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SRI funds: how to choose the right responsible investment?
Do you dream of investing while contributing to a better world? Participating in the construction of sustainable housing, supporting projects for gender equality or avoiding investing in companies that are harmful to the environment are principles that you consider important when choosing your financial investments? The good news is that today, solutions for investing your money in responsible projects are flourishing by the day!
Do you want to be sure that your socially responsible investment meets sustainable development criteria? To guide you, Birdee examines the various criteria and labels governing SRI funds!
WHAT IS AN ISR FUND?
An SRI (Socially Responsible Investment) fund is an investment regulated by extra-financial standards known as ESG (Environmental, Social and Governance):
- Environmental: the company must implement measures to reduce greenhouse gas emissions, manage waste properly and undertake projects to prevent environmental risks.
- Social: the company takes measures to promote social dialogue between its employees, respects workers' rights and limits the impact of its products on health and the environment.
- Governance: the Board of Directors is made up of a variety of members responsible for auditing the company's accounts.
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💡 Aware that investing allows us to have a direct impact on our society, Birdee offers sustainable and responsible investment placements with a list of portfolios made up of up to 95% SRI-labeled assets that respect ESG criteria. |
WHAT ARE THE MAIN ISR CRITERIA MODELS?
If you want to invest your money responsibly, there are three main types of SRI funds to choose from:
- Socially responsible funds, whose extra-financial criteria are well respected. These funds place companies in the "very good" category (good waste management practices, respect for the environment, sustainable employment, etc.).
- Ethical exclusion funds reject sectors perceived as harmful to the environment or sustainable development, such as the arms industry, nuclear power or tobacco.
- Shareholder activism enables investors to ask the companies in which they invest to respect a social or environmental policy, for example one that combats greenhouse gas emissions.
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♻️ Birdee guarantees you returns on your investments while promoting concrete actions: selection of players whose practices are respectful of the environment, exclusion of certain harmful sectors (arms trafficking, tobacco, coal, etc.) and support for companies working for sustainable development. |
HOW TO CHOOSE ISR FUNDS FOR SUSTAINABLE INVESTING?
Be in tune with your personal convictions
Before rushing into a "responsible" investment, choose an SRI fund in line with your personal convictions:
- Do you want to promote a fairer, more sustainable economy? Opt for funds that select the "best companies" in terms of environmental, social and governance (ESG) practices, from different sectors (real estate, education or the social economy).
- If you prefer to focus on a specific sector of activity, such as innovation, renewable energies or the fight against global warming, consider a thematic SRI fund.
- And if you wish to exclude a sector of activity that is harmful to the environment, exclusion funds ensure that they do not support certain activities (arms, alcohol, coal, etc.).
Taking account of responsible investment labels
Today, several responsible investment labels are active in France and Europe, enabling you to ensure that the companies in which you invest respect sustainable finance ESG criteria by consulting their CSR (Corporate Social Responsibility) approaches :
- The SRI label, created in 2016 by France's Ministry of the Economy and Finance, provides a guarantee that a fund or ETF is managed responsibly.
- The Towards Sustainability label, created by Febelfin, the Belgian federation of financial institutions. The label covers a range of investments, including energy companies, and encourages companies to work towards sustainable investment.
- The Greenfin label is the first state label dedicated to green finance in France. Fossil fuel and nuclear companies are automatically excluded.
- The Finansol label distinguishes solidarity savings products from other savings products.
- The CIES label (Comité Intersyndical de l'Épargne Salariale) monitors companies' commitments to employee rights and reducing inequalities in the workplace.
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💡 Birdee refers to the two main official labels (SRI and Febelfin) which adopt the most demanding standards on the market to bring you the assurance of sustainable SRI fund management. |
Turn to a portfolio management company (PMC)
Save yourself the tedious task of checking whether the companies in which you want to invest your money actually respect their SRI commitments! To invest with peace of mind in socially responsible funds, use portfolio management companies (such as Birdee 😉 ) to manage your investment funds for you!
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👍 To ensure that the companies in its portfolios comply with ESG regulations, Birdee has chosen to exclude companies active in certain industries such as coal, arms or tobacco. |
🌿 Ready to invest in a cause that's close to your heart? Make a positive gesture for the planet without breaking the bank and invest as little as €50 in an SRI fund with Birdee!
