If financial markets rhyme with profit prospects, ethical and environmental considerations are now taking more importance in the investment choices of investors. On their scale, small savers can use their money to support virtuous businesses and projects. But you still have to know what we are talking about.
To each his objectives
In general, sustainable finance refers to all practices which, in addition to financial criteria, also integrate extra-financial aspects into their approach, notably environmental and societal. Within this very broad offer, there are different categories of investments. "Green investment targets the financing of the energy transition by allocating in particular the money raised to greenhouse gas reduction initiatives", explains Hans Willert, partner in charge of the insurance and finance sector at Magellan Partners . And the specialist specifies that "Green bonds, green bonds issued by companies and institutions, are the best known". In 2019, France was also champion in this area, both in terms of issuance and placement.
Socially responsible investment takes into account environmental, social and governance criteria (known as ESG criteria). In broad terms, it is a question of reconciling financial performance with respect for employees, social dialogue, risk prevention and ethical standards (anti-corruption, regulatory compliance, etc.), while practicing full transparency. As for solidarity finance, it is specifically directed towards supporting socially and environmentally useful initiatives (poor housing, fight against unemployment, etc.).
Choose the destination of your funds
To embark on the adventure, savers have several types of investments at their disposal. Launched in the 1980s and reformed several times since, the Livret de développement durable et solidaire (LDDS) is undoubtedly the oldest device. This regulated savings product, the money of which is available at all times, is capped at 12,000 euros and intended to finance SMEs, energy saving works, social and solidarity enterprises or even social housing. Flat: his rate of pay fell to 0.50% in February 2020.
According to Hans Willert, “life insurance is today the most important collector support in terms of sustainable finance. In this way, individuals can choose to invest directly in Green Bonds or in collective investment schemes of the Sicav or FCP type, selected according to environmental, societal or solidarity criteria according to their wishes. Before committing, you must therefore carefully read the documentation provided in order to prioritize this or that fund in your life insurance portfolio. In all cases, the expert warns: “sustainable investment must be conceived over the long term. Money must be placed for at least ten years to be financially successful. But if you want to build a nest egg for your retirement while helping to clean up the planet, this is a wise investment that will bring you an overall performance superior to other products over time. "
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Labels to find your way
According to the certification agency Novethic, the number of sustainable funds has almost doubled in one year to reach 704 products accessible to French savers at the end of 2019, all for an outstanding amount of 278 billion euros. On the other hand, the marketing offer remains quite confused. To find your way around, you can trust the SRI and Greenfin labels, both created by the French State. The first requires respecting the criteria of socially responsible investment and was allocated to 263 funds at the end of 2019. The second, formerly known as the Energy and Ecological Transition for Climate label, targets the fight against climate change and concerns only 18 funds . Other private initiatives help guide consumers, such as the Finansol label, which selects solidarity products, or the CIES label issued by the Inter-union Committee for Employee Savings, which attests that employee savings funds incorporate ESG criteria. in their management.
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- Solidarity
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