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Socially Responsible Investment (SRI), what are we talking about ?

SRI in France

Responsible Investment includes:

  • SRI (Socially Responsible Investment) funds: "SRI is an investment which aims to reconcile economic performance with social and environmental impact by funding companies and public institutions that contribute to sustainable development regardless of their business sector. By influencing governance and corporate behaviour, SRI contributes to a responsible economy." (AFG-FIR definition, 2013);
  • Funds that adopt other ESG (environmental, social and governance) approaches, such as thematic ESG funds, ESG integration funds, exclusion funds, engagement funds, solidarity funds and impact investing funds.
What is SRI?

What is SRI?

According to surveys published by the AFG (Association Française de Gestion - French asset management association), the SRI management market accounted for approximately 13% of the third-party asset management market at end-2019, having grown very significantly (+76% in 3 years). If we also include the other ESG approaches, the percentage increases to 44%.

In France, the “best-in-class” approach (use of selection criteria to identify companies with the best ESG practices in their sector) is the most popular, ahead of the “best-in-universe” approach (covering all business sectors combined), the “best effort” approach (to select companies with the most improved practices) or approaches based on thematic environmental, social or governance criteria.

SRI in Europe

According to the latest SRI study by Eurosif (2018 European SRI Study), only a small minority of European investors (around 3%) adopt a best-in-class approach.

Outside France, responsible investors tend to use approaches based on exclusions, either of certain industries (e.g. controversial weapons, the alcohol sector, etc.) or controversial practices (standard selection processes based on exclusion criteria relating to practices such as corruption, discrimination, violations of basic rights, etc.).

Videos

L'ERAFP et l'ISR

Cette vidéo pédagogique revient sur les actions de l'ERAFP en matière d'ISR.

ERAFP and the climate

The French Public Service Additional Pension Scheme (ERAFP) wanted to illustrate, through a fun and educational video, how it works to invest, measure, engage and communicate around this major axis that is the energy transition.