Why Young People Are Interested in SRI Funds and Sustainable Finance

Young people's aspirations regarding the energy transition are now aligned with their interest in responsible and sustainable investments. 

Young people’s desire to give their investments real meaning is growing, with 58% of those under 35 expressing an interest in responsible investing, according to an AMF study in April 2023. SRI (Socially Responsible Investment) funds offer an opportunity to invest in funds that include assets selected based on ESG (Environmental, Social, and Governance) criteria. These funds consist primarily of equity funds—sometimes with specific themes (such as reducing inequality, eco-friendly food, combating climate change, responsible consumption, etc.)—as well as ETFs, bond funds, real estate funds, and even real estate investment trusts (SCPIs).
 

It should be noted that the integration of ESG criteria often results in SRI funds outperforming traditional funds. It is also worth noting that, although these funds invest in risky assets, they carry a risk of capital loss—a risk that can, however, be mitigated by taking ESG criteria into account. In particular, this approach helps minimize risks related to reputation, regulation, and other factors that can significantly influence the stock prices of traditional funds.
However, it is important to be wary of “greenwashing” and the lack of transparency surrounding certain investments marketed as “responsible.” Therefore, it is recommended to rely on quality labels that guarantee the credibility of products, such as the SRI label, as well as the Greenfin label (guaranteeing financing for the ecological transition) and the Finansol label (covering solidarity-based savings investments and finance with a strong social and/or environmental impact).
 

Investing in SRI funds is possible through various vehicles, such as unit-linked life insurance policies or PERs, as well as through a PEA or a securities account offered by online brokers. This flexibility allows investors to actively participate in sustainable finance by allocating their capital to companies that operate responsibly and in harmony with today’s social and environmental challenges.