Label Relance
Label Relance should enable savers to easily identify funds that invest in favor of Society based in France that contribute to the recovery of the economy post-COVID while at the same time applying certain ESG criteria
Generalities
| Label | Label Relance |
| Nationality | France - French |
| Management | The Label is issued by the French Treasury's Directorate General to reward Society that invest in boosting the economy |
| Label Type | thematic |
| Website | https://www.tresor.economie.gouv.fr/Articles/2020/10/19/signature-d-un-accord-de-place-pour-la-creation-du-label-relance-afin-d-orienter-l-epargne-vers-le-financent-de-long-terme-des-entreprises-francaises |
| Market | The label only affects Society that have registered offices in France. |
| Products | 218 funds at the end of June 2022 |
| Links to funds | https://www.tresor.economie.gouv.fr/Articles/2020/10/19/signature-d-un-accord-de-place-pour-la-creation-du-label-relance-afin-d-orienter-l-epargne-vers-le-financent-de-long-terme-des-entreprises-francaises |
| Criteria | https://www.tresor.economie.gouv.fr/Articles/64f850de-6ec7-44e9-99c9-40035796ddc9/files/65fe2c8b-7501-4882-b262-353a7b89d1de |
| Periodicity | 4 years with verification of requirements every 6 months |
Detail data
| Description | Label Relance should enable savers to easily identify funds that invest in favor of Society based in France and contribute to the recovery of the post-COVID economy while applying certain ESG criteria |
| Genesis and development | The label was created in October 2020 at the initiative of the Minister of Economy, Finance and Recovery, in consultation with associations and federations of the financial sector, businesses and savers, in order to facilitate post-covid recovery and to make funds that actively participate in supporting the economy recognizable to savers |
| Goals | Label Relance is intended to make it easy to recognize investment funds that can quickly mobilize new resources to support the assets and equity of French companies, and it is intended to enable savers to easily identify investments that can meet the needs of companies, thus encouraging their mobilization for recovery |
| Promoters and administrators | The label is administered by the "Relance" Label Oversight Board, a cross-sectional committee that brings together all financial industry trade associations, and is responsible for reviewing the labeling process and coordinating the actions of the 'Control Board, administered by the Treasury Directorate General, which monitors compliance over time of labeled funds |
| SRI Approach | To qualify for the Relance label, the fund must meet the label's financial criteria (choose one of two investment regimes under the label), and consider ESG factors, including the 'exclusion of coal-related activities, social commitments to employment and employees, and a strong approach toward inclusion, best-practice governance, and gender equality |
| Mandatory Criteria | The minimum criteria that funds must meet in order to obtain the label are divided into investment criteria (allocation of the fund's assets to support the financing of the French economy) and ESG criteria : an ESG supervision system at the Society management level and a multi-year development plan is mandatory, the ESG rating of at least 75 percent of the fund's Portfolio and the exclusion of Society engaged in coal-related activities, and may verify that holdings in Portfolio employ employee-friendly social measures (interest, fair wage plans) and have governance structures marked by gender equality and best-practice. There are also forms of recognition of other French labels (Label SRI, Greenfin, Finansol), and an obligation to comply with the transparency standards issued by the AMF in 2020 regarding ESG. |
| Additional criteria | Optional criteria enhanced by the Ministry are Engagement (voting at annual general meetings and dialogue with Society at Portfolio), and enhanced approach to environmental issues (Issues related to ecological and energy transition typical of the Greenfin Label are particularly encouraged). The Label also asks funds that invest in listed equities for a commitment to materially participate in at least 5 capital increases each year. |
| Allocation process | In order to obtain the label, one must contact the Oversight Board by e-mail by filling out the form provided for application and adding the fund's regulatory documentation, the key information document, any additional documents related to the ESG policy, and any other documents they deem useful for their file review. The Label is granted after full review by the Supervisory Board, which deliberates and notifies in writing the right to use the label for the next 4 years. |
| External certification | the label is initially granted for a period of 4 years, and subsequently verified upon semi-annual reporting. The Treasury, in case of doubt, initiates a monitoring process and reserves the right to remove the right to use the label when the minimum requirements are no longer met |
| Focus on transparency | Funds will be required to publish semiannually on their website information on holdings, the percentage of Portfolio invested in French Society , the type of assets held, and the ESG criteria used (ratings, indicators used) in line with the AMF doctrine on non-financial instruments issued in 2020. The French Treasury publishes the list of labeled funds on a monthly basis. |
| Focus on periodic checks | The supervisory body of the "Relance" label ensures that certified collective investment schemes comply with the commitments set out in the Charter. The right to use the "Relance" label may be revoked if the supervisory body identifies serious violations of the requirements of the Charter, without remedy within a reasonable period of time |
| Related parties | The "Relance" brand was created and is coordinated by the leading financial sector trade associations in France, which ensure its credibility: the French Association of Financial Management (AFG), France Invest, by the French Insurance Federation (FBF), the Fédération French Bank (FBF ), the National Association of Financial Advisors (ANACOFI), the National Chamber of Asset Management Consulting (CNCGP), the French Association of Savings and Retirees (AFER), the French Federation of Associations of Employed and Formerly Employed Shareholders (FAS), the Federation of Independent Associations for the Defense of Retired Savers (FAIDER), and Federation of Institutional Investors and Investment Clubs (F2IC) |
