If you want to protect the climate with your money, you can do more than simply invest in an ESG fund. A first ETF now promises zero carbon dioxide emissions.
AInvestors who want to protect the climate with their money have long since found a huge range of financial products that promise just that. Especially in the market of passive index funds (ETF), which simply replicate a securities index, new offers are added every day, apparently. After the already very popular ESG variants, which usually kick the biggest polluters out of well-known indices and prefer particularly sustainable companies, more and more funds have recently come onto the market under the catchphrase Paris-aligned. They weight the companies whose businesses benefit from the Paris Agreement and the transition to a lower-carbon global economy.
Sustainability has become the number one selling point in the fund industry. This is also because the investment companies can now point out that the sustainably managed companies are not only good for the environment, but also promise better returns due to large government climate investment programs and restrictive laws against air pollution around the world. That makes sustainable investments interesting not only for avowed environmentalists, but also for all investors. According to the French fund company Amundi, more than half of all ETF investments in the past year went into sustainable products.