CRG Breakfasts: Responsible Finance Presentation of the special SRI issue in the RFG
Investment, Socially Responsible Success or Dilution?" Presentation of the special SRI issue published in the RFG
Marginal until the early 2000s, socially responsible investment (SRI) consists of taking into account non-financial criteria, such as the environment and social issues, in the investment evaluation process. The succession of environmental, social and governance (ESG) scandals, the media coverage of which has been widely amplified by social networks, has contributed to converting some of these issues into extra-financial risks. This awareness of this extra-financial risk (El Ghoul et al., SRI or towards a so-called sustainable finance.
Nowadays in finance, the "mainstream" consists of combining financial criteria and ESG criteria. In the French market alone, more than a third of the assets under management, i.e. nearly 1,000 billion euros of assets, incorporate ESG criteria to a greater or lesser extent and more than a tenth correspond to strict SRI management. We have therefore truly emerged from the "niche" and the phenomenon of strong expansion envisaged a decade ago (Crifo and Mottis, 2011) is well underway. This trend is confirmed in several other regions of the world where the integration of environmental or social
This trend is confirmed in several other regions of the world where the integration of environmental or social considerations into investment, placement or lending processes is not only already being adopted by institutional investors, but also increasingly by retail investors.