Independent think-tank, 2° Investing Initiative (2DII), has launched its retail investment platform, MyFairMoney, which aims to provide transparent, impartial information for retail investors looking to marry their sustainability preferences with personal investment decisions.
MyFairMoney becomes the only UK solution incorporating multi-data inputs into its analysis of the 3,000 funds on the platform whilst remaining 100% non-profit. The platform remedies the information asymmetry plaguing investors concerned by global issues surrounding sustainability, climate change and social justice through operationalizing their savings and investments.
Despite increasing opportunities for consumers to invest in green financial products, an abundance of sustainability labels and often misleading ESG marketing can make it difficult for investors to judge complex investment products according to individual sustainability aspects.
In order to combat this disparity in inputs/outputs, the MyFairMoney platform in the UK enables users to make informed choices as to where their money goes. As an independent, non-commercial platform that informs personal investment decisions, MyFairMoney develops a sustainability profile with users in order to ascertain their key priorities, and uses a Paris compatibility score to measure the plethora of funds available on the platform against the Paris Climate Agreement.
The platform operates using three key pillars:
1. Interested investors can find out more about sustainable investment on the MyFairMoney website, which is informed by 2DII’s market leading research in the development of climate metrics.
2. With the help of a questionnaire, investors can determine their personal sustainability profile, which can form the basis of an advisory discussion with a financial advisor.
3. The extensive fund database contains over 3,000 funds and can provide detailed information on the sustainability of fund products. Private investors can search for individual funds and check or filter them using 39 different sustainability preferences.
“On the heels of COP26, individuals are increasingly interested in investing in line with their values,” said Jakob Thomae, Executive Director of 2DII. “Increasingly, we are seeing targets set for green finance missed and a mis-alignment with the goals of the Paris Climate Accord. With the MyFairMoney platform, we are creating the first independent tool that comprehensively accompanies consumers in the complex process of integrating their unique sustainability goals into their investments. This creates not only greater transparency for investors but an incentive for funds to align their process to the goals of the PCA.”
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Looking to the future, MyFairMoney said it will make sure that the platform evolves in order to give as much voice and information to retail investors as possible in order for them to actively engage with the companies that they’re invested in.
Small investors are the largest holders of financial assets in Europe
As per its report, Retail Clients Want To Vote For Paris, retail investors are the largest holders of financial assets in Europe but currently play a minor role in corporate governance of listed companies. That is why the company said it already thinking of integrating a voting functionality to allow individuals to give their opinions on sustainability-related resolutions at shareholder meetings.
“The reallocation of households savings will be key to fund the transition toward a low carbon economy and could certainly be achieved as retail investors themselves say they want to invest sustainably,” said Thibaut Ghirardi, Managing Director of 2DII France. “They just need tools to better inform their investment decisions and overcome market information asymmetry. I’m convinced that the MyFairMoney platform will address this challenge which is why it is so exciting to launch it in France and in the rest of Europe.”