The notions of responsibility, sustainability and ecology are taking over the world of finance. But how do you navigate the myriad of funds and investments labelled “green”? What are the boundaries between investments and loans that claim this qualifier and those that aim more broadly, through the adjectives “sustainable”, “ethical” or “responsible”, or on the contrary that focus on a single issue, such as climate change?
The answer lies in standards: at both international and national level, professionals in the field meet in standardization committees to clarify vocabulary and definitions, as well as the criteria and activities that enable a given fund to claim to be sustainable, green, ethical or responsible. These include voluntary standards such as the ISO 14030 family of standards (environmental performance), the future ISO 14097 standard (climate change) and the draft ISO 32210 standard (sustainable finance).
Sustainable finance: co-writing the standard with AFNOR
As money knows no borders, we need to think globally. Bringing together professionals in the field (banks, investment funds, etc.), AFNOR represents France in international standardization committees led by ISO. In particular, the work carried out aims to define terms and concepts precisely, to ensure that we use a shared reference system and vocabulary throughout the world. The concepts of climate finance, green bonds and socially responsible investment are the subject of work within the “Environmental management systems and tools to support sustainable development and the fight against climate change” commission, in conjunction with the ISO/TC322 committee on sustainable finance. For more information on this subject, download the AFNOR white paper “Green and sustainable finance”.
