As both private and institutional investors increasingly seek to incorporate social and environmental criteria into their financial decisions, Impact Investing has grown considerably in recent years. At the end of 2020, the global market was estimated at USD 715 billion, with growth of around 42% year-on-year.
"Impact Investing" is an American term and was used for the first time in 2007 at a conference organised by the Rockefeller Foundation. Established in 2008, the Global Impact Investing Network (GIIN) helped structure the development of impact investing on an international scale, defining it as "investments made with the intentions generate a positive and measurable social and environmental impact, alongside a financial return". It is based on three main principles:
- Intentionality: the intention to have a positive social or environmental impact
- Additionality: contributions enable beneficiaries to maximise their social or environmental impact
- Measurability: the implementation of social or environmental objectives combined with the monitoring of results.
Impact Investing encourages investment in companies and projects that aim to make positive contributions to social and environmental issues and help achieve the 17 United Nations Sustainable Development Goals (SDGs). The issues it focuses on include sustainable agriculture, access to water, renewable energies, the reduction of inequality and the promotion of gender equality. Impact Investing always involves the production of an impact report, so that the social or environmental impact generated by the investment can be assessed. Financial performance also seems to be strong – according to the GIIN, 90% of impact investments exceeded performance targets.
At the centre of a financial market firmly focused on development and sustainable finance, impact investing is a cornerstone of CFM Indosuez's strategy and commitments, and the solutions it offers its clients. The Bank also implements practical initiatives, such as drawing up its Social Charter, which ensures it is committed to systematically promoting sustainable finance solutions to its clients and partners, and to supporting impact projects with innovative solidarity-based investment offers. To ensure that it is meeting its clients' growing requirements around social and environmental issues, CFM Indosuez has developed a comprehensive range of impact investments on various themes and instruments, including investment funds, structured products, green and social bonds.
In partnership with Amundi*, Europe's leading asset manager, and other specialised asset managers, CFM Indosuez offers a full range of Impact funds:
- Environmental impact: reducing the carbon footprint, fighting global warming, preserving biodiversity, safeguarding our oceans
- Social impact: reducing inequality, promoting social cohesion, providing access to education and housing, fighting hunger.
For clients who are acutely aware of environmental issues and who want to make practical contributions to a fairer transition, we offer "Green Notes" – structured products issued by the Group's investment bank, Credit Agricole CIB. These products make it possible to direct investments very specifically towards financing projects that help protect the environment, such as renewable energy, real estate and green transport. Crédit Agricole CIB is one of the most active banks in the green, social and sustainable bond market. It has won 6 awards, including the 2021 Sustainable Bond of the Year award from International Financing Review (IFR) magazine. Drawing on our ties with this large issuer of Green Bonds, we also offer green and social bonds that are used exclusively to finance environmental and/or social projects or assets.
As part of the development of "blue" finance, dedicated to the preserving the oceans, in 2021 Monaco created an original and innovative initiative, CFM Indosuez "Océano". This initiative is widely acclaimed by the banks clients due to its innovative and solidarity-based approach. Launched by the CFM Indosuez teams in partnership with the Oceanographic Institute and Crédit Agricole CIB, this Green Note donates part of its commission to the Oceanographic Institute for the development of its "Poles" programme.
* Crédit Agricole Group is the majority shareholder of Amundi and Indosuez Group, of which CFM Indosuez is the Monaco subsidiary.
