Impact finance: Publication of initial work by the Groupe de place
The marketplace initiative on impact finance, launched in March 2021 at the initiative of Bruno Le Maire, Minister of the Economy, Finance and Recovery, and Olivia Grégoire, Secretary of State for the Social, Solidarity and Responsible Economy, and led by Finance For Tomorrow, today publishes the initial results of its work. This publication presents a shared and ambitious definition of impact finance for the Paris marketplace, covering all sectors of finance.
The marketplace group brings together more than 80 institutions representing the financial sector (banks, investors, asset management companies), as well as historical associative players involved in impact and the academic world. After nearly 6 months of work and exchange under the aegis of Finance For Tomorrow, the working group is today publishing its definition, testifying to the shared ambition of Paris financial market players for the development of impact finance, at the service of the fair and sustainable transformation of the real economy.
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Impact finance is an investment or financing strategy that aims to accelerate the fair and sustainable transformation of the real economy, by providing proof of its beneficial effects. It relies on the pillars of intentionality, additionality and impact measurement, to demonstrate: 1. The joint pursuit, over the long term, of ecological and social performance and financial profitability, while controlling the occurrence of negative externalities; 2. The adoption of a clear and transparent methodology describing the causal mechanisms through which the strategy contributes to environmental and social objectives defined upstream, the relevant investment or financing period, and the measurement methods, according to the so-called theory of change framework; 3. The attainment of these environmental and social objectives within reference frameworks, in particular the Sustainable Development Goals, at international, national and local levels. |
Read the report
Read the executive summary
Download the press release
This definition is based on a detailed report, a veritable literature review of French and international reference works on impact, making the link with European regulatory developments and underpinned by feedback and the vision of French players.
The marketplace group is continuing its work on impact measurement, the conditions for the development of these practices and the promotion of French expertise on these subjects. The next publications on these topics are expected by the end of October.
Olivia Grégoire, Secretary of State for the Social, Solidarity-based and Responsible Economy, emphasizes : ‘The development of impact finance is a real opportunity for the financial sector to play an active part in the fair and sustainable transformation of the real economy. As the definition underlines, declarations are no longer enough; financial players must prove their contribution to this transformation. The unprecedented mobilization of the Paris financial community around this project bears witness to our pioneering expertise in impact finance, and to our determination to accelerate our progress in this area, thanks to the power of the collective.
Thierry Déau, Chairman of Finance For Tomorrow, comments : ‘Our challenge is to scale up these practices, which are still too marginal. It is essential that all French financial players adopt the collective definition, in order to develop it in practice, as a better structured market will support the spread of impact projects and the capacity for innovation of economic players’.