Updated in September 2025
Maybe your friends don’t do it, but you should. Here are the Top 4 Reasons for sustainable investing your hard earned €, £, $ or whatever it is that you buy your organic craft beer with.
1 – Money makes money, even in small amounts.
My mum used to say “Money doesn’t youngle!” which means… uhm… I guess that money doesn’t make young moneys? But while my mum was right about many things (I know that now), she was wrong about this one: in the way our economic system works, money DOES youngle and thus multiplies – if you let it! When you invest, companies use your capital to buy assets like machines. These machines create value over time, which in turn generates profits that can be returned to you as interest or dividends. In other words: investing lets your savings grow instead of sitting idle.
2 – Investing helps you reach your financial goals.
Whether you’re saving for a big purchase like an electric car, building your retirement fund (In that case: chill! I’m sure it’s still a long way off!) or just preparing for life’s surprises: investing accelerates your path. Over the long term, compounding growth makes a huge difference compared to leaving money untouched in a savings account.
3 – Avoiding “lazy money” or opportunity cost.
Keeping money in a savings account might feel safe, but nowadays it’s almost like hiding it under your mattress. This is due to historically low interest rates. Imagine you leave €1,000 in your account earning close to 0%. An investment could have given you 5% – that’s €50 every year you’re missing out on.
That’s the opportunity cost of not investing. So even if you don’t know what you will use it for yet, investing what you have now will likely be worth the extra risk compared to the savings account. And it’s not just about lost returns: lazy money also means you’re missing the chance to create positive impact with your capital. Which brings me to the reason for this blog.
4 – Investing for Change: use your capital as a force for the sustainability transition!
Money drives the wheels of our economy. And where it lands determines if and how the economy changes – for good or bad. Think about why we still emit so much CO₂ despite decades of climate science: because our socienty still invests too much in fossil fuels and polluting industries. Every Euro invested in a new coal power plant or petrol car creates a lock-in effect for years or decades to come. After all, you don’t want to scrap the power plant or car early if your money is in it.
And now imagine the opposite: all this capital flowing into renewables and energy efficient tech: creating new jobs, financial returns and lobbying power, to the point it becomes a political force in itself. This has already happened – the last decade saw some of the fastest growth in cleantech ever. Blocking green projects already comes at a very real economic cost. But we’re not yet where we need to be and that’s the main reason for sustainable investing.
The finances to make this happen come from companies, pension funds and even countries. But it’s also the savings of billions of individuals. According to some estimates, individuals hold about half of global assets under management, a figure which experts expect to rise to 60% by 2030. That’s a big lever you’re holding.
So whether you have a little money or a lot, it’s your responsibility to invest it wisely. Use it to shape a better future! Plus, it feels good knowing your money works for something meaningful. 😊
How does this matter to YOU?
The four reasons above are the starting point for your own impact investing journey. If that still feels daunting, head on to my Step-by-Step Beginner’s guide!