COP26: You too can make a difference through ‘greener’ investing

Published by Guy Hilton on 1 November 2021

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The UK will host the 26th UN Climate Change Conference of the Parties (COP26) at the Scottish Event Campus (SEC) in Glasgow from 31st October – 12th November 2021.

The climate talks will bring together heads of state, climate experts and campaigners to agree coordinated action to tackle climate change.

One of the main goals of COP26 is to ‘mobilise finance’ and developed countries must make good on their promise to mobilise at least $100bn in climate finance per year.

We saw another step on that run in the UK back in March’s budget, when Rishi Sunak announced the new ‘green’ savings bond to be offered to retail investors. This gave a clear indication on the direction that this government wants to have in regards to supporting green projects such as renewable energy and ‘clean’ transportation.

NS&I have now opened the bond which can be purchased on the NS&I website. Investors who are aged over the age of 16 are able to put between £100 – £100,000 into the bond and the initial savings rate is 0.65% for a three year fixed term.

There has been widespread condemnation of this interest rate as it pays less than other easy access accounts which you can have access to immediately as opposed to having your money tied in for 3 years with the Green Bond.

If investing your funds in ‘green’ projects is something that you are interested in but the 0.65% interest rate does not appeal to you, what else can you do?

Given the COP26 objectives and the opening of the Green Bonds, it is clear to see that tackling climate change is at the forefront of nations’ economies and has been for a number of years.

There are however other options to invest any funds you may have in this area other than the Green Bonds. The market for this area is ever growing with more opportunities to invest sustainably.

If wanting to tackle a particular cause such as climate change is important to you and you would like your funds invested in these areas, then it is important that you review any policies you have as soon as possible to see what the offering is as you may want to create a more specialised portfolio to reflect your views.

It is highly likely that your workplace pension, for example, will have funds which invest into ‘green’ areas so reviewing these is key to ensure that the way your funds are invested, reflect your wishes, or changing them to do so. This makes investing in a sustainable manner more accessible to most and can be a good introduction for those wishing to go further.

At Kreston Reeves Financial Planning, part of the Craven Street Wealth group, it is important that as advisers we know your preferences in order that a portfolio of investments can be created to meet your particular requirements using both external data and through discussions with fund managers.

Please contact us on +44 (0)1227 768231 or provide your details on our online enquiry form if you would like to discuss investing, or an existing investment portfolio.

The content of this article is for information only and does not constitute formal financial advice. This material is for general information only and does not constitute investment, tax, legal or other forms of advice.

You should not rely on this information to make, or refrain from making any decisions. Always obtain independent, professional advice for your own particular situation.

Kreston Reeves Financial Planning Limited, Independent Financial Advisers. Authorised and regulated by the Financial Conduct Authority.

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