Few examples of practicing
social or ethical finance
- Credit card
- Savings account
- Mutual and pension funds
- Guarantee funds
- Impact loans
- Transparency
- Ethical and responsible principles
Bérangère Bertoncello, Crédit Coopératif
CREDIT CARD + SOCIAL IMPACT
« Act » credit card, by Crédit Coopératif cooperative bank
Each time a customer withdraws money in an ATM or pays by card,
Credit Cooperatif makes a donation (€0.06 in every ATM or €0.12 in
the own bank ATM) to an NGO the client has chosen among a panel.
The client can decide to give more with option « Act together for
more solidarity ». The donation is opening a tax deduction.
Total donations in 2013 : €351.300
« L’arrondi » : round up your payment for micro donations, by Micro Don
Idea is a very small donation (€ cts), available for a wider number of
people can lead to huge amounts collected.
Concretely, there are very small donation on daily transactions (bill,
wage slip, receipts, …). Banks propose to their clients to round up on the
monthly statement : €123.68 → €124.
Similar programs in UK (‘the pennies foundation’), in Germany
(‘Deutschland Rundet Auf’), in Mexico (‘el Redondeo’).
SAVINGS ACCOUNT + SOCIAL IMPACT
« BBK Solidarioa » savings account, share interest rate for social financing
« BBK Solidarioa » savings account is sold on all BBK bank branches.
Each year, the client gives part (50%) of the savings account interest
to the foundation BBK Solidarioa. BBK bank makes an equivalent
donation. Tax deduction is open for both customer and bank.
Foundation BBK Solidarioa is in charge of all the social impact
financing: microcredit, loan to social inclusion entreprises, …
Before Spanish crisis-2009: BBK Foundation total assets €16,3M
SAVINGS ACCOUNT + ENVIRONMENTAL IMPACT
« Livret CODEVair » savings account, by Banques Populaires
CODEVair savings account is dedicated to finance the environmental
impact projects by PREVair loan.
Lower interest rate on savings account → subsidized PREVair loan.
From starting of this product, Crédit Coopératif bank financed more
than €21,5 M of environmental investment.
MUTUAL FUNDS/PENSION FUNDS + SOCIAL IMPACT
Social Impact Mutual Funds, an essential product of asset manager portfolio
The EU regulation allows to invest up to 10% of the « Social Impact Mutual
Funds » in non-listed social enterprises. Also called “90 /10 funds”.
“Social enterprises” status is designated by local authorities.
French social impact finance
label, also available for
social impact mutual funds.
Almost all the French banks propose Social Impact Mutual Fund :
- BNP Paribas
- Crédit Coopératif
- Crédit Agricole
- LCL
- Caisse d’Epargne
- La Banque postale, …
Social Impact Pension Funds, product n° 1 within French social impact finance sector
Since 2010, the french regulation obliges all asset
managers to propose at least 1 social impact pension
fund among their portfolio.
Social Impact Pension funds also invest up to 10% of
the assets in non-listed social enterprises.
The social impact pension funds (in light yellow) have
greatly increased since 2010.
End 2012, all french social impact pension funds =
€ 2.577M for 30 different products.
GUARANTEE FUNDS + SOCIAL IMPACT
Guarantees for micro-credit providers under European Progress Microfinance Facility
The EIF offers to micro-credit providers (as financial intermediaries )
- capped guarantees (direct guarantees of counter-guarantees)
- partially covering portfolios of micro-loans (< 25.000€) or guarantees
on micro-loans granted to micro-enterprises (including self-employed
people, or entrepreneurs being female, young, belonging to a minority
group or with a disability, etc).
2014-2020 EU budget : around €193M for microfinance (45%) and
social entrepreneurship (45%).
Guarantee fund for microcredit, by Etica Sgr (asset manager Banca Popolare Etica)
Funds underwriters-clients don’t pay any commissions
still they have the rights to devolve 1 ‰ of the subscribed amount
(1€ per thousand)
to a guarantee fund for Italian microcredits by Banca Popolare Etica.
31/12/2012: €700.000 in “Fondo di garanzia di Etica Sgr per il
microcredito Italia”
LOANS + ENVIRONMENTAL IMPACT
Sustainable mortgage loans, by Alternative Bank Switzerland
Alternative Bank Switzerland implement the « Rating immobilier BAS© »
methodology to assess the environmental criteria for building or
renovating building.
This influence the price of the loan:
better is the ecological rating, lower is the interest rate.
LOANS + SOCIAL IMPACT + ENVIRONMENTAL IMPACT
Social Green Loans, thanks to a public private partnership,
by Crédal financial cooperative and Brusells city
A grant zero rate loans to families with low incomes in order to finance
works and changes which help to save energy in the household (roof
isolation, double glazing, thermostat control, …).
Around 80 social green loans per year in Brussels only.
It is currently available for wider population.
How money circulates in Credit Cooperatif (2011)
TRANSPARENCY
68%
€3.5 billion
€9.1 billion
€1.4 billion
€14 billion
€10 billion
€3.4 billion
10%
37%
53%
€0.6 billion
ETHICAL AND RESPONSIBLE PRINCIPLES
A financially responsible policy in Crédit Coopératif
- No engagement in
speculation
- No subsidiaries or registered
premises in tax havens
- No commodity index
products
- Patient management
- Extra-financial assessment of
portfolio
- Allocation of profits decided by the
members customers entites
Innovative financing for development:
Voluntary Contribution on Currency Transactions, by Crédit Coopératif
The bank allocate 0,01% of the total interbank foreign exchange transactions processed
towards an actor for international cooperation for development.
In 2012, aournd 80.000€ for GERES.