SRI-labelled investment solutions: how to find your way around?
The content of this article presents solutions designed exclusively for SGPB France's clients.
"Sustainable", "responsible", "green"… Sustainable investment solutions are developing. But what do these terms really mean? To help investors see more clearly and invest with confidence in solutions with real transformative power, several European countries have developed standards and labels dedicated to socially responsible investments.
Overview of European Socially Responsible Investment (SRI) labels
Europe is particularly advanced in sustainable finance (investments that integrate, beyond financial criteria, extra-financial criteria based on the Environment, Social and Governance (ESG) pillars). It is even considering the creation of an Ecolabel for financial products. Among European countries, France is a leader in this field with two labels: the SRI label of the French State, carried by the Ministry of Economy and Finance, and the Green Fin label, dedicated to green finance, carried by the Ministry of Ecological Transition. In Belgium there is also the Towards Sustainability label, in Luxembourg the LuxFLAG label, in Germany the FNG-SIEGEL label, etc. The specifications of these labels are demanding and often audited by an independent third party, allowing investors to choose quality products with confidence.
The United Nations Principles for Responsible Investment: promoting Responsible Investment
Financial institutions that manage their clients' assets, through funds or mandates, can sign the United Nations Principles of Responsible Investment, commonly known as the UN PRI. The UN PRI were first specified in 2005 and are not a label, but are used to establish a rating of responsible investors. The signatories commit themselves to strengthen their fiduciary responsibility through several actions:
integrating ESG issues into their decision-making and investment analysis processes;
being active shareholders on ESG issues vis-à-vis the companies in which they invest and by asking them for more transparency on these issues;
encourage the adoption of responsible investment and cooperate on these issues;
report on progress made in the field of responsible investment.
SRI labels granted to three new Societe Generale Private Banking France investment solutions
Societe Generale Private Banking offers a wide range of sustainable investment solutions. Among these solutions, three emblematic collective funds of our asset management company SG29 Haussmann, a signatory of the UN PRI, have just been awarded the SRI Label by the French government: 29 Haussmann Sélection Monde (fund invested in global equities), 29 Haussmann Euro Rendement (prudent profile asset management fund), and 29 Haussmann Equilibre (balanced profile asset management fund). In November 2019, the 29 Haussmann Sélection Europe fund, one of SG 29 Haussmann's flagship equity funds, had already obtained this SRI Label.
These new labels mark an important step forward for SG 29 Haussmann, since they increase the share of assets managed by the company adopting an SRI management approach to more than a third. This allows us to reaffirm our desire to accompany our French clients towards greater sustainability and to accelerate our transition towards more responsible finance.
The labeling of a fund adopting an SRI approach is structuring both in terms of management philosophy and value analysis. For all the funds with the French SRI Label, SG29 Haussmann's investment decisions are based on a 360"approach, combining both fundamental and extra-financial analysis of companies by taking ESG criteria into account. We believe that this is an essential step in acting in the interest of our clients in a transparent and rigorous manner.
To help you get a better understanding of SRI, we invite you to listen to our series of podcasts "Understanding Responsible Investment" (link), available on Sportify and Apple Podcasts. And to test your knowledge and determine your preferences in terms of responsible investment, we invite you to take the "My Sustainable Future" test, the results of which you can share with your private banker, if you wish.
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