Novethic has been selected by the French Ministry for the Ecological and Inclusive Transition 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.
Ecofi Agir pour le Climat is a multi-asset fund invested in at least 60% in shares of European companies and up to 26,25% in green bonds issued by governments or companies located in Europe. Since late 2018, its environmental strategy has been focusing on financing the energy and environmental transition through a value selection process that prioritizes issuers within the field of eco-activities.
Launched in 2017, the Lyxor Green Bond (DR) UCITS ETF offers investors exposure to the investment grade green bond market. The fund seeks to replicate the performance of the EUR USD IG Index Solactive Green Bond index, which is composed of green bonds issued by supranational issuers, governments, public authorities, development banks and companies. It was the first ETF to obtain the TEEC label.
PEARL Infrastructure Capital is a newly launched private equity fund. It aims to provide external financing adapted to internal environmental infrastructures of industrial counterparts or municipalities. All invested assets will generate environmental added value in terms of renewable energy, waste recovery and water management.
The HSBC Europe Equity Green Transition fund was launched in 2018. It favors companies whose strategies promote long-term transformation of the energy and environmental model, and more generally promote energy transition. Its portfolio is composed of European equities (medium and large capitalisations) which allow and will allow the decarbonization of the economy.
The Zencap Energy Transition Debt III fund was launched in 2018. With this third senior infrastructure debt fund, ZencapAM wants to highlight its contribution to the financing of the energy transition in Europe. It will mainly participate in the development of renewable energy projects.
The Allianz Green Bond fund was launched in 2015. Its environmental strategy is to invest mainly in the green bonds of companies engaged in a transition towards a less carbon-intensive business model. Allianz GI has developed its own eligibility grid and monitors environmental KPIs according to the projects financed by the green bonds in the portfolio.
Launched in early 2018, BRIDGE IV SENIOR is a Luxembourg based SICAV SIF structure managed by Edmond de Rothschild Asset Management. The fund will be investing with a further focus on Energy and Ecological Transition in all sub sectors of infrastructure in the EU and EA. It is reserved exclusively for professional investors.
The FMET fund (Fonds de Modernisation Ecologique des Transports) aims to build a diversified portfolio of equity investments in companies to finance projects or infrastructure in the low-carbon public transport sector. The targeted amount of the fund's investment portfolio is €200m.
The NN Euro Green Bond fund was launched in March 2016 and intends to address climate change by participating in the transition to more sustainable investments. The strategy aims to ensure that the investments are truly green.
For this purpose NN IP has developed its own in-house eligibility framework to assess the greenness of the bonds and use of proceeds. The fund manager also engages directly with issuers to foster best practices in terms of projects and reporting. The fund is actively managed with a focus on bond selection and performance.
The fund SCOR Infrastructure Loans III is a «Fonds Commun de Titrisation (FCT) » launched in early 2018. It invests in long-term debt aiming to fund infrastructure projects in support of the energy transition (for instance renewable energy, rail transport, energy recovery). The fund is exclusively reserved to professional investors.
The New Energy Investors Fund (NEF) III is a private equity fund managed by Impax Asset Management, a British pioneer in the field of green investments. The fund aims to invest €500m in 10 to 15 renewable energy projects in Europe. The fund is exclusively reserved to professional investors.
The fund CM-CIC Green Bonds, created in June 2017, is intended for a broad customer base keen to take action on improving the quality of the environment.
It provides investors with an access to the rapidly growing green bonds market. CM-CIC AM has defined its own analysis model integrating ESG criteria, to ensure a selection in accordance with the “Green Bonds Principles”.
InfraGreen III invests in equity or quasi equity in renewable energy infrastructures located in France and all of the European Economic Area. InfraGreen III aims at having a positive environmental impact while contributing to the energy transition.
RGreen Invest had already been awarded the TEEC 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.
More specifically, 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.
Humanis Gestion d'Actifs’ HGA Obligations Vertes SRI fund invests in bonds from European local authorities and businesses with strong green credentials.
The fund assesses the environmental impact of its investments, with a particular emphasis on CO2 avoidance and reduction.
On June 28, 2016, RGreen Invest was awarded the TEEC certification for its second InfraGreen II fund, which invests in renewable infrastructure.
Novethic’s auditors found that RGreen Invest was making a positive contribution to climate change and energy and ecological transition objectives.
Sycomore Eco Solutions received the first French Label for the Energy and Ecological Transition (TEEC label), awarded by Novethic on the 17th of May 2016.
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 added value for investors since 2009. After having created and coordinated its own certification, it is now placing its dual experience as a specialized auditor and a promoter of environmental and social certification for financial products 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 for the Ecological and Inclusive Transition.
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 Novethic teams.
To guarantee the environmental qualities of certified funds, the guidelines established by the Ministry for the Ecological and Inclusive Transition stipulate the minimum proportion of green activities that portfolio companies must respect, in the form of a detailed sector-based analysis grid.
The guidelines also specify 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 can simply contact the Novethic research centre, which will organise the application process.