Everything You Need to Know About the Greenfin Label

Have you heard of the Greenfin label? It is the French government label that aims to recognize green finance players.  
In this article, we explain everything you need to know about Greenfin! 

What is the Greenfin label?  

The Greenfin label was created by the French Ministry for the Ecological Transition during COP21 in 2015. 
Its goal is to recognize green investment funds. To this end, Greenfin is mainly aimed at financial players working for the common good through transparent and sustainable practices.  

The Greenfin label therefore excludes all investment funds of companies in the nuclear and fossil fuel sectors.  

To manage the label, the French Ministry for the Ecological Transition appointed the independent bodies Novethic, EY France and Afnor to be in charge of the labeling process.  

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Why get the Greenfin label?  

The Greenfin label offers many benefits for financial players.  
For investors, it provides expert certification that their financing approach is genuinely green.  For investment funds, the label brings greater visibility and credibility, as well as expert validation of their positive impact on the environment.  

Obtaining the label is part of companies' CSR approach and offers them many benefits!  

How to obtain the Greenfin label?  

The Greenfin label has set out a series of criteria that must be met to obtain certification. In addition, 8 business sectors are eligible for the label:  

Energy, buildings, waste management, industry, clean transportation, information and communication technologies, agriculture, and climate change adaptation. 

The label's requirements  

Labeled organizations must ensure transparency regarding their financial management. The use of financial instruments and the portfolio turnover rate are also regulated by the label. 

Measuring impact  

To guarantee that the investment fund is green, a process for measuring its environmental impact must be in place. This includes all the resources deployed, both human and technological, to assess environmental impact.  
These resources must enable the investment fund to measure its impact on criteria such as climate change, water, natural resources and biodiversity.  

Obtaining Greenfin certification  

To receive Greenfin certification, investment funds must check their eligibility. To do so, the investment fund submits an application to one of the three bodies in charge of the labeling process (Afnor, EY France or Novethic), including all information on the composition of the portfolio and its management rules.  

A review is then carried out to verify that the investment fund meets the eligibility criteria, namely:  

·     Investment in green activities (listed in the label's framework) 

·     Exclusion of sectors that are not covered  

·     Consideration of ESG criteria  

·     Implementation of environmental impact measurement  

Finding the right partner to switch to green finance 

Growing your business while taking care of the planet is not always easy! Leasetic supports companies in their growth and innovation through investor search, green finance advice and financial expertise.  

Talk to one of our experts today.  

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