Sustainable funds invest in companies or projects selected for strong environmental, social, and governance practices — or for specific sustainability themes like clean energy. They let you diversify across many holdings while applying ESG or impact criteria in one product.

Types of sustainable funds

ESG integration. Considers ESG factors alongside financial analysis across broad holdings.

Exclusion funds. Filter out sectors such as fossil fuels, tobacco, or weapons.

Thematic funds. Focus on areas like renewables, water, or gender equality.

Impact funds. Target measurable environmental or social outcomes as core objectives.

What to check before investing

Read the fund's SFDR article classification (in the EU), full holdings, fees, and track record. Compare the manager's voting and engagement policies. Sustainable labels are regulated more tightly in Europe, but due diligence still matters.

Sustainable funds and bunq

Explore sustainable options through bunq Stocks and learn how bunq approaches responsible banking on about/sustainability. Pair fund investing with everyday actions — like tree planting on spend — that reflect sustainable finance beyond your portfolio alone.

Frequently asked questions

Do sustainable funds cost more?

Fees vary. Some passive ESG ETFs are low-cost; active impact funds may charge more for research and reporting.

Are sustainable funds always lower risk?

No. They still face market risk. Some argue good ESG practices reduce long-term company risk, but prices still fluctuate.

How are sustainable funds different from green bonds?

Green bonds are debt with proceeds tied to green projects. Sustainable funds usually hold equities or mixed assets with broader ESG or thematic mandates.