been pushing the “user experience” of investing. Offers need to be understandable, transparent and targeted towards consumers.

  3. Sustainability has become an integral part of everyday life.

    The Zeitgeist is changing – standards and criteria have been implemented, many products differentiate themselves through their sustainable content. Even people who have not had the slightest interest in investing are slowly starting to glance at opportunities due to the new sustainable options.

    Financial providers have a chance to motivate newcomers with little finance know-how or interest in stock markets to start planning their financial future. 🤓 The option to let your money support sustainable companies when invested comes with a whole new value proposition.

 

If you spend your money – when online shopping or in a store – the choice you make is very tangible. The sunscreen without micro plastics, the regional, organic beef or baby clothes made out of ecological material: Everyday we make these conscious decisions.

Is our society aware that also “investing” can be part of your lifestyle? Opening an investment account is possible within only a few minutes, but why not invest in a way that fits our values? 🌿

 
 

What does sustainable investing mean?

The Forum for Sustainable and Responsible Investment uses this explanation:

 

Sustainable, responsible and impact investing (SRI) is an investment discipline that considers environmental, social and corporate governance (ESG) criteria to generate long-term competitive financial returns and positive societal impact.

 

This sounds relatively straight-forward, but actually starting to invest “sustainably” with tools, services and offers at hand, is still a challenge. Often it depends on the goal of the investor. 🧐

  • Do you only want to invest in renewable energy sources?

  • Do you want to make sure that any company in your portfolio prohibits child work?

  • Should the money mainly go into gender-equality supporting companies?

One thing is for sure: Nowadays it’s part of an investor’s etiquette to opt for sustainable options if possible. 🎩 And how this can be implemented depends on the provider – let’s look at how Selma solves this issue for her clients.

 

What is Selma’s sustainable strategy?

Selma’s strategy is guided by wishes and requests of Selma’s clients! Before even starting to look for “sustainable” investment products, our team started researching, asked for feedback and started to figure out which themes fit with our company vision – and our clients’ values.

Here are some questions that Selma’s clients and contributors asked and which we tried to take into account when creating Selma’s sustainable strategy.

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After long debates and revisiting research, we decided to choose ESG sustainability criteria 🥦 as a guidance for our product choices. That means that with Selma…

 
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You leave out

companies that deal with

Weapons & firearms

Tobacco & alcohol

Gambling & adult entertainment

Genetically modified food (GMOs)

Nuclear power or thermal coal

 

 
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Avoid

companies that face scandals with

Environmental issues

Customer protection

Labour

Human rights

Bribery & fraud

 

 
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And invest more

in companies that

Reduce their carbon footprint

Keep water usage low

Source their raw material sustainably

Handle their waste sustainably

Support CleanTech

Use renewable energy

Work in green buildings

Treat their employees well

Support diversity

Pay fair salaries

Don’t throw around ridiculous bonuses

 

Do I compromise on return when investing sustainably?

 
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No, absolutely not 😊 On the long term sustainable companies prove to perform similarly well or even better.

Companies that act according to ESG criteria often handle resources in a more sustainable way, risk less political scandals and tend to profit from new regulations. 🌎

Patrik Schär, CFA

CEO & Founder, Financial advisor

 

It can come to differences in your products’ costs, as fund management (checks, updates, specific choices) gets a bit more expensive.

With Selma’s chosen array of sustainable products, the difference evolves around 0,08% compared to products chosen without ESG criteria.

 

What does sustainable investing cost with Selma?

Fees contain two parts – the service fee of the provider and the products’ own costs.

 
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Selma’s service fee: 0,72% per year

Includes

  • All transaction & bank costs

  • Stamp duty

  • 24/7 monitoring of the markets and your investments

  • Adjusting investments to changes in your financial life

  • Automatically detecting under- and overpriced markets

  • Swiss tax statement

  • Selma crew support 👋 👋

Investment products: 0,3 % per year

Selma will keep on looking for the most cost-efficient ways to invest in sustainable products and more optimal ways to trade.

 

How do I invest sustainably with Selma?

Sign up and chat with Selma for 5 minutes. Once Selma got to know your financial situation you will get an individual investment plan. Once you got the plan, you can switch the strategy to sustainability.

 

You already got a virtual account 🤓

Sign in to your account and find "Sustainability" in the menu to switch.
 

Do you already invest your money with Selma? You won’t find the switch in the app, but you can reach out to us and start the transition – you can switch to a sustainable strategy for free. 🍃