Estonian-founded sustainable fintech company Grünfin has launched an investment platform focused on value-based investments, giving European consumers easy access to what it calls “green savings that promise a greater impact on their carbon footprint than many other eco-conscious lifestyle choices combined”.
Founded by two women, Karin Nemec and Triin Hertmann, Grünfin “aims to take out the fear and complexity of setting up a sustainable investment portfolio. It also challenges the myth that sustainable investments have a lower potential for returns than regular investments.”
According to the company, studies have shown “that shifting savings to sustainable assets can have a more than twentyfold impact on consumers’ carbon footprint than giving up flying, becoming a vegetarian and moving to a renewable energy provider combined”.
“This makes ‘greening your finances’ an often-neglected but hugely important part of lowering your carbon footprint,” the company said.
Investments considering environmental, social and governance factors
Addressing the gap between people who’d like to invest sustainably and who actually do, Grünfin will aim to compensate for the lack of knowhow that’s often a barrier for aspiring investors.
The platform will select the best sustainable exchange-traded funds for customer portfolios, considering environmental, social and governance factors as well as the UN Sustainable Development Goals, the company asserted.
The startup’s customers “will be able to choose between an environmental, equality or health-themed investment portfolio, set up a monthly payment and a time goal for the investment. Grünfin encourages long-term investing as a way to achieve the best performance for an overwhelming majority of retail investors.”
Grünfin has raised €2 million in funding for the launch. Its team has many former employees of Wise (formerly TransferWise), the Estonian-founded, London-based money transfer company.
Cover: Grünfin’s team in Tallinn. Photo by Jake Farra.