Nuclear power goes green – how sustainable is my investment?


Unclear selection criteria

And indeed, depending on the product, sectors or companies that are not normally considered green or socially friendly are excluded, often the arms industry, the tobacco industry or even coal.

However, not every service provider is strict. For example, some opt for the so-called best-in-class display approach. The “worst” offenders are sorted out – the least bad can still be added to the product.

It is not easy for investors to find the right sustainable financial product anyway – at the beginning there must always be a question of personal criteria and no-gos.

Save resources by using nuclear power

From next year, it will also include the question of whether or not you can live with a nuclear power plant owned by an ESG ETF. Since then, energy companies can use green bonds to raise money for new nuclear and gas plants. In order to receive the eco-label, they must receive a building permit by 2045, and the old furnaces must be renovated by 2040. From 2050 there must be a plan for the final disposal of radioactive waste.

Proponents see nuclear power as a resource-saving transitional solution to sustainable energy production methods such as wind and hydropower.

But most investors still don’t agree that nuclear and gas are sustainable. in 2021 In the summer, 80 percent of Germans were against it in a survey by the citizens’ movement Finanzwende.

Sellers should adapt

Some issuers plan to make it clear to their investors whether a sustainable product includes nuclear and gas companies such as DWS group. On the other hand, others believe that regulation will not have a significant impact on financial markets and therefore do not want to change their sustainability criteria.

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There are also suppliers who continue to refuse to invest in projects that use nuclear energy. This was announced by the European Investment Bank EIB and the German Development Bank KfW.

Investors have their eyes open

Here’s another rule of thumb for investors: Be open-minded when choosing an ETF. Anyone deciding not to invest in nuclear and gas – or at least not in sustainable financial products – should carefully examine the products and not blindly rely on the seal.

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