The Minister of the Economy, Bruno Le Maire, announced on November 7, an overhaul of the ISR label. It’s now official: from March 1, 2024, the eligibility of funds will exclude companies that exploit coal or hydrocarbons.
The reform was expected. The Socially Responsible Investment (SRI) label is getting a new look. This Tuesday, December 12, Bercy put online the new framework which will apply from March 1, 2024 for any new labeling request. Funds already labeled will benefit from a period of one year to adapt to this new framework. They will therefore have until January 1, 2025 to comply.
For funds making their first request for SRI labeling, requests for eligibility can be made, but audits cannot be carried out before the date of entry into application of the framework.
Life insurance: how to invest your savings responsibly
What the new framework provides for
This new framework now includes a climate dimension in its base, excluding companies who exploit coal or unconventional hydrocarbons, as well as those which launch new hydrocarbon (oil or gas) exploration, exploitation or refining projects. The new ISR label should also make it possible to support companies in their transition, by aiming for a progressive alignment of ISR portfolios with the Paris agreement, which aims to limit the rise in 2C temperatures compared to levels prior to the revolution. industrial.
Alongside this climate principle, the ISR label will retain its general character, with reinforced selectivity on other environmental, social and societal criteria, as well as governance, the General Directorate of the Treasury also recalls.
Today, 1,174 funds are SRI-certified, with total assets of 773 billion euros.
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 recalled in November. 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.
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