Name: Clim8 Description: Clim8 is an investment app that focuses on sustainable investments. They allow you to invest in a cautious, balanced or adventurous portfolio through a general investment account, stocks and shares ISA or a junior ISA. Why we like it Clim8 is one of the only apps out there to completely focus on investments that help solve climate change. It’s a good option for investors who want to dedicate a percentage of their portfolio to sustainable investment. Pros Cons
Clim8 Review
Overall
3.6
Clim8 Expert Review
In this review we:
- Give our ratings based on their nearest peers
- Tell you what we think of them after testing them with real money
- Highlight the key costs, facts and figures of their accounts
I was having dinner in someone’s garden the other night, it was about 30 degrees in Surrey and far too hot and then out of the blue and completely off-topic someone almost shouted “climate change is real people”. We were discussing something that wasn’t all that relevant to climate change at all. But it was, because actually everything is relevant to climate change now. It’s especially relevant as I’m inside writing this review with the blinds closed and the fan on because it’s too hot to go outside. And one area where there is a big shift to be more climate change inclined is investing, and one app that addresses this issue is Clim8.
I interviewed the CEO of Clim8, Duncan Grierson a while ago because I was intrigued about whether or not he thought that people needed to sacrifice sustainability for performance and he said:
Actually, what we’re finding now, certainly in the investment space, is you can have as good, if not better returns, if you’re putting your money into companies that are making a difference on climate change.
So there you have it, past performance shows that you can beat the benchmark by impact investing. The difference of course between ESG investing and investing in many ethical, sustainable and ESG funds is that it can just be a box-ticking exercise that discounts certain types of industry. Whereas impact investing is investing in things that are seeking to directly reduce climate change.
There are a few impact investing apps on the market at the moment and many are still in the very early stages, mostly trying to raise money on crowdfunding sites. But one thing I particularly like about Clim8 is that they are quite transparent and have shown how many users they have in their latest round. It really annoyed me (and many other equity crowdfunding investors) when Circa5000 raised funds on Crowdcube and refused to say how many clients they had, how much money their clients had invested with them and what their profit and losses were like. How can you invest in something when you don’t know if it makes money or how it intends to make money in the future? I interviewed the CEO Tom McGillycuddy (when it was tickr) a while ago, so even asked him directly and was blanked.
Valuations on crowdfunding sites are absolutely bonkers though because from the very start, the angel investors backing the company, then the investment funds that buy-in, then VCs, and crowdfunding investors want to see growth, and ultimately an exit on massive multiples. So, despite the fact that Clim8 as a business doesn’t really make much money and doesn’t really have very many customers, they are valued at more than £30m. Maybe to some, that doesn’t really matter. Maybe what matters to them is what they are trying to do, which is encouraging people to invest in things that make the world a better place.
Clim8 do that by investing your money in either funds or shares that help climate change. The more risk you are prepared to take the more the percentage of shares are in your portfolio, if you want to take less risk you have a higher percentage of funds. So it’s all about investing money directly into things that create climate change solutions rather than problems. Their portfolios so far have just about beaten the benchmark. But what is really interesting is that they are looking to create their own funds in the future focussing on what they see as 6 megatrends over the next three decades, green energy, clean mobility, clean technology, sustainable food, circular economy and water systems.
It’s relatively cheap too. Account fees are 0.6% a year, which is the same as Weathify, but less than Moneyfarm and Nutmeg. Although the underlying fund management fees (which are charged by the funds that Clim8 invests in) are slightly higher, than the other investment apps at 0.35% to 0.5%. This is to be expected because unlike Nutmeg and Moneyfarm Clim8 invest in specialist funds and the more work you have to do to ensure a fund and portfolio are adhering to impact investing criteria the more it will cost to run.
Clim8 says that “the defining feature of our customers is that they want to invest in companies making a positive climate impact”. So if you want to funnel some of your money into doing good, you can do so through a general investment account or ISA and coming soon they say a junior ISA is coming along, so you can invest in your children’s future, by investing in your children’s future.
Customer Reviews
5/5
Pros:
Sustainable and ethical values
Cons:
Nothing
Leave a review
- Tell us what you think of this company and help others make more informed financial decisions.
3/5
Pros:
green credentials
Cons:
Give clear information
2/5
Pros:
ease of use
Cons:
not clear what you are actually investing in. seems to be little accountability.
2/5
Pros:
Honestly have none, was not a blood experience. The app is buggy and my portfolio pretty much never seen a profit in all my time using them.
Cons:
I had my portfolio blocked due to being deemed unsuitable as I’m not making a lot of money, access to financial tools should not be solely for the rich.
1/5
Pros:
Consciously investing in companies which are good to the environment
Cons:
Increased exposure and growth
5/5
Pros:
Sustainable and ethical values
Cons:
Nothing
1/5
Pros:
ethos
Cons:
Lots! They appear to have had a lot of alarming teething problems
5/5
Pros:
The most authentic sustainable investment platform.
Cons:
N/A
5/5
Pros:
Ethical
Cons:
Better rates
5/5
Pros:
Simple to use app which I can use to easily track my investments
Cons:
Nothing comes to mind
5/5
Pros:
Easy to use and good variety of funds/investments
Cons:
Flexibility to select individual investments
4/5
1/5
Pros:
Nothing good
Cons:
Communications
3/5
Pros:
nothing specific
Cons:
increase data available on the platform
5/5
Pros:
The opportunity to help innovative green sector companies to grow and make a difference
Cons:
Perfect already
4/5
Pros:
Sustainable Investments
Cons:
Nothing
3/5
Pros:
All green
Cons:
Provide more detail on investment decisions
5/5
Pros:
ESG
Cons:
Not much
5/5
4/5
Pros:
I have no words to describe them
5/5
4/5
Pros:
Ethical approach
2/5
Pros:
Environmentally friendly
Cons:
More investment control
5/5
Pros:
Good returns in and uncertain market
Cons:
Not stop me investing
5/5
Pros:
App
4/5
Cons:
Lower fees
1/5
Pros:
1000
5/5
Pros:
sustainable
Cons:
more products
5/5
Pros:
Enviromental commitment
Cons:
N/A
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
