New Guidelines for the SRI Label

What are the new ambitions of the SRI Label?

The French « Label ISR » Committee updated the requirements investors will have to comply with to get the label, hoping the 1200 already certified ones will develop a truly solid and demanding generalist SRI approach.

The committee's objective is to propose a more demanding, legible and effective label to support the efforts of the financial sector to move towards a more sustainable economy.

To achieve this goal, they propose to focus on three main areas of development:

• Strengthen the selectivity requirements by lifting the exclusion threshold from 20% to 30%.Strengthen the selectivity requirements by lifting the exclusion threshold from 20% to 30%.
• Make double materiality a systematic requirement and ensure consistency between the fund's ESG strategy and its stated goals.Make double materiality a systematic requirement and ensure consistency between the fund's ESG strategy and its stated goals.
• Systematically integrate the climate change dimension into the SRI label's foundation.Systematically integrate the climate change dimension into the SRI label's foundation.

These rules should improve both the selectivity of responsible asset managers and their extra-financial ratings compared to their benchmark, which are the two approaches the label seeks to promote. A consultation is open from April 18 to May 31, 2023, to gather comments on the changes proposed by the Label Committee. After analysing the results of this consultation, the Committee will publish its final proposals for changes to the standard, which will then be approved by the British Minister of the Economy.