Going greenWhile there is scope to invest in ethical and environmental businesses via traditional investment routes, the beauty of using an IFISA provider is that you can self-select the company or project that you want to invest in. For example, if you feel particularly enthusiastic about investing in clean energy to help families in Africa, you can do so through Ethex. Investors concerned about the social impact of their investments can use their IFISA to support individual businesses whose ethos is “in line with their own values”, says Bruce Davis, founder of Abundance Investments.
Abundance provides green energy investments as part of its IFISA. Through the platform, businesses seeking to raise capital can issue bonds offering a fixed return. Interest and capital are repaid either at regular intervals or on maturity, depending on the terms of the bond. One example is CoGen, a British company seeking £7m to develop its business of generating energy using waste that would otherwise go to landfill. It is issuing a four-and-a-half year bond through Abundance. With a healthy annual return of 10 per cent, it is one of Abundance’s “riskier investments”, says Davis.