3 ways to create a more sustainable investment portfolio

Dec 1 2020, 8:00 pm

It’s no secret that the choices we make every day — from the transportation we use to the food we eat — impact our planet. As we continue to grapple with the realities of climate change, living sustainably and minimizing our carbon footprint has never been more crucial.

This leads us to a question we’ve been pondering lately: do our everyday investments have the capacity to shape the world for the better? In short, the answer is yes. With many big investment and pension funds shifting to greener options, it’s a meaningful trend that’s funding a more sustainable future — and one that can also offer valuable returns.

That said, it can be challenging to know where to start and how to determine whether your investments are sustainable. That’s why we spoke with the passionate innovator Claes Fredriksson, CEO and Founder of Liquid Wind. Liquid Wind is a Scandinavian cleantech company working to accelerate the transition to carbon-neutral transportation, and together we came up with a few key tips for how to use investments to enable a more sustainable future.

Support the future you want to see

There’s no shortage of sustainable companies out there that are in need of support. While many of the technologies needed to mitigate the climate crisis exist, companies with beneficial solutions are often in need of support and funding in order to become established and have an impact.

Investing in those solutions is the best way we can affect systemic change and tackle large issues, like plastic pollution and carbon emissions. There are plenty of financial tools, like crowdfunding platforms, that are making these kinds of investments more accessible (including those with private companies). This enables everyone to help fund the kind of future they want to see.

Invest in your values

Consider your values and convictions when deciding where to invest your money. By reflecting on which causes are most important to you and researching which companies are creating viable solutions, you’ll feel empowered to take action. In a way, it’s like voting with your dollars by investing in companies that align with your values.

One thing to be wary of when doing you’re doing research is deceptive tactics, like natural-looking advertisements, which are referred to as “green-washing.” This can falsely convey the notion that a company has sustainable practices. So, be sure to take a close look at a company’s mission and vision and consider how their practices are sustainable and ethical.

Collaborate to accelerate

Naturally, solving the climate crisis isn’t something you can take on by yourself. It’s an undertaking that requires collaboration across companies, borders, governments and everyday investors. 

“None of us can accomplish these big goals by ourselves. We’re in this together, whether we like it or not, and with a joint and very focused effort we can drive real change,” says Fredriksson.

If you have a financial advisor, you can consult them about how to improve the sustainability profile of your investments. Then, be sure to spread the word to your friends and family who might rally behind many of the same causes, but may not have considered the impact of their investments. Even if you don’t have major dollars to contribute, investing alongside others will help us all move towards a more sustainable future.

For those looking to build a sustainable portfolio, Liquid Wind is a great starting point.
The company is working to significantly reduce carbon emissions worldwide. How? By turning carbon emissions into liquid carbon-neutral fuel. This can replace fossil fuels to enable carbon-neutral transportation.

This technology captures carbon dioxide emissions and combines them with hydrogen (made from renewable electricity and water) to create a carbon-neutral fuel called eMethanol. Canada actually has the ideal conditions for producing this cost-effective fuel, which means there’s enormous potential for carbon reduction.

To accelerate access to renewable fuel and help mitigate climate change, you can invest in Liquid Wind by visiting frontfundr.com/liquidwind.

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