The Sustainable Finance FAQ

Have you ever heard of sustainable finance? Of course! But maybe you’ve wondered what it actually encompasses. To answer all your questions and clear up any doubts, Enerfip has created a FAQ (Frequently Asked Questions). What is it? Which criteria are used? Let’s dive in and explore everything you need to know about sustainable finance!

What is sustainable finance?

Before going further, it’s important to understand the topic. Let’s start with the key question: what is sustainable finance?

It’s a broad term covering investment solutions with an environmental purpose. The goal is to make financial practices more environmentally responsible, socially inclusive, fair, and equitable, taking into account ESG criteria (Environmental, Social, Governance).

What are the different types of sustainable finance?

• Green finance: Promotes ecological transition by supporting impact-driven companies and projects.
• Solidarity finance: Supports initiatives that fight social exclusion.
• Responsible finance: Accelerates socially responsible investments.

Key figures in France

• 66% of French people consider sustainable development issues important.
• 75% say the environmental impact of investments matters to them.
• 57% can identify responsible or sustainable investments.
• 44% believe responsible or sustainable investments are attractive.

Source: “Les Français et les placements responsables,” OpinionWay for AMF, July 2023.

What do ESG criteria mean?

You’ve probably heard of ESG criteria, a core part of sustainable finance. ESG stands for Environmental, Social, and Governance. These criteria highlight the key issues companies must consider to adopt long-term sustainable strategies.

Breakdown of the criteria:

• Environmental: Evaluates a company’s impact on the environment and its alignment with ecological and energy transition goals.
  Examples: CO₂ emissions, waste recycling, electricity consumption.
• Social: Examines how a company manages professional relationships and human capital.
  Examples: employee training, employment of people with disabilities.
• Governance: Looks at how a company is managed, administered, and controlled.
  Examples: transparency of executive pay, gender diversity in decision-making bodies.

What are the main sustainable finance labels?

A label guarantees that a project or product meets specific standards. For sustainable finance, labels help ensure investments are virtuous. Some key labels include:

• ISR (Socially Responsible Investment): Applies sustainable development principles to investments, including environmental respect and quality of work life (QWL).
• Greenfin: Certifies the environmental quality of investment funds.
• Finansol: Focuses on social impact and transparency for solidarity-based savings products.
• CIES (Inter-Union Committee for Employee Savings): Promotes social and environmental standards in employee savings plans.
• Crowdfunding for Green Growth: Guarantees transparency and commitment for crowdfunding projects supporting ecological and energy transition.

For more on sustainable investment, check out our full article!

How to avoid greenwashing

The ESMA (European Securities and Markets Authority) defines greenwashing as:
"A practice in which claims, actions, or communications related to sustainability do not clearly and fairly reflect the underlying sustainability profile of an entity, financial product, or financial service."

Why is it a problem?
Greenwashing misleads consumers and creates unfair competition for brands genuinely committed to sustainable finance. It can deceive investors, consumers, and other market players.

How does Enerfip provide a solution?

"Through our investment choices, each of us can influence energy policies and support a low-carbon society."
— President & Co-Founder, Enerfip

As a European leader in sustainable investment for the energy transition, Enerfip offers diverse and high-performing investment opportunities. By partnering directly with project developers, Enerfip promotes a short-circuit financing model. These investments actively support a low-carbon society while providing attractive financial returns.

If you’re interested in sustainable finance, book a meeting with our Investor Relations team today.