This document discusses socially responsible investment (SRI). It defines SRI as incorporating environmental, social and governance factors into investment decisions, rather than focusing solely on financial factors. It describes various forms of SRI, including SRI funds that select companies meeting financial and non-financial criteria, negative screening funds that exclude certain sectors, shareholder activism, and thematic funds focused on sustainability issues. The objectives of SRI investors are either controlling long-term risks and improving returns, or combining investing with ethical values like excluding tobacco or arms companies. The number of institutional and individual investors using SRI approaches is growing internationally.

1. CITIZEN ACT - season 2011-2012 Social Responsible Investment CITIZEN ACT – SEASON 2011-2012

3. _ Qu’est ce que l’Investissement Socialement Responsable (ISR) ? SOCIAL RESPONSIBLE INVESTMENT Socially Responsible Investment (SRI) refers to the various approaches aimed at incorporating sustainable development within a financial management process. SRI consists, for investors that use such an approach, in taking onboard non-financial criteria, such as Environmental, Social and Governance (ESG), in their investment choices. This means that they are no longer looking purely at the financial characteristics of the assets (shares or bonds in listed companies, Treasury bonds, non-listed companies, etc.) in which they invest their capital.

4. _ Various forms of SRI VARIOUS FORMS OF SRI These practices, which have developed substantially since the early 2000s, and notably in France and Northern Europe, can take various forms.

8. _ Thematic funds Thematic funds is a new type of product often associated with sustainable development issues has begun to appear. These are funds that are invested in companies whose activity contributes to sustainable development in its broader sense (renewable energy production, traditional industries that lead their field in terms of energy efficiency, and sectors such as water and waste management or the health sector). Only part of these funds incorporate global demands across all SRI criteria. Novethic has thus created an adapted category called SRI thematic funds. VARIOUS FORMS OF SRI

12. _ Conclusion CONCLUSION On an international level, the number of institutional investors – banks, insurers, pension funds, etc. – that have adopted an SRI approach is rapidly increasing. Individuals can also choose to invest their savings in products that have this type of SRI-fund approach and are available from most major bank and insurance networks.

13. LA VILLE DURABLE | P. Novethic _ Sources