Moneyhub utilised Open Finance capabilities to support the creation of Sugi, an app that enables users to check the carbon impact of their investments. Aimed at retail investors, Sugi is the first platform in the UK allowing users to check the carbon impact of their investments and compare with industry benchmarks to help them build a greener portfolio that is in line with their values.
Unlike ESG ratings, which are typically complex and targeted at institutional investors and asset managers, Sugi - which is free to use - shows users the annual carbon impact of each investment in absolute numbers, alongside an industry average and carbon data for similar investments in the market.
The app displays impact data for over 15,000 listed equities - 95% of the listed equities market - over 3,500 exchange traded funds (ETFs) and certain actively managed funds, with plans to introduce a wider range of funds – and more environmental data – in the coming months.
Users link their investment portfolios, which can include ISAs and SIPPs, to Sugi via Moneyhub’s Open Finance API, enabling them to access personalised impact data. Moneyhub, a market-leading Open Finance data, intelligence and payments platform, connects to more than 80 online investment platforms, covering the majority of the UK market.
The retail investment landscape
Demand for sustainable investing has soared, particularly in the last eighteen months. Most of the uptake, however, has been from institutional investors and asset managers. Everyday DIY investors are missing out. For most people, the industry is too confusing and too complex, and they can’t access the information they need to make greener decisions.
Josh Gregory spent a decade in conservation finance and became increasingly frustrated at the lack of options for retail investors. He set up Sugi to change that.
‘While COVID-19 has accelerated awareness and demand of green investing, it’s hard for retail investors to take action. Research shows that over 75% of UK investors want their investments to have a positive impact (Blackrock, People and Money report 2020); however, only a small proportion of people actually follow through with it.
‘The reasons for this vary. Sustainable investing is full of jargon and investors are rightly concerned about ‘greenwashing’. Another problem is ESG ratings: they’re meant to simplify complex issues but are themselves very confusing – even for experienced retail investors. All of this ultimately stops more people getting involved.’ Josh Gregory, CEO & Founder, Sugi
What is the aim of the app?
The Sugi app was developed to enable retail investors to check the carbon impact of their investments and compare with industry benchmarks, to help them build a greener portfolio in line with their values. Unlike ESG ratings, which are typically complex and targeted at institutional investors and asset managers, the plan for Sugi was to show users the annual carbon impact of each investment in absolute numbers, alongside an industry average, and carbon data for similar investments in the market.
The technology challenge
To provide an investor with personalised carbon impact metrics, Sugi needed to link and aggregate all of their investments within the app, regardless of the underlying investment platform or product provider. Traditional Open Banking partners do not provide access to investment accounts, so Sugi needed a technology partner that used true Open Finance to deliver its proposition. So, Sugi approached Moneyhub to take advantage of its Open Finance platform, which connects to more than 80 online investment platforms - 95% of the UK market.
Bringing the app to life
Sugi teamed up with Open Finance partner Moneyhub to make their vision become a reality. Moneyhub’s powerful Open Finance Data & Intelligence API meant that retail investors could seamlessly connect their portfolios - including ISAs, SIPPs, and trading accounts - to the Sugi app. Once connected, investors can view the environmental impact of their investments, as well as comparisons against industry benchmarks and similar investments in the market.
The end result
Sugi has become the UK's first and only app to show retail investors the carbon impact of their investments, compare results across the market and help users build greener portfolios. The app displays impact data for over 15,000 listed equities - 95% of the listed equities market - and over 3,500 exchange traded funds (ETFs) and certain actively managed funds.
‘I really like the Sugi app. The interface is so clear and helps me understand my investments in a whole new way.’
Owen (SIPP, Hargreaves Lansdown)
‘Sugi is a much needed, ready-to-use app. Now I can see how green my investments really are… or not!’
Flo (ISA, Nutmeg)
What could the future hold?
The implications for future green developments are endless - indeed, Sugi has plans to introduce a wider range of funds and more environmental data in the coming months - but the opportunities spread even further. Open Finance has the ability to unlock, aggregate and interpret the entire world of financial data - meaning the possibilities are endless.
The only significant limitation for Open Finance is the lack of legislation in place (compared to Open Banking) to ensure organisations open up their data. Moneyhub is championing change in this area, and is actively involved in TISA’s Open Savings, Investments and Pensions (OSIP) Steering Group, aiming to facilitate better data-sharing among firms and the Pensions Dashboards Steering Group.
About Moneyhub
Moneyhub is the leading Open Banking and Open Finance platform that uses the power of data, intelligence and payments to enhance the lifetime financial wellness of people, their communities and their businesses. Moneyhub’s APIs and white label solutions power businesses - both within and outside financial services. Find out more at www.moneyhubenterprise.com or contact hello@moneyhub.com
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