Get to know green investment

Green investment is an investment activity that prioritizes environmental, social and good governance aspects. This green investment principle prioritizes impact and the environment in a sustainable manner in addition to economic goals.

In this case, the prospect of this investment activity is a commitment to environmentally friendly investment activities, conservation of natural resources, discovery of alternative renewable energy, control of natural damage, waste management to climate change.

In the midst of extreme climate change issues, this instrument is able to support the nature conservation movement. Not only for material gain, the instrument has a social responsibility based on 'green' principles.

Therefore, the existence of this investment instrument is a means to encourage environmental-based development plans and invite investors to participate in dealing with environmental issues.

Green Investment Benefits

There are also various benefits of this investment instrument for the environment and society as follows.

1. Forms of Environmentally Friendly Project Support

The existence of this asset instrument is an opportunity for investors to support environmentally friendly projects. The project can be in the form of natural resource conservation, development of alternative energy sources, or other business activities that prioritize green and environmental aspects.

2. Reducing Climate Change

Now, there are many asset instruments that support climate change prevention. Through investment instruments, investors also contribute to infrastructure development to prevent climate change. That way, development projects do not sacrifice environmental damage.

3. Investment with Affordable Capital

To start a green investment, you can allocate some of your income with affordable capital. If you want to invest in green retail sovereign sukuk, then you allocate as income starting from IDR 1 million. In addition, the initial capital to purchase RSG-lined mutual fund products starts from Rp. 100,000 in the tamanduit application.

4. Easy and Safe Investment Transactions

Now, you can carry out environmentally friendly investment activities in various asset instruments easily and safely. Purchase or sale transactions can also take place online. In the tanamduit application, you can invest in ESG-based retail mutual funds and state sukuk.

5. Transparent investment product performance

In general, environmental-based investment instruments have the advantage of being transparent about their product performance. For example, the FTSE Russell (Financial Times Stock Exchange) Indonesia ESG index instrument which contains a collection of stocks that have systematically gone through the ESG Rating process with more than 300 indicators. The rating process is transparent and objective.

6. Providing Optimal Benefits

Green investment is an alternative to obtaining passive income for the investor community. Both mutual funds and environmental-based bonds, these instruments always provide optimal benefits in the medium and long term.

For investors who want to optimize some of their income in the short to medium term, you can choose money market mutual funds or Government Securities. However, you can choose mixed mutual funds or stock mutual funds for long-term investments.

Green Investment Example

In Indonesia, green investment is increasingly popular. There are several investment sectors ranging from environmental, social, and governance (ESG) to Green Sukuk. So, one of the green sukuk-based state bonds is the SBN series ST009.

During the offering period (11-30 November 2022), you can invest in sharia-based and environmentally sound state securities. You can participate in the development of the country as well as take part in the movement to protect the earth.

There are also mutual fund products with investment portfolio allocations to stock instruments from companies that prioritize ESG principles such as the Mandiri FTSE Indonesia ESG Index mutual fund. This mutual fund is perfect for investors who want to invest for the long term while also having concern for environmental, social, and governance (ESG) issues.

Conclusion

Green investment is an investment activity that is based on environmentally friendly principles. In addition to achieving economic goals, this investment activity also supports projects that are committed to carrying out natural damage control, waste management, natural resource conservation activities, to support nature conservation.

Apart from supporting environmentally friendly projects, investors can also invest with affordable capital easily and safely. This investment asset provides optimal benefits and product performance is also transparent.

If you want to invest for a short term of 2-3 years, then you can choose green sukuk during the offering period. However, you can choose Index mutual fund products to optimize some of your income in the long term of more than 5 years. For example, mutual fund products Mandiri Index FTSE Indonesia ESG and retail green sukuk ST009.

So, you can invest in these two products in the plant a duit application. Starting from IDR 10,000, you can invest in mutual funds and gold starting from IDR 10,000. Apart from that, you can also get passive income from Government Securities (SBN) products, both conventional and sharia SBN, starting from IDR 1 million.