Sustainable Stimulus Investment Programme
As major players involved in financing the economy and as long-term investors, French insurers have made a commitment to the public authorities to support the country’s economy affected by the health crisis and have decided to set up a €1.5 billion investment programme, with Caisse des Dépôts et Consignations, predominantly invested in equities. This programme, which comprises three tranches, is intended to benefit mainly ETIs* and SMEs, the tourism sector and the healthcare sector.
* Intermediate sized-enterprises, INSEE definition
Update : 31 July 2020
As major players in responsible investment, committed to the fight against global warming, French insurers wish to promote a sustainable economic recovery by innovating in terms of taking into account extra-financial criteria in this new investment programme.
Thus, any unlisted investments carried out is conditional on the integration of sustainable development considerations into the company and on setting objectives in this area.
In addition, extra-financial criteria are systematically taken into account in the company selection process and certain undertakings that use or produce thermal coal, tobacco, or that transport or market chemical or biological weapons, or activities in proven violation of the principles of the United Nations Global Compact are excluded.
The financial and extra-financial impact of the programme will be assessed throughout its implementation in order to report, among other things, on job creations, the proportion of women in management positions, the carbon footprint, and relocated production.
The production by management companies of this reporting is an eligibility condition to the Programme.
This tranche of the Investment Programme is primarily aimed at managers of ‘NOV’ investment funds and fund managers partnering with insurers for the benefit of microentreprises*, SMEs and ETIs, without any sector-based focus.
The relaunch of the ‘NOV’ market funds has been implemented through NOVA 2 managed by Admiral Gestion, NOVO 2020 managed by Tikehau, and NOVI 2020 managed by La Financière de l’Echiquier. Subscriptions have amounted to nearly EUR 300 million.
The insurers have also proposed 9 funds to support the French economy. The strategies proposed by the sponsoring insurers cover private debt, unlisted shares and listed shares.
*“Très Petite Entreprise” or “TPE”, INSEE definition
The second tranche, of approximately EUR 150 million, is intended to finance businesses in the tourism sector through:
- A crowdfunding platform for microentreprises;
- Equity and quasi-equity financing for SMEs/ETIs in the sector.
The final tranche of at least €600 million, dedicated to the healthcare sector, will include three funds. Their investments will contribute to strengthening health sovereignty and will be made in particular in the areas of research, infrastructure, logistics and healthcare services. Their implementation is planned for October.
The governance of this tranche will be structured around an Investors Committee and a Scientific Advisory Board composed of leading healthcare experts.