Sustainability has become a hot topic worldwide, especially among the younger generation. But sustainability isn’t just about recycling or reducing plastic, it’s about making every aspect of life including our finances, environmentally friendly.
According to Mercy Gitau from ABC Bank diaspora banking, sustainable investing, also known as socially responsible investing (SRI) or impact investing, involves putting your money into companies and projects that positively impact the environment and society e.g. renewable energy or ethical labour practices.
For instance, imagine Mwangi, a 28-year-old Kenyan who is passionate about wildlife and environmental protection, wants to invest Ksh 100,000. To align with his values, Mwangi could invest in companies with low carbon footprints, like solar panel manufacturers or conservation organisations. Not only can these investments provide a solid return, but they also encourage businesses to stay committed to sustainable practices.
So, how can you get started with sustainable investing in Kenya? Mercy notes that just like any other investment, you need to:
1. Research: Look for companies that genuinely commit to sustainable practices whether through renewable energy, ethical labour, or waste reduction then select a company to invest in based on your investment goals. You can also consider investment firms that offer investment options focused on Environmental, Social, and Governance (ESG) factors, like ABC Capital.
2. Start Small: Many Kenyan banks (Including us – ABC Bank) and investment platforms allow you to start with as little as Ksh 1,000. Begin small, and grow your investment over time.
3. Think Long-Term: Sustainable investing often means taking a long-term view because it’s not just about high returns, it’s about contributing to a healthier planet.
4. Local Resources: Did you know you can buy green bonds at the Nairobi Securities Exchange (NSE)? Kenya’s first green bond, the Acorn Green Bond, was issued in 2019. You can also explore local groups like the Kenya Green Building Society (KGBS), which focuses on sustainability.
Sustainable investing is more than a trend, it’s about aligning your money with your values. As a Kenyan, you have the power to make a difference, both for your financial future and for the planet. So why not start today?