What is a sustainable investment portfolio?  

A sustainable investment portfolio consists of investments that prioritise positive social and environmental impact. Only companies that produce socially or environmentally conscious products and services can be classified as "sustainable".

Why do we need sustainable investments? 

Many traditional investments, including pensions and funds, invest heavily in destructive profit-driven industries like fossil fuels, arms and tobacco – to name but a few. Green, otherwise known as sustainable, investments aim to direct capital into industries that support environmental and social well-being. 
 
Sustainable investing is one of the most powerful levers for change and is a growing force for good. Choosing these types of investments means you aren’t making financial profit at the expense of people or the planet.  
 
Whether you already invest with Triodos or want to learn more about how to green your portfolio, our top tips explain how to enhance your sustainable investment approach. 

1. Shift to impact investing funds 

Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside financial returns. The Triodos investment strategy is wholly focused on investing for impact, with a focus on five transition key themes: 

• Food transition 
• Resource transition 
• Energy transition 
• Societal transition 
• Wellbeing transition 
   

Read more about our transition themes. 

​​​​Each company we invest in produces products or services that also contribute towards at least one of the UN’s sustainable development goals, helping to build a more sustainable future.  

2. Diversify across our fund range 

We offer four funds, each of which has a different area of focus and risk and reward profile.  

The Triodos Global Equity Impact Fund invests mainly in larger businesses across the globe, moving towards greater sustainability. It’s well diversified and a great place to start investing. 

The Triodos Pioneer Impact Fund also invests globally, but focuses more on smaller to medium sized companies. Many of these are pioneering the transition to a more sustainable economy and society, although they are riskier than their larger counterparts. 

The Triodos Future Generations Fund also invests in riskier small to medium-sized companies, but has a specific focus on firms contributing directly to the well-being and development of children. 

Finally, the Triodos Sterling Bond Impact Fund invests in UK-based bonds instead of shares, and is a lower risk option aiming to generate a positive impact with a stable income. 

By diversifying across several of these funds, you can spread the risk and diversify your impact. You can find out more about these funds via their fact sheets.

If you have investments elsewhere, you may want to explore exactly what your funds are invested in. Many Environmental, Social and Governance (ESG) and sustainable funds invest in companies many consumers consider unsustainable. Shifting more of your portfolio into impact funds with Triodos can have a significant impact, both financially and socially.  
 
Learn more about investment greenwashing in this short video.  
 

3. Diversify further with green and social bonds 

If you’re looking to balance your portfolio while still supporting sustainable projects, green and social bonds are a great option – especially now. The Triodos Sterling Bond Impact fund invests in bonds that finance projects aimed at tackling climate change and reducing social inequality. The fund currently yields 4.9% (variable and not guaranteed) which is tax-free when you invest in an ISA. 
 
Read our article on why it could be a good time to invest in bonds.    

4. Check where your pension is invested 

Millions of people in the UK have pensions and make regular contributions to ensure their financial security in the future. However, many savers are unaware of how or where their pensions are being invested. Traditionally, pension funds are invested in high-performing funds focused on financial growth, which often means they support unsustainable sectors such as fossil fuels, arms, and tobacco. By switching to a sustainable pension fund, you can have peace of mind knowing your money isn't fueling destruction.  
 
Find out more about ethical pensions here.   

5. Track the impact of your investments 

As a sustainable investor, it’s crucial to stay connected with the positive changes you’re helping to create. When you log into the Triodos mobile app, you can see the impact your investments are having. Triodos investment customers also receive quarterly investor fund updates, detailing fund performance and wider economic information, as well as the social and environmental outcomes of your investments. Regularly tracking your portfolio’s impact ensures that you’re staying true to your sustainability goals and gives you the opportunity to make adjustments where necessary to amplify your positive influence. 
 
Sign up to our quarterly investor fund updates.

Getting started 

You don’t have to invest a lump sum, you can save monthly in our funds from as little as £25, saving little and often. In fact, many experts think monthly investing is better because it averages out your purchase price and reduces the risk of you investing when markets are at their peak.  

Even relatively small amounts can quickly grow into a sizeable amount. To see how much your monthly investments could be worth, visit the page of the fund you’re interested in and try the investment calculator. 

By fine-tuning your sustainable investment strategy with these five tips, you can ensure your portfolio continues to reflect your values and contributes to the global transition to a more sustainable future.  
 
Don’t forget, you can log in to the Triodos mobile app to track the impact of your investments. You can also set up monthly direct debit top-ups, making it easier to regularly contribute to your investments. 
 
Whether you’re reviewing your existing portfolio, exploring diversification or supporting impact-driven funds, every action you take helps make a lasting positive difference for the planet and society. With Triodos, your investments aren’t just about financial returns—they’re about creating a better, more sustainable world.