For five years, the management company CPR Asset Management (CPR AM) has been surveying savers and their advisors on their preferences and practices in terms of sustainable finance. Arnaud Faller, investment director of CPR AM, and Vanessa Cottet, its environmental, social and governance (ESG) manager, describe the expectations of savers for L’Express. The opportunity to dismantle some preconceived ideas and measure the extent of the progress made.
The Express: After much criticism, have savers reconciled with socially responsible investment (SRI)?
Arnaud Faller: Yes. Responsible funds have become financial products like any other and their holding rate is growing regularly. This progression was significant last year: during the last edition of our barometer, 44% of respondents indicated that they had funds qualified as responsible in their savings, compared to 36% in 2022. Savers qualified as autonomous – those who do not are not recommended – are a little late compared to the others. Not having access to a professional advisor, they have a lack of knowledge on the subject which explains this discrepancy.
Vanessa Cottet: The growing adoption of responsible investing is partly linked to regulation. This provides in particular that, from now on, advisors systematically address this subject with their clients. However, these professionals have gained skills and are now much more comfortable recommending this type of fund. Climatic events, which affect many people, also raise awareness. Fires, floods, climate change… Savers are now making more of a connection between what is happening near them and their investment wishes.
What are they looking for in ISR?
AF: Among the themes favored by savers, climate issues come in first position for 43% of respondents. This is clearly the primary area of concern among respondents and this is confirmed year after year. In detail, their choices focus primarily on the fight against climate change, access to water and the preservation of biodiversity, which appears for the first year in the study.
VC: Social themes, such as education (33% of respondents), respect for human rights (31%) or the reduction of inequalities (23%) come later and are more linked to current affairs and more local concerns. More broadly, individuals demand transparency and concrete proof of the usefulness of their investments. They need tangible elements to compare funds.
How can we prove the usefulness of SRI funds?
VC: This involves the publication of very factual and detailed indicators such as the carbon intensity of the portfolio [NDLR : qui mesure les émissions de CO2 rapportées au chiffre d’affaires], water intensity, waste recycling rate, etc. We also publish a detailed impact report by fund every year.
AF: This requires access to quality and consistent data from one company to another in order to be able to aggregate it at the fund level. This is an area in constant progress and the regulations will also help us to improve approaches since from 2025, European companies will gradually have to publish very comprehensive sustainability reports, including standardized data.
An article from the special report “Responsible Investments”, published in L’Express on May 30.