What’s a Climate Change Fund ISA?

POSTED ON Wednesday, 01 April, 2020

For those who want to invest their money, but want to ensure they align their ISA accounts with their personal convictions about the planet: fear not! You can still make good returns from your investments while ensuring your money isn’t invested in funds with a negative impact on the planet.

Investing with an ISA is a smart way to make your money work.

You can invest up to £20,000 per tax year in a tax-free wrapper which will keep your returns safe from the tax man. It’s an effective and savvy way to gain returns.

With more and more people realising the importance of sustainability issues with the advent of climate change, the need has arisen for investors to have the option of choosing to put their money where their mouth is when it comes to their investments.

You want to save the trees – but you also want to save your money.

This is where a Climate Change Fund ISA can be very useful.

What’s a Climate Change Fund ISA? 

A Climate Change Fund ISA does what it says on the tin – it’s a fund ISA which will allow you to rest assured your money will either be invested in planet-friendly endeavors, and notably avoiding any funds which are considered to be harmful to the planet. 

Climate change investment ISAs will also invest in companies that are deemed to be socially responsible, in terms of environmental impact. Funds that are aligned this way will generally invest in companies that are meeting positive carbon and environment al criteria.

For example, they might avoid any funds which have investments in fossil fuels, and may look to invest in companies which have low carbon emissions. 

Some providers many give you ‘sustainability analysis’ with your account, so you’ll have a breakdown provided of how your money is working on a global scale. 

What are the benefits? 

The benefits of this kind of ISA include…

  1. Aligning your investments to your climate change convictions
  2. Benefiting from the tax-free returns of an ISA account
  3. Diversification of investments 
  4. Most providers will filter the assets you can invest in depending on your appetite for risk
  5. Benefiting from putting money aside each month and gaining returns

Where Can I Get One? 

You can get a Climate Change Fund ISA from a variety of providers, including (but not limited to): 

  1. Virgin Money Climate Change Fund
  2. Legal and General Future World Ethical ISA 
  3. Legal and General Future World Climate Change Equity Factors Index Fund ISA
  4. Abundance Investments

Read more about Climate Change ISAs