Why a membership with Prokon is the perfect 'Impact Investment'.
More and more people are placing importance on sustainability when it comes to investment. They want to know: What impact does my investment have? Where can I find a real green return? Who is actually engaging in green washing? This form of responsible investing is known as "Impact Investment". "Impact" roughly translates to "effect" or "impact-oriented". In addition to a financial return, a measurable social or environmental return is also sought. Therefore, investors pay particular attention to the so-called ESG criteria (Environment, Social, Governance).
The demand for such investments is rising rapidly: According to studies by the Federal Initiative Impact Investing and the Bertelsmann Foundation, the market volume of impact-oriented ESG investments in Germany was €12.35 billion in 2022. For comparison: Ten years earlier, in 2012, it was only €24 million - a five-hundredth.
Among the most common Impact Investments are funds or bonds, the composition of which is based on strict sustainability criteria. Banks in particular promote green investment funds, which they also like to sell to customers in the form of savings plans. In principle, there is nothing wrong with these products - but the level of involvement of investors is very limited. There is the potential for much greater impact: By directly participating in an energy cooperative like Prokon, investors actively contribute to shaping the energy transition. They also receive transparent information and can help determine the path of their cooperative. "The difference to a 'classic' investment is that I have a much better feeling because my money is not used for things I don't approve of," says Prokon member Sabrina Reuther.
So far, 40,000 people have joined the shared project - the expansion of renewable energies in the form of wind and solar power. However, the energy transition is a continuous process and Prokon has set ambitious growth targets: "By the year 2030, we aim to double our green electricity production volumes," explains Prokon board member Henning von Stechow. This would amount to around 2.4 gigawatt hours by 2023. That is enough to supply more than 700,000 households with green electricity - and would have a significant climate protection effect. Consequently, up to 780,000 tonnes less CO2 emissions would be generated annually.
To achieve this, Prokon needs around €25 million every year - enough equity to realize future wind farm projects like the planned facility in Friedersdorf. This sum could be quickly raised with united (financial) forces. To achieve this, each cooperative member would simply need to subscribe to ten new business shares at €50 each.
For comparison: Even common green bank savings plans typically have a minimum contribution of €50 per month - equating to €600 per year.
Members can also bring relatives or friends 'on board' by giving them a Prokon membership as a gift (see box). But it can also work the other way around: when a Prokon member was asked by his wife what his family could give him for his 60th birthday, he replied: 'Tell them that they would make me very happy if they become cooperative members in the largest German energy cooperative like me.' The jubilee also had a convincing explanation for his wish. 'Prokon wants to grow and with fresh cooperative capital plan, build and operate new wind energy plants. This way, everyone who wants to give me something will become members of the climate scientific transformation of the energy system to 100 percent renewable energies.'
Cooperative shares as icing on the cake: For his 60th birthday, the celebrant wished for his relatives to become members of Prokon.
The documented anecdote impressively demonstrates how strongly Prokon members identify with the cooperative and have internalised the impact investment concept. An investment that has also yielded attractive returns: "Our dividend has averaged around five percent over the past five business years," said Prokon board member von Stechow. "We continue to aim for a return target of between three and five percent."
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