Responsible investment: what will change for savers this summer

Starting August 2, when you push open the door of your banker’s office or any other intermediary that offers investment advice or portfolio management services, expect to be baked. These professionals are already required to interview their clients to determine their risk profile. The latter is based on several characteristics, such as assets, knowledge of financial products, investment horizon, risk appetite … “Before each subscription, our consultants conduct a client survey,” said Letizia Bernier, director of sales and marketing. Real Estate Fund Manager Perial. This is the stage of identifying the saver in order to find out his desire for investment projects to offer appropriate solutions. Starting this summer, distributors of savings products (life insurance, stock savings plan, securities account, funds, etc.) will also need to ask you about your benefits in terms of stable financing.

This new commitment is part of a large-scale regulatory project entrusted to the financial sector. “This new regulation is part of the European agenda aimed at redirecting savings to responsible products,” said Letizia Bernier. And thus direct capital to green activities that contribute to climate neutrality defined by Europe. First of all, savers need to be favorable to investment products that integrate non-financial, environmental, social and good governance criteria (ESG). According to the latest version of the CPR AM responsible investment barometer, 64% of savers surveyed estimate the non-financial impact of their investments at least at the same level as the financial results.

Three questions were asked

But the lyrics go much further than just asking if you want to prefer responsible products. Distributors will need to examine you on three well-defined points, “from the most accurate to the least accurate,” says Thibaut Michelich, director of ESG’s management company Lazard Frères Gestion. First of all, you have to ask what is the minimum share of your investment you want to reconcile with the European taxonomy. This is a very accurate classification of green activities, those that contribute to climate change mitigation and adaptation, pollution control, the transition to a circular economy, biodiversity protection … This approach is very strict, because according to the European Union Commission, these activities account for only 1-2% of the turnover of listed companies. In practice, the demand for taxonomic compliance for all your investments will lead to a concentration of assets on a very limited number of companies and sectors and, therefore, to a high risk.

Limited offer. 2 months for 1 euro without obligation

The second question is broader and concerns the desired share of sustainable investment. The definition this time is much less precise and broader, as it includes not only the environmental but also the social dimension (employment, equality between men and women, respect for workers, etc.). Each management company will have to indicate and justify the share of its stable investment in its products according to a methodology that has not yet been determined. Risk? See the emergence of very different approaches, more or less serious, from one promoter to another. “Over time, we will see a homogenization of the definition of sustainable investment,” says Thibaut Michelich.

Finally, consultants will ask their clients about their willingness not to invest in companies whose activities have a negative impact on the environment. Indeed, by the end of the year, companies will have to report on a number of indicators to measure the impact of their activities on global warming, biodiversity loss … They will have to provide information on 14 indicators. “Fund managers will have to prove that they prefer companies that are the best in these areas,” said Thibaut Michelich. At this stage, it will be impossible to go into details, but in the future, every saver will be able to put forward the most important criteria in his eyes.

Express application

To track analysis and decryption wherever you are

Download the program

Download the program

Proper implementation of this new, relatively complex regulation requires significant education of savers. “One of the challenges will be to promote all technical terms and jargon as much as possible, using simple vocabulary so that it is clear to everyone,” said Letizia Bernier. At the same time, management companies are working to create new products to better meet the expectations that will be identified through this new questionnaire. “We expect an increase in customer requirements,” said Thibaut Mikhelic. Counselors still have a few weeks to consider this topic.



Government law could play an important role in serving the French, Jean-François Cope said here on May 9, 2017 in Paris.Jean-François Copp

Chronicle of Sylvain Fort

Protesters say the election campaign is largely absent, less than two weeks after a warning from UN climate experts and a month before the presidential election.Behind Fort Sylvain

Chronicle of Nicolas Buza

On important issues such as public finance, industrial policy and innovation, the new government's team has remained completely uncertain in recent weeks.Nicolas Buzz

Chronicle of Chloe Moren

As if to find a way out, the French have just ordered the removal of the heart of power that will now be in the National Assembly, reminds our columnist Chloe Moren.Written by Chloe Maureen