Hello learners. I am Fenrir. Today we are stepping into the frontier of finance. We are looking at new technologies new powers and new responsibilities. Let us start with the digital revolution. You have likely heard of crypto assets or cryptocurrencies. These are digital assets that use technology like blockchain to record transactions. It is important to understand that this is not just about speculation. There are real benefits to this technology. Crypto assets can enable faster cheaper cross border payments and create new ways to organize financial systems without a middleman. However you must be aware that there are different qualities of projects. Some cryptocurrencies have been around for a long time and use established secure technologies. Others are brand new experimental or simply memes. To access crypto you usually use a crypto exchange platform. But before you buy you must understand the underlying technology. Does this project solve a real problem? Is the technology secure? In the European Union we have a regulation called MiCA Markets in Crypto Assets which brings clarity to this space but you must still do your homework. Use reputable platforms that follow EU regulations and learn how to secure your digital wallet with private keys.The innovation is exciting Fenrir but because the industry is newer the risks are different. We must be aware of risks related to using crypto assets for payment or investment purposes. While some projects build value over time the market is generally highly volatile. This means values can swing wildly based on news or trends. You need to be skeptical. Because the technology is complex it can attract bad actors. Be aware that scams related to crypto assets occur frequently often trying to attract potential victims by promising high expected returns. However not every new project is a scam. Many are legitimate startups building the future of the web. The key is your ability to research. Do not look for guaranteed huge profits look for utility and community. If you choose to participate understand that you are navigating a frontier. It offers opportunity but it requires a higher level of caution and technical understanding than a traditional bank account.Moving from the new digital frontier to the established world of business let us talk about your power as an owner. When you buy a share you are not just buying a piece of paper or a digital number. You are buying a piece of a company. You become a shareholder. This gives you rights. Aware of the rights and benefits associated to holding a share of a company you should know that the most important right is the right to vote. Shareholders can influence the decisions of a company including on its sustainability performance. Every year companies hold an Annual General Meeting. At this meeting shareholders vote on big decisions like who runs the company or how much the directors get paid. You might think your one vote does not matter but you are aware of the possibility and requirements to participate in collective shareholder actions. This is where many small investors group together to have a louder voice. There are digital tools available today that make it easy to participate in these meetings online. If relevant you can take steps to engage with companies during annual general shareholder meetings or through collective actions in line with your own sustainability and other preferences. In the EU shareholder rights are strongly protected. You are an owner. Act like one.Using that voice is crucial because we want to build a better world. This brings us to Sustainable Investment. Aware about existing sustainable investment products on the market you can choose to put your money where your values are. But what does sustainable mean? You need to be aware about the different dimensions of sustainability. We call this ESG. E stands for Environment. How does the company treat the planet? S stands for Social. How do they treat their workers and communities? G stands for Governance. Are the bosses honest and transparent? Aware that different investment strategies can be used to invest according to your own environmental social and corporate governance preferences you have two main choices. The first is Divestment. This means avoiding investments in certain sectors or companies. For example you might refuse to buy shares in a tobacco company or a fossil fuel company. You simply walk away. The second strategy is Engagement. This is when you engage with certain companies to make them change their activities. You buy the stock and use your vote to force them to become greener. Picks an investment strategy in terms of divestment or engagement or a combination of both according to your personal situation and preferences.That choice requires knowledge. You cannot just guess. You must look for investment products in line with your own sustainability preferences. This means you have to research. Researches and compares sustainability attributes of potential saving and investment products. Do not just read the title of the fund. Look deeper. Motivated to research the products one already holds or plans to invest in to ensure that they meet personal sustainability preferences. And do not do this alone. If you have a financial advisor use them. Asks follow up questions to an advisor on sustainability related aspects of investment products. Ask them specifically how does this fund impact the climate? What are the social risks? Confident to ask questions about the extent to which an investment product meets sustainability criteria. If they cannot answer you that is a red flag. You should be confident to ask for more information when this is not readily available. Demand transparency. It is your money and you have the right to know what it is doing in the world.Transparency is key because sustainability is not just about feelings it is about financial risk. Understands that sustainability factors and governmental climate related policies may have an impact on the level of risk and return of investments. Imagine a company that pollutes heavily. If the government introduces a new carbon tax that company will lose a lot of money. Aware that environmental social or governance risks may negatively affect the financial performance of a company. A company with bad governance might face corruption scandals and fines. A company with bad social practices might face strikes and lawsuits. These are real financial risks. To find this out you need to look at Disclosure. Aware of disclosure requirements for companies funds and other financial products and services including sustainability related disclosure requirements. In the European Union companies are required by law such as the SFDR Sustainable Finance Disclosure Regulation to publish these documents. Knows where to access these disclosure documents usually on their corporate websites. Understands disclosure documents about companies funds and other financial products and services. You must be able to research disclosed information related to a financial product including that which covers sustainability aspects. Read the fine print.Once you have read the documents you can make a move. Able to make informed decisions in line with your risk profile sustainability preferences and other preferences based on the disclosure information provided. Do not just trust the marketing brochure. Trust the legal documents. And finally hold them accountable. Holds funds accountable for their engagement commitments for instance by checking their voting records at annual general shareholder meetings. If a fund says they care about the environment but they vote against climate proposals at the shareholder meeting they are not being honest. You can check these records. Knows about sources of information to monitor the performance and the sustainability record of a fund. Use independent ratings and reports.It is about taking responsibility. Whether it is the digital frontier of crypto or the ethical frontier of green investing you need to stay informed and active.Be skeptical of scams but open to innovation. Use your rights as an owner to shape the future.Check the risks. Read the disclosures. And make sure your money aligns with your values.You have the tools. Now go shape your financial future. Goodbye!
