The Greenfin label: A complete guide to French certification for green finance
The Greenfin Label, formerly known as TEEC (Transition Énergétique et Écologique pour le Climat), today represents the first state label dedicated to sustainable finance in France. Created in 2015 by the French Ministry of Ecological Transition, it aims to steer investments towards projects and companies that actively contribute to the fight against climate change. The label is part of a global approach that also promotes low-carbon standards and certifications.
At a time when the energy transition is becoming a national priority, this label has become a benchmark for identifying responsible investment funds. It guarantees investors that their investments, particularly in life insurance, effectively support economic activities in line with environmental objectives.
Unlike other, more generalist labels, Greenfin excludes fossil fuels and nuclear power.
In this article, we outline the label, its main requirements, and its role in transforming the financial sector. The aim: to understand what Greenfin is all about, and how to integrate it into a responsible investment strategy.
Contents
Labelling criteria and methodology
Greenfin certification is based on a rigorous methodology that integrates several dimensions:
🚫Strict exclusion criteria
The Greenfin label is distinguished by the application of particularly strict exclusion criteria, testifying to its strong commitment to the ecological transition. This certification categorically excludes any investment linked to fossil fuels, marking a clear break with traditional business models. It goes even further, banning nuclear and military-related activities. This uncompromising approach also extends to companies that are the subject of major environmental or ethical controversies, guaranteeing the credibility andintegrity of the label among committed investors.
- Total exclusion of fossil fuel activities
- Ban on nuclear and military activities
- Restrictions on controversial companies
⚖️Part green and ESG analysis
Labelled funds must meet two requirements:
- A minimum of 50% investment in green activities
- An in-depth analysis based on ESG criteria (Environment, Social, Governance)
Management companies wishing to obtain the label must demonstrate :
- Expertise in responsible asset management
- Rigorous analysis processes
- Full transparency on their investment methods
Positioning in relation to other labels
The Greenfin label differs from the SRI(Socially Responsible Investment) label in its specific focus on the ecological transition. Whereas the SRI label takes a more general approach to sustainable development, Greenfin focuses exclusively on the environmental and climatic impact of investments.
This complementarity allows investors to choose according to their objectives:
- SRI label for a global approach to socially responsible investment
- Greenfin label for a direct impact on the energy and ecological transition
Practical applications and accessibility
For individual investors
Investors can access Greenfin-labeled funds through a variety of vehicles:
- Life insurance contracts
- Company savings plans
- Directly accessible mutual funds
A number of certified B-Corp companies, like France Valley, offer certified investment solutions that combine financial performance with environmental impact.
For institutional investors
Financial institutions will find the Greenfin Label:
- A reference framework for their responsible investment strategy
- Objective investment selection criteria
- A tool for communicating their environmental commitment
Impact and outlook
The growth of the Greenfin Label bears witness to the evolution of the sustainable finance market:
- Steady increase in the number of funds awarded the label
- Diversification of investment strategies
- Tougher reporting requirements
Future challenges include :
- Harmonization with European taxonomy
- More stringent climate change impact criteria
- Extending accessibility to private customers
To maximize their impact, companies can also carry out a GHG or carbon footprint assessment, including scopes 1, 2 and 3 as well as scope 4 for avoided emissions.
Conclusions and recommendations
The Greenfin Label has established itself as a reliable benchmark for directing savings towards the ecological transition. For investors wishing to make an active contribution to the fight against climate change, it offers :
- A guarantee of transparency
- A measurable impact on the energy transition
- A robust regulatory framework
Faced with the challenges of sustainable development, this label represents an essential tool for aligning finance and environmental objectives. Savers can thus give meaning to their investments while helping to transform our economy towards a more sustainable model.
In addition, integrating approaches such as LCA calculations or the use of CO2 emission factors can reinforce this commitment. Companies can also benefit from subsidies to carry out their carbon footprint or consider carbon offsetting.