In the future, investors will have a say in how ecologically their fund managers should invest. A smart idea – even if financial institutions are already groaning.
When an investor goes to the bank in the future and wants to invest money, the first thing they have to do is chat about themselves and the world. For example, he is asked by his financial advisor whether he prefers to buy organic food and use green electricity. Or whether he’s worried about the summer drought or the rise in sea levels. Or whether he has children or grandchildren who are afraid of the consequences of climate change and who therefore go to demonstrations on Fridays. After such a preliminary skirmish about the investor’s environmental awareness, as provided, for example, in the guidelines of the Sustainable Investment Forum and other experts, things really get down to business: the investor is asked whether he is only aiming for financial returns or also values concrete social and ecological aspects. Ideally, the investor then reveals his good conscience and invests his money green or in another special way sustainably.
This form of advice, whether in the branch or online, was not invented by the financial sector, but by the EU Commission. It changed the European financial market guideline MiFID II so that in future every investor should be asked about their preferences in terms of sustainability. This dialogue about how ecological and social the portfolio should be will be a must in a year or more. The revised Financial Market Directive is only part of the EU’s intention to channel even more money into sustainable projects in the future and to combat climate change with private funds. To this end, banks and fund companies should be motivated as well as private investors.