VERIFY THAT THE FUND IS ELIGIBLE FOR THE SRI LABEL

The fund submits its application to one of the certification bodies along with information regarding the nature and composition of the portfolio.

On that basis, an initial analysis is conducted to verify whether the SRI label eligibility criteria are met. If they are, the application is admissible and the fund can move to the second step.

For further information on eligibility criteria, please refer to section I of Annex II of the order of 8 January 2016.

VERIFY THAT THE FUND MEETS THE LABELLING CRITERIA

To obtain the SRI label, the fund must meet a set of criteria broken down into six topics defined by order.

To ensure that it does, the certification body audits the fund using various methods:
– analysis of the regulatory documents, portfolio statement and fund management report
– interviews with the fund managers to review certain matters in depth and request more information.

The aim of this audit is to determine whether the fund meets the labelling criteria described in section II of Annex II of the order of 8 January 2016.

These criteria are grouped
into six topics:

– the general (financial and ESG) objectives of the fund. This entails verifying that these objectives are clearly defined and described to investors and taken into account when formulating the fund’s investment policy
– the ESG criteria analysis and rating methodology used by the companies in which the fund invests
– the inclusion of ESG criteria during the portfolio’s development and existence
– the ESG engagement policy with the companies in which the fund invests (voting and dialogue)
– fund management transparency
– measurement of the positive impacts of ESG management on the development of a sustainable economy

Once the audit is completed, the certification body prepares an audit report with its conclusions and comments on potential failures to meet the labelling criteria. The decision to award the SRI label is based on this report.

AWARD OF THE SRI LABEL AND INCLUSION ON AN OFFICIAL FINANCE MINISTRY LIST

The decision to award the SRI label is taken independently by the certification body based on the audit report.
The SRI label is then awarded for a renewable three-year period. During this three-year period, interim audits are scheduled to verify that the fund fully complies with the requirements of the label.
The certification body informs the Finance Ministry about labelling.

FOR FURTHER INFORMATION

decree n°2016-10 of 8 January 2016 regarding the “socially responsible investment” label
order of 8 January 2016 and its two annexes:
annexe 1: label audit and monitoring plan
annexe 2: terms of reference of the label