Investing through online platforms has grown tremendously over the past years. Typically the two types of online investment platforms that people look for fall in these two categories:
While those two types of investments have been rewarding investors with great returns, there is also a rising interest in sustainable investments, also called impact investing. I hadn’t thought of that angle, but I understand that people who are very ethically focused might not want to invest, say, in consumer loans. I take a more liberal approach myself, but even so, I think it’s a good exercise to do some research into sustainable investments.
Short answer: for retail investors in Europe, the two sustainable investment platforms worth starting with are Trine (solar loans in emerging markets, regulated in Sweden) and Lendahand (loans to small businesses in emerging markets, from €10). Both are lending platforms, so your capital is at risk if borrowers default, and neither return is guaranteed.
Ethically-minded investors are strongly motivated by a desire to make a positive impact in the world through their investments. Thus they seek out socially responsible projects where they can get good returns for their money, diversify beyond the typical stocks and bonds, and help others in the process.
Trine
This is a Swedish platform founded in 2016 that focuses on sustainable projects. It uses crowd investing to lend to solar energy companies in emerging markets, while also delivering a return to the investors.
Trine is regulated by Finansinspektionen, the Swedish financial regulator, and says investors have put more than €118 million through the platform. It publishes its returns for every loan year, including the weaker ones where defaults pulled the average down, which is the kind of transparency to look for on any lending platform.
Lendahand
Lendahand is a Dutch platform that has been lending to entrepreneurs in emerging markets since 2013, with more than €232 million invested so far. You can pick individual projects or use Auto-Invest, starting from €10, and the platform advertises interest of up to 9% a year, with repayments every six months.
Other platforms you should look at include:
- Ethex: a UK-based platform that allows individuals to invest in a range of ethical and sustainable companies and projects.
- Wiseed: a French platform that allows individuals to invest in a variety of renewable energy and sustainable projects.
- BlueOrchard: a Swiss impact investment manager that specializes in microfinance and renewable energy.
Do you know any other sustainable investment platforms that I should consider? Let me know in the comments section.
Related
Hi Jean, if you were open to geographically enlargen the list, I’d like you to consider Ziggma (https://ziggma.com/impact-investing).
I’m one of the founders. Our objective is twofold.
1. Empower investors to align their investments with positive real-world impact at best and their values at a minimum. Powered by open banking, investors can link their investment accounts to the platform and obtain a comprehensive impact assessment of their investments.
2. Render corporate stewardship transparent by providing a comprehensive set of sustainability metrics on over 3,000 US firms.
To our knowledge, Ziggma is the only platform that provides a stock and ETF screen that lets investors screen by both financial parameters and real-world impact, such as net zero goal or employee satisfaction. The securities may be US-focused, the values are universal.
Thanks for the details, Ulrich. This list covers platforms where Europeans invest directly, so a screening tool for US stocks doesn’t fit it.
Another platform is Switchr, where you can invest in solar panels: https://switchr.global
Hello Jean. I am an investor in lending platforms and to invest in environmental projects I recommend GoParity. GoParity is a Portuguese platform with some time on the market, several projects financed and working perfectly. Comparing with Trine, I consider GoParity safer because they invest 70% in Portuguese projects while Trine invests in African and Asian countries. For me, these countries have more political and currency risks. I’m from Portugal so I know GoParity well but I also have a small position at Trine. I also leave the GoParity link for anyone interested and my code if you want to join the platform and give me a small bonus 🙂
https://goparity.com/pt-pt
https://app.goparity.com/pt-pt/signup/referral/PJFSC17682