As interest in sustainable investing continues to grow apace, Clim8 Invest (Clim8), a digital investment platform to help consumers invest exclusively in companies focused on tackling the climate crisis, has raised a further £2.4 million in funding.
Investment has come from a range of venture funds, cleantech and technology experts and more than 1900 retail investors via the Crowdcube platform. Investors in this round include 7percent Ventures, Basil Capital, Evergreen Fund, EcoSummit Ventures and several ex partners of McKinsey.
This total exceeds its initial target by 600% and combined with a previous round of £2 million means that the company has now raised £4.4 million to help fulfill its mission to empower people to make a positive impact on the environment while delivering healthy financial gains for their personal futures. The Clim8 portfolio has made an excellent start and if it had been running for the last twelve months, it would have achieved a return of 16%.
“We are currently seeing a significant interest in sustainable assets. There is a positive dynamic for those companies that have green products and are well run, with the right governance,” said Duncan Grierson, the CEO of Clim8. “Awareness of the threat of climate change is realigning investment profiles towards sustainability and we are proud to be a part of that movement.”
The Clim8 investment platform, which has began its rollout to the 12,000 strong waitlist, is a “pureplay” investment platform focused only on sustainable businesses that have green products and services. The Clim8’s investment team are specialists in sustainability and don’t merely screen out fossil fuels, like many “ESG” funds, but instead proactively pursue companies that are “planet positive”.
Clim8’s goal is to move £billions into clean energy and truly green, sustainable businesses via a growing portfolio of companies involved in clean energy, clean technology, electric mobility, sustainable food and recycling.
The success of the company’s Crowdcube campaigns is proof of the growing global trend for investment into sustainable and ethical businesses, while also showing confidence in returns. It follows a renewed focus of global institutions on climate change, even during the Covid-19 crisis. The head of the United Nations has demanded more focus on climate change, emphasizing that the economic recovery is “a real opportunity to do things right for the future” and that climate change is close to a “point of no return” .
The strength of sustainability investing in the financial markets reflects this and a recent HSBC report showed that companies with a sustainability focus have outperformed other stocks in 2020. A report by Morgan Stanley revealed that 88% of investors believe that it is possible to balance financial gains with a focus on social and environmental impact.