The Minister of the Economy, Bruno Le Maire, announced this Tuesday, November 7, a reform of the ISR label which will come into force on March 1, 2024. The eligibility of funds will now exclude companies that exploit coal or hydrocarbons.
The reform was expected. The Socially Responsible Investment (SRI) label is getting a new look. In a press release published this Tuesday, November 7, Bruno Le Maire announced a revamp of the label. This measure will come into force on 1 March 2024 for new labeled funds. Concerning funds already labeled SRI, the government grants a one-year transition period for the funds to adapt.
The criteria for the ISR label, which have not been significantly revised since 2016, must be reviewed to meet the higher expectations of investors and the scale of the collective challenges we face, particularly in the fight against climate change, underlines Bercy.
From now on, the eligibility of funds will exclude companies that exploit coal or hydrocarbons unconventional, as well as those which launch new hydrocarbon (oil or gas) exploration, exploitation or refining projects. Furthermore, a transition plan aligned with the Paris Agreement will be required.
Bercy also specified that a group which had old conventional installations and which invested in renewable energies would still be eligible. If and only if it has no new conventional or unconventional hydrocarbon projects.
The ISR label was in France the first State label allowing the general public to choose savings vehicles that integrate environmental, social and governance principles into their management, Bercy recalls. ISR-labelled funds are systematically referenced in life insurance units of account and in retirement savings plans. Today, there are 1,174 funds that are SRI-certified, with total assets of 773 billion euros.
The benchmark expected at the end of November
Questioned by Moneyvox, Grégoire Coust, general director of the Forum for Responsible Investment (FIR) affirmed that this reform takes into account the expectations of savers with regard to hydrocarbons and new exploitation projects. Large groups like TotalEnergies or other oil companies will no longer be able to be present in funds eligible for the ISR label.
The new guidelines will be published by the end of November. For the moment, we are talking about the outlines, we will still have to wait for the definitive specifications, adds Grégoire Coust who regrets that the choice of a graduated label was not taken into account. We were very much in favor of a graduated label which took into account other criteria than those taken into account today, in particular that of impact, but this evolution of the ISR label is good news, specified the general director. of the FIR.
Life insurance: how to invest your savings responsibly
2023-11-07 09:36:17
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