Eco-friendly investing: how to build a green portfolio

Do you want to invest in green, sustainable initiatives? If so, you’ll need to be careful when building your portfolio. Here’s what you should do.

Read the documentation
If you’re offered a green, ethical or sustainable investment, it’s important to do your due diligence as these terms aren’t regulated. To find out if an investment really is what it says it is, you need to read the brochures and policies supplied by the issuer.

Get the right guidance
It’s best to consult a professional to help you make investment choices that are in line with your ecological principles. Fortunately, there are many financial management experts you can turn to for guidance in building an investment portfolio that aligns with your goals and values.

Remember, even a green portfolio should be diversified, and it’s important to make sure you invest broadly.

Good to know
Have you been told that responsible investments pay less than traditional investments? Well, that’s a myth. According to an analysis published by the International Monetary Fund, investing in an environmental, social, and governance (ESG) portfolio yields similar returns as investing in a non-ESG portfolio.