Like the smell of corruption with these SRI labels, ESG criteria, Article 8 (SFDR), these funds are marked to invest in Russia or China … Guardians, brave pigeons ?

As a custodian who wants to give meaning to your savings, you may be surprised that your money can be used to pay for chemical products used during armed conflicts, hand-marketing companies companies based in China or Russia, with regard to files, social and environmental issues. promises. By the way, what about a Chinese social investment? Well… Ask your financial advisor.

CSR, ESG, SRI…

CSR, ESG, SRI … All are good for the subscription of financial products. Investors are more sensitive to the results of their investments. And obviously, between two different products, it will be tempting to choose an SRI that is marked or that shows strong ESG values, or that is armed with an “Article 8” according to the rules Europe. However, recent news has confirmed that these labels are not waterproof. The lack of importance, the choice, because the choice is very difficult. The explosion in the number of SRI funds clearly demonstrates this. When all funds are called SRI, can we make the most of our efforts in terms of social respect? The doubt is clear.

A blur that hasn’t started since 2022…

Since the inception of these labels, there has been something like malaise. How simple advertising messages of companies can have a label about their social or environmental impact. What about their subcontractors? Who will verify the site? Exactly, how do we measure results? And therein lies the communication error. Organizations start to work on “common sense”, but the results cannot be calculated. There is no commitment to the actual show, just the driver’s license. And it’s better than not having coal by 2050, or some such nonsense. As proof, nuclear power, which was banned 10 years ago, is coming back to the eyes of the world as the best solution in a few months. All the countries will start, even those who are the most strongly opposed … While a nuclear reactor remains in the child’s pot allowing the steam to go into the turbine, not the principle has changed since 1960. This means that an SRI or other Label given cannot be held for 3 years. The world is moving fast.

Labeling, the first hiccups arose quickly

This French bank, which boasts of its so-called ESG funds, has decided to move its IT office located in the Paris region to Porto. There is a profit, despite all the praise. Amazing for a company that wants to take ESG to the next level. Yes, but it has nothing to do with it. This bank’s money is called ESG, not what the bank does. The bank intends to invest in companies that comply with certain ESG criteria, that is all.

Funds called SRI by the French state, investing in China or Russia

Social responsibility, do you understand? Eating is more difficult now. If it is easy to criticize after the fact, after this Russian attack, it appears that the right questions will be asked only in front of the wall. Is China a model of socially responsible management? Why can the funds given to investors in China be named?

SRI / ESG investment in China or Russia © @V_Auriac/Twitter

Therefore, Vincent Auriac, the President of Axylia (a consulting company specializing in responsible finance since 2005) is surprised that funds investing in China or Russia can be named by the state.

ORPEA, Philip Morris, BP, etc.

The Orpea recently reported that the ESG scores, which are intended to show the environmental, social and management performance of companies, do not provide reliable information that can identify problems in these areas. . Orpea, a private company specialized in the management of residences for dependent elderly people (Ehpad), boasted in its 2021 CSR report (social and environmental responsibility) a good progress in the given levels by some agencies, while the book “Les Fossoyeurs” by the researcher Victor Castanet, published in 2022 after three years of investigation, shows the structural problems leading to the cases of insulting the ancestors.

In the USA, Phillip Morris is the best comparator, with excellent ESG scores (among the best!). Therefore, this company is the producer of cigarettes of the world’s largest consumers. In terms of respect for the environment and people, it is surprising that the criterion of human health has not been considered.

BP was rated well in terms of private liability before the explosion of its Deepwater Horizon oil field in 2010, Volkswagen before the “Dieselgate” broke in 2015, and in 2019, La Poste received the best award given by the ESG rating company Vigeo-Eiris, the same year Envoyé Spécial reported on the wave of murder.

In short, the cup is full. Selling to clear your conscience… Nothing else.

Société Générale, invested in Russia, ESG? Is everything good?

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