Sustainable finance: the AMF welcomes the progress of management companies

The Autorité des marchés financiers (AMF) welcomes in a report published on Monday the progress made by management companies in the work of transparency related to responsible investments, a sector experiencing strong growth against a background of climate change.

"Progress in terms of publication has been observed at the level of asset management companies", portfolio management companies, observes the stock market policeman in the conclusions of his third report on extra-financial approaches in collective management.

Compared to the previous 2017 report, the AMF observes that the transparency constraints concerning these investments, to which management companies are subject, have borne fruit.

According to a count which concerned around 500 management companies, the publication obligations were respected at almost 100% against 68% previously.

The regulations require these companies to present in detail on their websites the SRI funds (Socially Responsible Investments) they offer and to provide detailed information on each fund beyond a certain amount.

The stock market policeman, however, noted shortcomings in this process, such as flaws in the presentation of information that hamper the comparison between companies.

Responsible investment takes a prominent place

Responsible investment has taken over the years in the world of finance, against a backdrop of global warming and increasingly restrictive regulations.

At the end of 2019, outstanding responsible investments stood at 1.861 billion euros in France, according to the latest data compiled by the French Association of Financial Management (AFG).

The two key names in responsible finance are SRI and ESG criteria (environmental, social and governance).

Investments take the qualifier of SRI when, in addition to traditional management, they incorporate ESG criteria to reconcile financial performance and sustainable development.

While investing in the green economy could initially be less profitable than a traditional investment, it is often the opposite today.