What makes a company "sustainable" or "ethical"?

Sustainable and ethical companies prioritize environmental and social responsibility in their core business operations. This includes using recycled or renewable materials, reducing carbon emissions, ensuring ethical sourcing of materials (like conflict-free diamonds), and creating products that solve environmental problems. The companies in this collection have made these practices fundamental to their business models rather than just marketing initiatives.

What is ESG investing?

ESG investing considers Environmental, Social, and Governance factors alongside financial metrics when evaluating companies. Environmental factors include carbon emissions and resource usage; Social factors cover employee treatment and community impact; and Governance relates to company leadership and business ethics. Several ETFs in this collection (like KRMA) specifically track companies with strong ESG characteristics.

What are ETFs and how do they work in this collection?

ETFs (Exchange Traded Funds) are investment funds traded on stock exchanges that hold assets like stocks, bonds, or commodities. The ETFs in this collection (ETHO, ERTH, CRBN, SDG, KRMA, and NZAC) each track different indexes of sustainable companies—giving you exposure to many eco-conscious businesses through a single investment, rather than having to buy individual stocks separately.

Why might sustainable companies have growth potential?

Sustainable companies are positioned for potential growth for several reasons: increasing consumer preference for eco-friendly products, tightening environmental regulations that they're already compliant with, potential cost savings from efficient resource use, and brand loyalty from value-aligned customers. As climate concerns intensify, companies with sustainability at their core may have competitive advantages over those scrambling to adapt.

What are the UN Sustainable Development Goals?

The UN Sustainable Development Goals (SDGs) are 17 interconnected global objectives established in 2015 to address challenges like poverty, inequality, climate change, and environmental degradation by 2030. The SDG ETF in this collection invests specifically in companies whose products and services contribute to achieving these goals, from clean energy to sustainable infrastructure.

15 handpicked stocks

Guilt-Free Collection

Invest in companies that are making a real difference. This collection features businesses committed to sustainability and ethical practices, carefully selected by our analysts for their positive impact and growth potential in our increasingly eco-conscious world.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 18