Green Strategy Sets New Standards in Sustainable Digital Investment

The new investment category responds to the increasing demand for green financial products as well as changing climate and socio-political challenges, supported by a Robo-Advisor licensed under §32 KWG. Based on the apeiron® technology and the strictest ESG and SRI criteria, Ginmon has developed a 5-stage system for selecting green ETFs. This guarantees that investors' capital is only invested in ETFs that actually include sustainable companies, thus avoiding "greenwashing." 

Unlike other providers, Ginmon does not just exclude particularly environmentally harmful companies; it actively pursues a “Best-in-Class” approach. At the end of the selection process, only the most environmentally friendly 25% of companies within each sub-category of the underlying index are considered. Additionally, a “Low Carbon Filter” excludes the 10% of all companies eligible for the portfolio that have the highest CO2 emissions. This results in approximately 70% fewer emissions compared to the benchmark. Furthermore, Ginmon completely refrains from investing in socially controversial sectors such as the tobacco and arms industry.

As known from Ginmon, apeirongreen also complements stock ETFs with bond, commodity, and real estate ETFs to optimally protect clients' portfolios against fluctuations. Here too, apeirongreen adheres to the highest sustainability standards. Customers invest in “Green Bonds” and development banks. In the real estate ETF within apeirongreen, environmental protection is also the focus. Ginmon only invests in products that include sustainable and energy-efficient residential and commercial properties. The commitment of the property companies and project developers listed in these ETFs to uphold this promise is certified by independent authorities. 

Another special feature is that a physical gold ETF is the only commodity component in the portfolio. Gold is currently the only precious metal that can be mined in compliance with ESG and SRI standards. The selected gold ETF has been in existence since 2012 and has proven to be a reliable means of environmentally and socially responsible mining of the precious metal. For Ginmon, sustainability not only means that climate protection is taken into account during mining, but also that workers are paid fairly, accidents are prevented, and child labor is avoided. 

“Although not the first sustainable ETF portfolio among German Robo-Advisors, we do offer the strictest by far,” says managing director Lars Reiner. He adds: “We provide our investors with the opportunity to actively contribute to solving the global climate crisis and socio-economic problems worldwide through their investments.”

Fabian Knigge, Chief Investment Officer at Ginmon, adds: “We are convinced that targeted investments can effectively support the Sustainable Development Goals issued by the UN. In today's world, every company should utilize its unique capabilities to achieve these global goals. With apeirongreen, we are now making a first, but certainly not the last, contribution.”

This approach pursued by Ginmon is unique in the German market, which is why apeirongreen significantly stands out from comparable products of other Robo-Advisors and large ETF providers. The Frankfurt-based firm is thus once again driving innovation within the industry after the great success of their “factor investing” strategies.

About Ginmon

The digital asset manager Ginmon, founded in 2014 by Lars Reiner and Ulrich Bauer, offers private clients services that were previously reserved for very wealthy clients. Ginmon operates with approximately 30 employees as a licensed asset manager under §32 of the German Banking Act and is subject to oversight by the Federal Financial Supervisory Authority (BaFin). The proprietary apeiron® technology monitors and optimizes clients' portfolios, which Ginmon has custodied at BNP Paribas, the market leader for custody in Germany. As the only provider, Ginmon consistently relies on the three-factor model (“factor investing”), an investment concept inspired by Nobel laureates Eugene Fama and Kenneth French. In cooperation with the consulting firm Mercer, Ginmon also reaches out to employers who want to provide their employees access to digital asset management to complement their company pension plans.