Many of us want to make greener choices with our finances, but it can be overwhelming (not to mention time consuming) trying to find providers that are genuinely – and consistently – making a positive impact.
Excitingly, there is a wave of new apps that can help to put the power in your hands – so you can make quick and well-informed choices about where to save and invest your money for the best.
Here’s our top 3.
Edit January 2023: GreenGrowth has announced it is closing its app to retail customers. It is now looking at using the technology it has built for the app to help financial advisors and wealth managers create more sustainable portfolios, and report their impact more effectively to their clients.
GreenGrowth
GreenGrowth tailors your investments to your individual carbon footprint, so you can put your money to work in a climate-positive way that’s personal to you.
The platform measures your carbon footprint with a simple survey about your lifestyle and consumption. It then matches you with funds that help to tackle the areas you’re making the most negative impact on. All of the funds on the app address one or more of five sustainable investment themes: clean energy, green transport, the circular economy, sustainable agriculture and clean water. You also have the option to self-select which environmental themes you feel most strongly about and invest in those.
Your investments can be held in a tax-free ISA (Individual Savings Account), or GIA (General Investment Account).
The Good stuff
We like that GreenGrowth makes sustainable investing personal and transparent, too. Information on how it selects funds to match its climate-friendly themes is available on its website.
What’s the cost?
There is a 0.6 per cent management fee per year for investments you make and hold within the app. GreenGrowth rewards loyal investors by dropping this to 0.4 per cent in stages over five years. You will also pay a fee (from 0.4 to 0.9 per cent, depending on the funds you choose) to the fund managers.
Etcho
Etcho (which means ‘tomorrow’ in the Ewe language of Ghana) aims to be your personal companion to conscious investing, enabling you to see the true impact of your investments.
The free app measures the impact of publicly-listed companies on the world against the 17 United Nations Sustainable Development Goals (SDGs). It gives them a unique Etcho score, so you can see clearly if investing in them matches your sustainability goals.
Etcho looks at what companies earn revenues from and maps that to each SDG both positively and negatively. They also look at news on companies’ behaviour, constantly adjusting scores accordingly. So if for example, a firm you invest in buys some green energy farms, it will gain positive points. Likewise if there is unethical conduct, such as a board member being disciplined for sexual misconduct, it will have points deducted.
This means you can make informed decisions about where you invest your money.
As well as checking ethical credentials, Etcho also displays the financial performance and investment processes of funds to check that fund managers are doing what they say they are. Remember, however, that this does not constitute financial advice.
The Good stuff
We like that Etcho makes investing sustainably relatable to everyday investors. Its scoring system makes aligning your investments to your sustainability goals easy and quick. Plus – it’s free!
What’s the cost?
Etcho is currently a completely free service.
MotherTree
MotherTree calculates your money’s carbon footprint and helps you switch to a greener way to save. It shows you the carbon impact your current savings and investments are making, and connects you with trusted, FSCS protected green providers.
You start by putting the details of your current provider/s and the approximate balance of your account into the MotherTree calculator. The app uses this to calculate your carbon footprint and give you a personal view of the impact your money is making on the world.
It then gives you options for FSCS-protected providers to help you quickly understand your options to make your money greener. To be recommended on MotherTree, providers must pass a strict vetting process, including emissions lower than 0.25 tonnes of CO2 emissions per £1,000 invested and zero investment in fossil fuels.
The Good stuff
We like that MotherTree quickly shows you the impact your money is making on the world, and goes even further by giving you greener options – all for free.
What’s the cost?
MotherTree is free to use. When you take out an account through the app, your new provider pays MotherTree a small amount.
