Finance for Tomorrow launched in March 2021 a Paris Financial Centre Task force dedicated to Impact Finance at the request of Minister Olivia Grégoire, Secretary of State in charge of the Social, Solidarity and Responsible Economy to the Minister of the Economy, Finance and Recovery.

It now gathers more than 80 institutions from the Paris financial centre within four working groups focusing on (i) the definition, (ii) the measure, (iii) the conditions for development and removal of barriers, and (iv) the international promotion of the French vision of Impact Finance.

Pledge for the development of Impact Finance

The Paris Financial Centre Task force dedicated to Impact Finance worked on the development of a pledge for the development of Impact Finance. This declaration aims to massively strengthen the contribution of the financial sector to the achievement of the international sustainable development goals and is based on three principles to be implemented in order to scale up Impact Finance: the implementation of a structured and demanding definition of Impact Finance ; the promotion of an upstanding impact approach ; a clear and transparent communication as well as the appropriate measurement and reporting tools ; and the integration of Impact Finance into regulatory and market frameworks.

 

Read the pledge

 

More than 90 organizations committed to support the development of impact finance by signing the pledge

1

The joint search, over time, for an ecological and social performance and a financial return, 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 the targeted environmental and social objectives, the relevant period of investment or financing, as well as the measurement methods – according to the concept of theory of change.

3

The achievement of environmental and social objectives aligned with frameworks of reference, in particular the Sustainable Development Goals, defined at the international, national and local levels.

the definition of Impact Finance

Impact Finance is an investment or financing strategy that aims to accelerate the just and sustainable transformation of the real economy, by providing evidence of its beneficial effects.
It is based on the pillars of intentionality, additionality and impact measurement, to demonstrate :

DISCOVER THE WORK DONE BY THE PARIS FINANCIAL CENTRE IMPACT TASK FORCE DEDICATED TO IMPACT FINANCE

 

PARIS FINANCIAL CENTRE IMPACT TASK FORCE

Under the co-lead of Philippe Taffin (Aviva France) and Xavier Ploquin (Meridiam), the Paris financial Center group is composed of 4 working groups with the objective of formalizing our vision of impact finance and guiding the operationalization through the production of targeted deliverables :

  • Rating scale of the potential contribution of a fund to sustainable transformation

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    Rating scale of the potential contribution of a fund to sustainable transformation

    GT Rating scale - Funds

    OBJECTIVES
    • Continuation and finalization of the work on the evaluation grid of the potential contribution to the sustainable transformation of a fund (ex WG2)
    • Integration of the feedback from the public consultation in test on the F4T website until January 14, 2022
    Road Map 2022
    • Revised excel grid
    • Explanatory note revised if necessary
    • Analysis note on thresholds by asset class ?

    GT Rating scale - Real assets

    OBJECTIVES
    • Development of a valuation grid applicable to real assets
      Specialized sub-groups on real estate and infrastructure with prior finalization of the "funds" grid WG (reco D1 of WG3)
    Road Map 2022
    • Excel grid
    • Explanatory note

    GT Rating scale - Banking Products

    OBJECTIVES

    Development of a grid for bank loans (specialized sub-group)
    1) Inventory of initiatives already deployed by banks to take into account the notion of impact (positive impact finance etc.)
    2) Development of an evaluation grid for bank loans

    Road Map 2022
    • Analysis of impact tools available to banks for bank loans
    • Evaluation grid
    • Explanatory note
  • Operationalization and Impact Measurement

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    Operationalization and Impact Measurement

    OBJECTIVES

    1. Propose "Impact" changes to the SRI Label: make proposals to the Foresight sub-committee and the SRI Label Committee concerning changes to the specifications in order to integrate the results of the work carried out in the marketplace (see WG 3 reco A.1)
    2. Discussions with the AMF on possible adaptations of its doctrine (reco A.2)
    3. Develop a charter for impact funds that would provide a common language and steps to be followed for all products (WG 3 reco A.3). Propose indicators for monitoring the fund's impact strategy (link with the extra-financial performance of the underlying assets, consideration of externalities, consolidation, etc.).

    ROAD MAP 2022

    1. Recommendation note for the label committee
    2. Exchange note with the AMF to calibrate the approach
    3. Impact Charter
    4. Guide to indicators for monitoring the impact strategy
  • Business support and financing tools

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    Business support and financing tools

    OBJECTIVES

    1. Construction of an impact assessment framework for funded companies
    2. Reflection on the different financing tools for impact enterprises: which financing tools to finance which stages (creation, development, transition etc...)? How to work on the complementarity of certain financing tools such as philanthropy and investment? What complementarity between private and public funding to serve the development of impact enterprises? (covers in particular reco C.4 of WG 3)

    FEUILLE DE ROUTE 2022

    1. Impact assessment framework for funded companies
    2. Mapping of financing tools (subject to reflection on proposals for "practical cases" to be tested)
  • Resource Hub

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    Resource Hub

    OBJECTIVES

    Identification of relevant resources on impact to be relayed to French actors via a dedicated page on the F4T website: information, training, academic research, dedicated events, etc. (reco B1 and C1)

    ROAD MAP 2022

    Platform on the net listing existing sources/platforms