App launches allowing investors to offset portfolios

‘Offsetting in any capacity doesn’t let companies off the hook’ but allows investors to take action now


Natalie Kenway

Green fintech company Sugi has launched a smartphone app allowing UK retail investors to offset the carbon impact of their investment portfolios.

Previously, Sugi allowed users to calculate the carbon impact of their holdings and compare with similar investments in order for them to choose greener choices. But, as highlighted by the fintech, investing exclusively in low-carbon companies is not always desirable and many companies are still at the beginning of their transition to a sustainable business model.

As a result, the company has now partnered with Ecosphere+ to offer verified carbon credits generated by forest conservation projects allowing users to offset by targeting specific investments or their entire portfolio.

Josh Gregory, CEO and founder of Sugi, explained:  “We recognise that there are a number of valid reasons for investors to have holdings in higher carbon industries, which is why we’re enabling investors to rebalance their impact through our new offsetting feature. 

“Offsetting in any capacity doesn’t let companies off the hook. The pressure still remains on companies to decarbonise their operations and value chains. It does however give investors the option to take climate action now, should they wish to. It’s just one of many features we’ve got planned to make it easier for everyday investors to engage with greener investing.” 

See also: – IPCC report draws ‘line in the sand’ for decarbonisation of finance

Ecosphere+ credits are certified by Verra’s Verified Carbon Standard, a voluntary greenhouse gas certification programme, which demonstrates that emissions have been reduced and the underlying projects deliver lasting climate benefits. These credits are also verified by the Climate, Community and Biodiversity Standard, which certifies wider project benefits beyond emission reductions, specifically biodiversity conservation and the empowerment of local communities, Sugi said.

Lisa Walker, CEO of Ecosphere+, commented: “We are thrilled to be partnering with Sugi to enable greener retail investing in the UK. With the recent IPCC report exposing the true severity of the climate and biodiversity crisis, UK retail investors will increasingly be looking for ways to take immediate action on the journey to net zero. Sugi’s timely feature is therefore well placed to have an important impact on climate and nature, and we’re excited to be on this journey with them to capture new channels of finance for the carbon projects we represent.”

The app measures the carbon impact and temperature data for approximately 95% of the global listed equity market and tens of thousands of exchange traded funds, actively managed funds and investment trusts. It uses Open Finance technology, through its partner Moneyhub, to enable users to link their investment portfolio to the app and access personalised impact data. All of the app’s impact data is sourced from S&P Global Trucost. 

Sugi is available to download on the App Store

Latest Stories