Direct lending is best way to go green
Direct lending is the best way to go green, according to Neil Faulkner, founder of peer-to-peer research firm 4th Way.
As the trend for ESG-friendly investment continues, Faulkner told Peer2Peer Finance News that investing directly in businesses and people is “quite possibly the best means to invest in a green or ethical way.”
“Other ways tend to provide no help where it is actually needed,” said Faulkner. “For example, if you buy shares in a green or ethical company on the stock market, those companies don’t get a penny of your money.
“That’s because you’re merely buying shares second hand from another investor.
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“In contrast, lending directly means your money goes straight to supporting your chosen causes.”
The P2P lending expert went on to note that there are a number of P2P lending platforms which allow investors to fund renewable energy projects as well as social welfare initiatives.
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“You have Abundance, Downing Crowd, Relendex and Triodos offering lending against renewable energy projects,” he said.
“Triodos also does lending related to the environment and animal welfare, as well as to local clubs and charities, and businesses in sustainable or organic food.
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“Plus you have Assetz Exchange, which offers lending that goes towards accommodation for people using the much-needed supported-living scheme.
“If investors were to consider a portfolio including lending accounts from all five of the providers I mentioned, they are likely to be satisfied with their results – and can justifiably feel good about themselves for supporting them.”
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