When it comes to most investments, investors typically seek a good balance between potential financial returns and the risks involved. Sustainable investing, however, introduces a third factor: the positive impact of your investment. And yes, this can also be achieved through crowdfunding!
What is Sustainable Investing?
Sustainable investing involves allocating capital to projects, companies, or funds that aim to generate positive social and environmental effects alongside financial returns. At Lendahand, we refer to this as social returns. With sustainable investing, you focus your investments on activities such as reducing CO2 emissions, developing innovative solutions in renewable energy, or supporting fair labor practices.
Your sustainable investments consider the long-term impact on the planet and society. By consciously choosing to invest in companies that contribute to the United Nations' Sustainable Development Goals (SDGs), you are more than ever investing in the future.
Who is Sustainable Investing Suitable For?
Investing in a future you can be proud of through sustainable investing is more accessible than you might think. Various types of investors engage in sustainable projects, and we’ve outlined them for you:
- Individual Investors: Everyone, from small savers to wealthy individuals, can opt for sustainable investment options like green bonds, sustainable investment funds, or crowdfunding projects.
- Institutional Investors: Pension funds, insurance companies, and other institutional investors incorporate sustainability into their investment strategies to improve long-term returns and demonstrate social responsibility.
- Businesses: Companies can engage in sustainable investing by allocating capital to sustainable projects or collaborating with other businesses and governments in sustainability-driven initiatives.
- Government Agencies: Governments and public institutions can invest funds in sustainable infrastructure projects, renewable energy sources, and other eco-friendly initiatives.
- Non-Profit Organizations: Philanthropic organizations and NGOs can deploy their financial resources into sustainable investments to support their missions while also generating financial returns.
Anyone who values the long-term health of the planet and society can contribute through sustainable investing.
How Does Sustainable Crowdfunding Work?
Crowdfunding is just one of the many ways you can sustainably invest your money. Over the past decade, both crowdfunding and sustainable investing have gained popularity for various reasons. When you look at the unique opportunities that arise where these two ideas intersect, you see particularly interesting opportunities for investors.
Lendahand is accessible and therefore a great match for most investors. If you want to start with sustainable investing, sustainable crowdfunding through Lendahand is an easy entry point thanks to the minimum investment amount of just 10 euros. For those looking for larger investment opportunities, Lendahand also offers private investing.
Make a difference with your investments 24/7. With Lendahand, you even have the option to manually select your projects or combine it with automated investing through Auto-Invest.
Sustainable Projects by Lendahand
At Lendahand, you invest in financial institutions and impactful companies in developing countries. Your investments reach multiple small entrepreneurs and communities.
Investing via crowdfunding with Lendahand is considered sustainable investing for several reasons:
- Combating Poverty: Lendahand's mission is to fight poverty by investing in people and their businesses. All crowdfunding projects contribute to making a positive social impact, such as creating jobs, promoting financial inclusion, and supporting female entrepreneurship.
Read the story of four Kenyan women entrepreneurs who have achieved a more stable income thanks to microfinance from U&I Microfinance Bank.
- Sustainable Development: Lendahand focuses on financing projects and companies in emerging countries that are active in sectors such as sustainable energy and sustainable agriculture.
What are the five benefits of solar energy for a Kenyan flower farm? Discover them here.
- Supporting SDGs: Aligned with the United Nations' Sustainable Development Goals (SDGs), the crowdfunding projects via Lendahand aim to reduce poverty, promote gender equality, and encourage sustainable economic growth.
In summary, through Lendahand, the crowd invests in sustainable projects that seek both financial returns and positive environmental and social effects.
Measurable Impact Results
Can the social returns of these sustainable investments be proven? Fortunately, yes! Thanks to detailed reporting and impact metrics that we measure, Lendahand provides all investors with insights into the impact of their investments.
Gain insight into how your money contributes to sustainable development. Read the Lendahand Impact Report 2023 here.
Start Today, Make Tomorrow More Sustainable
Do you want to start sustainable investing today? Create a free account with Lendahand and start making a positive impact with as little as 10 euros.
What Other Sustainable Projects Exist?
Are you looking for other forms of sustainable investing beyond sustainable crowdfunding? There are various forms of sustainable investing you can consider:
- Green Bonds: These bonds finance specific environmental and climate projects, such as renewable energy, energy efficiency, and clean water.
- Sustainable Investment Funds: Funds that invest in companies with strong environmental performance, socially responsible practices, and good governance (ESG criteria).
- Impact Investing: Investments in companies, organizations, or funds with the intention to generate measurable, positive social and environmental impacts alongside financial returns.
- Sustainable Crowdfunding: Through platforms like Lendahand, individuals can directly invest in sustainable projects and companies in emerging countries.
- Renewable Energy Projects: Investments in projects that develop and expand sustainable energy sources like solar energy, wind energy, and biomass.
- Social Enterprises: Investing in businesses that address social problems and provide solutions that create economic and social value.
- Green Real Estate Funds: Funds that invest in sustainable and energy-efficient buildings and infrastructure projects.
- Microfinancing: Investing in microfinance institutions that provide small loans to entrepreneurs in developing countries to start or expand their businesses. You can also combine this with sustainable crowdfunding on platforms like Lendahand.
These forms of sustainable investing enable investors to use their financial resources to make a positive impact on the world while also aiming for financial returns.
Your First Step Towards Sustainable Investing
Ready to take your first step towards sustainable investing? Start with crowdfunding and directly contribute to one or more of the Sustainable Development Goals. Create a free account with Lendahand and start making a positive impact with as little as 10 euros.