You want your investments to grow your wealth while supporting companies that do good for the world. It sounds straightforward enough.
But sustainable investing in Belgium comes with real trade-offs. You might face higher fees, confusing ESG labels, or funds that aren't as "green" as they claim to be. And there's always that nagging question: will you sacrifice returns for your values?
The good news? Most of these concerns are overblown. Here's what you actually need to know about sustainable investing as a Belgian, including the real pros and cons that matter for your portfolio.
What is sustainable investing?
Sustainable investing means putting your money into companies that try to do good for people and the planet. You might also hear it called “responsible investing” or “ESG investing”.
It focuses on three areas:
- Environmental: reducing emissions, using resources wisely, supporting clean energy.
- Social: treating workers fairly, respecting human rights, helping communities.
- Governance: being transparent, acting ethically, and staying accountable.
In practice, most Belgians invest sustainably through ETFs that follow these ESG principles. For example, when you invest with Curvo, your money goes into globally diversified portfolios that leave out harmful industries like tobacco, weapons, or coal.
Pros and cons of sustainable investing
The benefits of sustainable investing
Put your money where your values are
When you invest sustainably, your savings don’t support companies that damage the planet or society. Instead, your money goes to businesses working on real solutions: renewable energy, clean tech, better healthcare, or education. For many Belgians, that alignment between values and investing is a big reason to choose this path.
Returns that hold up (or even outperform sometimes)
Some think sustainable investing means sacrificing returns. But that’s a myth. Studies show ESG funds often perform just as well, sometimes even better, than traditional ones. Why? Because companies that care about sustainability also tend to manage risk well, innovate more, and attract loyal customers and employees.
Less exposure to certain risks
Sustainable companies are often better prepared for future challenges. By avoiding polluters and bad actors, you reduce your risk of:
- Fines from stricter environmental laws
- Reputational damage from scandals
- Losses from fading industries like coal
As Europe pushes towards a greener economy, companies already meeting the bar are less likely to be caught off guard by new rules or carbon taxes.
Riding a long-term trend
Sustainability isn’t just a buzzword. Governments, institutions, and consumers are raising the bar for companies. The EU’s Green Deal, for example, is directing billions into green and sustainable industries. By investing sustainably, you're backing a trend that’s here to stay.
Feels good and helps you stay invested
It’s easier to stick with your investments when you believe in what they support. Knowing your money isn’t financing harmful industries can give you peace of mind, especially when markets get rough.
The drawbacks and risks of sustainable investing
The problem of “greenwashing”
Just because a fund says it's sustainable doesn't mean it truly is. Many funds slap on an ESG label but still invest in questionable companies. This practice is called greenwashing, and it can make you feel like you’re doing good when the reality is quite different.
No clear rules on what counts as "sustainable"
There’s no single definition of what makes a company or fund sustainable. One fund might avoid fossil fuels completely. Another might still include oil companies that promise to cut emissions. This lack of consistency makes it harder to compare funds and choose the right one for you.
Some funds are more expensive
Sustainable funds can come with higher fees than traditional index funds. That’s not always the case, there are low-cost sustainable ETFs too, but it’s something to watch out for. Always check the total cost (called the TER) before investing.
Less diversification
When a fund excludes entire industries like fossil fuels or tobacco, it becomes a bit less diversified. That can mean more ups and downs, or missing out on some sectors that still matter in the global economy.
Confusing ESG scores
ESG ratings aren’t always consistent. One agency might give a company a great score, while another rates it poorly. For example, a tech company might be praised for its low emissions, but criticised for poor governance. These mixed signals can make it tricky to know what you're really investing in.
How to get started with sustainable investing
Know what matters to you
Ask yourself:
- Am I looking to make the biggest positive impact?
- Or do I mainly want strong financial returns with a sustainability filter?
- Do I want to avoid entire industries, or support companies trying to change from the inside?
Your answers will guide the right approach for you.
Pick the right type of investment
For most Belgians, ETFs are the simplest and cheapest way to invest sustainably. Look for global ESG ETFs that include thousands of companies but apply sustainability screens.
Be mindful of fees and greenwashing
Not all “sustainable” funds are equal. Always check the fund’s TER (total expense ratio), and don’t rely on vague labels or marketing. Look for independent ESG certifications and read what the fund actually excludes.
Think long-term
Sustainable investing isn’t about quick wins. It works best when you stick with it over time. Monthly investing helps smooth out the ups and downs and lets your wealth grow steadily.
Use platforms built for Belgian investors
At Curvo, we make sustainable investing accessible:
- Portfolios built with low-cost sustainable funds
- Automatic monthly contributions
- Full compliance with Belgian tax rules
- Clear info on what you’re investing in and why
Find out how Curvo can help you grow your wealth sustainably.
Why most Belgians use ETFs to invest sustainably
ETFs (exchange-traded funds) are one of the most popular tools for sustainable investing in Belgium. And for good reason.
An ETF is a type of fund that groups together many companies into one single investment. When you buy a sustainable ETF, you’re investing in hundreds (or even thousands) of companies at once, based on environmental, social, and governance (ESG) filters.
Why ETFs work well for sustainable investing:
- Low cost: ETFs usually have much lower fees than traditional mutual funds.
- Diversified: you’re not putting all your eggs in one basket.
- Easy to buy and sell: you can trade ETFs just like shares on the stock market.
- Transparent: most ETFs clearly explain which ESG criteria they follow and what companies they include (or exclude).
For example, here is the historical performance of the MSCI World ESG Screened index:
At Curvo, we build portfolios using sustainable funds that screen out harmful industries and favour companies with strong ESG practices. It’s a simple and effective way for Belgians to invest in a more sustainable future, without needing to pick stocks or become an expert.
Summary
Sustainable investing lets you grow your wealth while supporting companies that care about the planet and society. You don't have to choose between good returns and doing good. The evidence shows sustainable funds often perform just as well as traditional ones, sometimes even better.
Yes, there are challenges like greenwashing and confusing ESG scores. But with the right approach and platform, you can navigate these issues. For most Belgians, sustainable ETFs offer the simplest path to responsible investing. Start by knowing what matters to you, choose low-cost diversified funds, and think long-term. Your future self and the planet will thank you for it.