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Responsible investment: combating preconceived notions

L’investissement responsable : combattre les idées reçues

"Responsible Investment is not concrete"

Responsible investment notably includes thematic funds that offer investments in specific sectors based on investors’ priorities, and, in this way, allows them to support well-defined projects.
Ex: developing renewable energy, facilitating access to water, reducing inequalities, combating exclusion, helping to end world hunger.

"Responsible investment is less profitable than a traditional investment… "

One might be led to believe this, given that a number of companies are excluded during the selection of investments that will make up the sustainable fund.
In reality, several studies show a performance comparable to that of other financial products. The key to performance lies in the selection of companies in which to invest. To this end, decisions are naturally based on financial criteria, but also on non-financial criteria. Experts constantly analyse the responsible practices of companies and select only those among them that show the best prospects.
It can be observed that for a company, adopting a socially responsible strategy has a positive impact on long-term growth. Therefore, taking into account ESG criteria allows investors to identify promising companies with more effective risk management.

 
Did you know?
The Novethic study published in September 2020 demonstrates that sustainable funds were more resilient in the first half of the year, in the face of the Covid-19 crisis, than were other funds.

"Responsible Investment is just a trend…"

RI is not just a trend but a veritable paradigm shift. The growing interest in responsible investment has several sources, including an increased awareness of the importance of ESG criteria, investors’ ethical motivations, recognition of the impact of companies, etc.
Over the past few years, responsible investments have continued to develop in order to meet an increasing demand.

 
Actions of public authorities in France and abroad
In France, governmental initiatives have strengthened this development, with the creation of the Greenfin label in 2015, the SRI public label in 2016 and, more recently, with the PACTE Act, which since 2020 has required life insurance policies to offer at least one SRI-labelled fund.
At the international level, the United Nations’ Principles for Responsible Investment – PRI – encourage investors to take into account environmental, social and governance concerns in their investment and shareholding decisions.

"Responsible investment has no impact"

Impact funds are a component of responsible investment whose investment strategy is to seek to generate a positive social or environmental impact that is concrete, direct and measurable. These funds are a responsible investment option that is gaining ground among investors. They offer objectives and results in terms of reducing greenhouse gas emissions, improved use of resources, gender equality, etc.
 

Find out more:

» Responsible finance - Investing differently

  • What is Responsible Investment (RI)?
  • ESG criteria
  • Fund selection
  • Labels

» Sustainable development, CSR, RI… what’s the connection?

  • The origin of the notion of sustainable development
  • Corporate Social Responsibility
  • Responsible investment (RI)   
  • Declaration of non-financial performance
  • Key figures

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