‍Responsible Finance from A to Z (Part 2/3)

Biodiversity

Larousse defines biodiversity as “the variety and variability of all living organisms. This includes genetic variability within species and populations, the variability of species and their life forms, the diversity of associated species complexes and their interactions, and the ecological processes they influence or participate in.”

So why talk about biodiversity in an article on green finance? Simply because today’s financial actors want to integrate biodiversity-related indicators into their extra-financial scoring. They aim to engage in environmental protection while providing real added value compared to those who ignore it.

Corporate Sustainability Reporting Directive (CSRD)

The CSRD is a European Union directive. What is its purpose? It improves the transparency and comparability of information companies provide about their sustainability performance. Implemented in 2021, it ensures that the information shared by companies is reliable, comparable, and useful for investors, stakeholders, and the public.

ESG Criteria

If you’re already interested in green finance, you’re probably familiar with ESG criteria, which form a cornerstone of this approach. ESG (Environmental, Social, and Governance) highlights the key aspects to consider when promoting sustainable business strategies.

• Environmental criteria focus on the impact of a company’s activities to ensure they contribute to ecological and energy transition.
• Social criteria evaluate how a company manages relationships with employees and other stakeholders.
• Governance criteria examine how a company is directed, managed, and controlled.

European Securities and Markets Authority (ESMA)

Also known in French as Autorité Européenne des Marchés Financiers (AEMF), ESMA is an independent European supervisory agency. Its role is to enhance investor protection and ensure the harmonization, stability, and proper functioning of financial markets in the European Union over the short, medium, and long term.

Green Finance

Green finance includes all financial practices that promote long-term societal interests. It actively encourages ecological transition by supporting companies and projects with a positive environmental impact—but not only! Green finance also supports initiatives that combat social exclusion and promote solidarity within society. Moreover, it aims to foster socially responsible investments.

Investment Funds

An investment fund is a financial vehicle that allows a group of investors to pool their money to invest in various assets, including stocks, bonds, real estate, and both listed and unlisted assets (“private equity” and “private debt”).

Managed by an asset management company, these funds follow a specific investment strategy. Also known as UCITS (Undertakings for Collective Investment in Transferable Securities), including mutual funds (FCP) and open-ended investment companies (SICAV), they provide investors with diversification and access to assets otherwise difficult to acquire. Each fund type has its own characteristics and investment objectives, sometimes offering tax advantages.

Intergovernmental Panel on Climate Change (IPCC)

Created in 1988, the IPCC’s primary mission is to provide detailed reports on the scientific, technical, and socio-economic knowledge of climate change, its potential impacts, and mitigation strategies. For over 30 years, it has informed international climate negotiations and environmental policies. Its main goal is, of course, to mitigate climate change and adapt to its effects.

→ The latest IPCC report highlights photovoltaic and wind energy development among the most effective solutions. Projects like these are offered on our green finance platform!

Impact Investing

So what does impact investing mean? It’s an investment approach that seeks to generate a positive social or environmental impact alongside a financial return. By combining financial profitability with measurable social or environmental benefits, it promotes a more balanced and sustainable development process for investment.

To be continued…

While you wait for the final part of this green finance dictionary, we recommend visiting our crowdfunding platform dedicated to the energy transition! If you’re interested, don’t wait—schedule a meeting with our Investor Relations team!

If you want, I can also create a shorter, snappier English version optimized for LinkedIn or a blog post, keeping the tone engaging for readers. Do you want me to do that?

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