Traditional investments look at the risk of you losing your money and the potential reward of increasing your money.

And if you choose a “good” investment, like an ESG fund, it will go one further — excluding “bad” companies from the list your money is invested in.

But with impact investing, companies need to do more to show they deserve your investment. They have to prove they are proactively impacting the world in a positive way, whether that’s championing workers rights or nominating a fully representative board.

At Cooler Future, we’re focusing on the impact money can have in the fight against climate change. It’s the most urgent problem facing the world today, and we believe the way we invest our money can provide the solution.

We call this Climate Impact Investing.

Meet Fleur. She wants to invest in a company that shares her values regarding climate change, alongside generating good financial returns.

She hears about Leo's company, which makes and sells really cool bikes. It looks like a good match because as well as strong profits, ReallyCoolBikes has a five year plan in place to significantly reduce the company’s carbon emissions.

Fleur buys one of the five company shares for €1. When it comes to decision making, Fleur’s share means that her voice will now be heard by Leo when making business decisions.

Leo reduces his emissions by 50% over the next two years, by getting rid of all excess packaging and switching to a factory powered by clean energy. The factory can also manufacture a brand new type of bike with pedal-powered lights, so Leo’s selling more bikes than ever before.

All of this means that the value of Fleur’s share has gone up by 25%. So if she wants to, she can now sell it for €1,25.

ReallyCoolBikes is a profitable business, and there is little risk that the company will go out of business. And crucially, it’s also a good investment when the impact on the climate is considered. So Fleur’s investment has grown, and she’s also helped reduce the emissions of ReallyCoolBikes.

And that is the power of Climate Impact Investing.

Climate Impact Investing makes your voice heard

When you invest in a company, your share makes you part of the business conversation. The more climate-conscious people invest, the louder that voice — which means more power to change things.

Climate Impact Investing rewards carbon emissions reduction

By redirecting money from businesses causing harm to the environment towards those helping the environment, you’re sending a message about how you want all companies to behave.

Climate Impact Investing helps you do more

Small actions matter — walking rather than driving, choosing a reusable coffee cup, recycling food packaging. But when you invest directly in the companies most affecting the environment, you do even more to make the world a better place.

Climate Impact Investing provides financial rewards

Just like any investment, the aim of Climate Impact Investing is for your money to grow over time. Emissions targets are becoming more of a focus for businesses everywhere, so the smart money is on those already tackling them.