In France, so-called “sustainable” finance is often embodied for savers by the Socially Responsible Investment (ISR) label. A month ago, the label’s committee published its recommendations to the French government on its evolution, as the credibility of the label has been affected for years by a low level of requirements coupled with a lack of transparency on the content of labeled funds. While these recommendations broadly recognize the need to strengthen the label’s criteria, their precise definition has been postponed and left in the hands of working groups whose membership is not public. The risk is that the process will become more complex, leading to a dilution of responsibilities and – ultimately – a failure to take into account the available scientific evidence.
