Green Investment Funds

Investment funds specialised to support sustainable companies

“Green investments" are traditional investment vehicles (such as companies, exchange-traded funds and mutual funds) in which the underlying business(es) are somehow involved in operations aimed at improving the environment in a sustainable manner.

These investments can be made by large scale green companies as well as start-ups developing green innovations or green products, like solar panels, wind-power electric generators, etc.

 

Green investing can also be achieved through investment funds or exchange-traded funds (ETFs) or mutual funds. If this investment vehicle only invests in companies aiming at promoting and developing environment investment and sustainability, it is considered as an Alternative Investment Fund and more specifically a Green Investment Fund.

Some of the sectors more concerned by these types of investment include renewable energy, and buildings sector.

Moreover, classics investors, like insurers or sovereign funds are more and more considering to transfer means and investments into green investments.

 

Thus, globally, the amount of green issuance will be more than $100 billion in 2016. More and more investors are coming.

 

Luxembourg and sustainability

In Luxembourg, a new « environment Label » has also been created. It can be delivered by Luxflag, an Luxembourg organisation which support sustainable finance. The Label is granted to investment funds that apply vigourous environmental screening to the companies whose securities they invest in.

The Luxembourg Stock exchange, with its 114 “green bonds” issued in 2007 (representing a total amount of $45 billions), has been taken a leadership role in the green bonds market. Pursuing its effort in green investment, it has decided to launch, as from mid-september 2016, a stock exchange completely dedicated to investments aiming at fighting against global warning. This new platform will automatically welcome the 25 issuers of such bonds, who will be compliant with its strict eligibility criteria (100% of the funds raised has to be dedicated to green investments) but is also for other issuers.

 

Investment Vehicle available for Green Investments:

 


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Creatrust is a member of the Ordre des Experts Comptables (Luxembourg) and an independent member of TGS Global Network Limited, an international network of professional business advisors.

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