Clim8 is an investment app that aims to combat climate change by helping its users invest in companies it considers sustainable. You can choose a portfolio that matches your risk appetite and aligns with your values. Find out what we thought of Clim8, its fees and some pros and cons of this sustainable investing platform.
What is Clim8?
Clim8 is a type of investment platform known as a “robo-advisor”, which means it learns a little about you and invests on your behalf, based on how you feel about risk — with one key addition: it’s dedicated to investing only in sustainable investments.
Clim8 uses the UN Paris Climate Agreement as a benchmark to measure sustainability. It focuses on companies that have superior revenue exposure to or are involved in the supply chain of clean energy, clean technology, sustainable food, smart mobility and recycling. It’s a relatively new player on the scene, but so far it has received good reviews. Clim8 allows you to choose a risk profile according to your personal investment risk appetite and you can get started with as little as £25.
Clim8 features
Clim8’s features include:
- Clim8 trades twice a week. Any payments received after 5pm on these days will be executed the following trading day.
- You can choose a risk profile based on the amount of risk you personally feel comfortable with.
- Clim8 has all-in fees of around 1%.
- The minimum deposit is £25
- Personal information protected with bank level encryption
- Clim8 is protected by the Financial Services Compensation Scheme (FSCS) up to a limit of £85,000, so you’ll be protected for up to £85,000 if the company declares bankruptcy.
There is no desktop app yet, but it’s planning on launching one soon.
Clim8 portfolios
Clim8 offers three different risk profiles: cautious, balanced and adventurous. The different profiles all contain different proportions of equities, fixed income and cash. Fixed income and cash tend to offer more certainty, while equities have the potential for higher returns but at a higher risk. It’s worth giving your risk appetite some thought, because once you’ve chosen your risk profile you can’t change it without opening a new account.
| Portfolio | Equity | Fixed income | Cash |
|---|---|---|---|
| Cautious | 32.5% | 57.5% | 10% |
| Balanced | 59% | 36% | 5% |
| Adventurous | 77.5% | 20% | 2.5% |
- Cautious
- Balanced
- Adventurous
What makes up a portfolio?
There are three main things that make up your portfolio: equities, fixed income and cash
Equities: This is typically company shares
Fixed income: This is typically sovereign, corporate and green bonds, which have a fixed income
Cash: Some money is held aside and not invested. It might lose out to inflation, but won’t lose more value than that.
Clim8 accounts
At the moment Clim8 only offers a stocks and shares individual savings account (ISA) and general investment account, but it is looking into offering other options as well. The app lets you have up to 3 general investment accounts and 1 ISA.
If your appetite for risk varies depending on the amount invested, you can open one general investment account for each risk type. You can open an account with Clim8 if you meet its eligibility criteria.
What is Clim8’s eligibility criteria?
To sign up for Clim8, you must be:
- 18 or older
- A UK tax resident.
Every tax year the government lets you invest up to a certain amount without paying any tax on any profits you make if you hold it in an individual savings account (ISA). In the 2023/2024 tax year the allowance is £20,000, which means you can invest up to this much in an ISA without having to pay capital gains tax.
Clim8 general investment account
If you’ve used up your annual ISA allowance, you can also open a Clim8 general investment account. With this account you may need to pay capital gains tax on any profits you make over £6,000 in each tax year, but there is no limit on how much you can invest.
The features and fees of this account are the same as the ISA.
How much does Clim8 cost?
Clim8’s app is free to install and set up. All you need to do is download it from the App Store or Google Play and sign up for an account, which can be done in minutes.
Clim8 charges a 0.6% annual management fee, which is calculated and charged monthly in arrears. The average portfolio cost is between 0.35% and 0.5% per year, depending on what you’re invested in. It doesn’t charge any fees for withdrawals or for transferring to another provider.
Depositing and withdrawing funds
Clim8 has an “easy bank transfer” feature that uses open banking to let you deposit funds into your account. You can also manually transfer funds with your bank account. Depending on your bank and your method of payment, it will take on average 1 working day for your deposit to appear in your account.
Clim8 does not charge any fees to withdraw money from your account, but it has a minimum withdrawal amount of £25. Withdrawals can take up to 19 working days. You may gain a return or a loss if the value of your investment changes in those days before the trade is executed and your funds are withdrawn.
Clim8 customer reviews
Clim8 has earned 4.7 stars on both the App Store and Google Play. Reviewers praise the app’s mission, design, and ease of use. Those who did have questions or issues typically said that the customer service team was friendly and efficient. Suggestions for improvements mainly center around adding more functionality, adding different types of accounts and providing more information about the portfolio performance. In general, sentiment is positive, with most reviewers looking forward to seeing the app develop more as time goes on.
These reviews were last updated in August 2021.
What is Clim8 working on?
Clim8 has shown that it is responsive to the suggestions of its users.It has made its roadmap publicly available, so you can see the team’s to-do list for yourself. According to the roadmap, Clim8 is actively looking into adding features that reviewers have asked for, such as finding a way to give you more insight into your portfolio and its performance. It also plans to make recurring deposits possible, so unlike those houseplants you forget to water, your investments can stay green without you having to remember anything.
Pros and Cons of Clim8
Pros
- Ethical mission statement
- Easy to use
- Good customer service
- Smooth app design
- Free to set up, no withdrawal fee and no transfer fee
- Lets you use your annual ISA allowance
Cons
- Once you’ve chosen an account’s risk type, you can’t change it
- You can’t buy individual stocks
- No desktop app
- Not much data to give you insight into investing or your portfolio’s performance
Our verdict: Is Clim8 any good?
Climate change is looming larger and larger in many people’s minds. Clim8 offers an opportunity to invest in stocks that take that concern seriously. The app is still relatively new, so it does not offer as many options or account types as some other investing platforms. It also doesn’t offer much information to help you understand your portfolio’s performance or investing as a whole. Since Clim8 also limits itself to investing in sustainable stocks, you might miss out on opportunities in other sectors.
That said, the features it does offer are easy to use, and its customer service team is friendly and efficient if you do run into any issues. You can begin investing with as little £25, and the app’s design is sleek and straight-forward. Overall, Clim8 is worth keeping an eye on if you want to grow your portfolio without growing the hole in the ozone layer.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Frequently asked questions
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Duncan Grierson founded Clim8 in 2019.
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No, Clim8 does not offer any financial advice. You are responsible for your own investment decisions.
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You will not need to pay tax on the investments you make in your investment ISA, which can be up to £20,000 per year. You may need to pay tax on investments made in other accounts.
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Clim8 is available on both Android and Apple devices, and can be found on either Google Play or the App Store, respectively.
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An investment ISA is also known as a stocks and shares ISA. You can invest up to £20,000 per year in this account without needing to pay tax on any of the profits you may make.
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No, Clim8 does not have a desktop app. However, it is available on mobile for both Android and Apple.
