Novethic has been selected by the French Ministry of the Environment, Energy and Marine Affairs as an auditor of the French Label for the Energy and Ecological Transition. Launched in late 2015, this certification is awarded to investments focused on financing the ecological and energy transition. From the standpoint of investors, this green certification ensures the transparency and quality of the environmental characteristics of the financial products in question, confirmed through an audit by an independent third-party expert.
InfraGreen III invests in equity or quasi equity in infrastructures’ assets which aim at creating savings in the use of natural resources and particularly the production of renewable energies in France and all of the European Economic Area.
RGreen Invest had already been awarded this label for its second fund InfraGreen II in 2016.
Supported by the European Investment Bank (EIB), the fund Eiffel Energy Transition is dedicated to fund the green economy.
In particular, it intends to fill a finance gap. The approval of long-term loans requires time and puts project developers at financial risks as the project development is highly capital-intensive. The fund provides these project developers a short term loan in order to bridge the time until he receives a long-term project funding.
The AXA WF Planet Bonds fund has been launched end of 2015. It is mainly invested in Green Bonds.
The investment approach of AXA IM is a combination of several steps: a qualitative environment assessment for each project, an ESG analysis of the issuer and, eventually, an evaluation of the financial characteristics of the bond.
Sycomore Eco Solutions received the first French Label for the Energy and Ecological Transition label awarded by Novethic on 17th May.
This European equity fund invests in companies whose business model, products, services or production processes are linked to the energy transition. It invests in ecological industries and companies that have already started their transition.
Novethic has been identifying financial products with environmental and/or social value added for investors since 2009. Having created and coordinated its own certification, it is now placing its dual experience as a specialised auditor and as a promoter of the concept of certifying financial products on environmental and social criteria at the service of the French Label for the Energy and Ecological Transition.
Since 2 March 2016, Novethic has been qualified to receive certification applications from equity funds, green bond funds, infrastructure funds and private equity funds and conduct audits consistent with the guidelines of the Ministry of the Environment, Energy and Marine Affairs.
Each criterion in those guidelines will be thoroughly assessed to guarantee the quality and transparency of certified funds relative not only to their management methods but also to their contribution to the energy transition.
Novethic will then promote the certified funds by highlighting their characteristics and certification on its website and at presentations made in France and internationally by the Novethic teams.
To guarantee the environmental qualities of certified funds, the specifications drawn up the Ministry of the Environment, Energy and Marine Affairs stipulate the minimum proportion of green activities of the companies in the portfolio in the form of a detailed sector-based analysis grid.
The specifications also provide for the exclusion of businesses directly involved in the nuclear and fossil fuel sectors and those having seriously violated the principal international standards on human rights and environmental protection.
The certification is awarded for one year.
The French Label for the Energy and Ecological Transition covers a broad range of funds dedicated to financing the green economy, including funds invested in listed equity, private equity, green bond and infrastructure (renewable energy farms, collective transport, etc.).
Funds currently in the creation process may apply providing their investment strategy formally ensures that they can guarantee the respect of the French Label for the Energy and Ecological Transition criteria.
To apply for the French Label for the Energy and Ecological Transition, applicants simply contact the Novethic research centre, which will organise the application process.