France’s forum for responsible investment, known internationally as SIF, has quit a working group dedicated to reforming the country’s socially responible investment (SRI) label.
This label is currently under review, but ongoing efforts have been criticised by SIF as being “far from” its recommendations.
In a statement, SIF said it would “gladly reassume” its place in the committee if the necessary changes are made.
The label was created in 2016, and a consultation on this update is due to be published next month.
SIF’s recommendations include more significant exclusions, minimum climate thresholds in line with the Paris Agreement, and additional varieties of investment strategies to be included under the label.
In its statement, SIF has described these as “essential for the clarity and credibility of the SRI label.”
The subcommittee is headed up by Michèle Pappalardo, a former senior civil servant and environmental specialist, who was appointed by the Ministry of Economy & Finance.
This body was formed in response to a report by France’s General Inspectorate of Finance (IGF) in March 2021 which challenged the label in its current form. In a review of the label, IGF concluded it was exposed to “an inevitable loss of credibility and relevance…unless it evolves radically”.
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