Earth Day is in April
This year, Earth Day comes at a time when we are facing an unprecedented pandemic, which requires us to shut down many of our economic activities to protect ourselves. The result is a very significant drop in pollution and greenhouse gas emissions: the lockdown that a large part of the world's population is currently experiencing seems to be giving our planet a bit of a break.
But what will happen when the crisis is over? It is an opportunity to remind us that our planet and its ecosystems provide our livelihood and that it is our responsibility to preserve them for our future generations.
The effects of human activity on the planet and its climate represent threats that humans inflict on their ecosystem and thus on their own species. Establishing an Earth Day also means recognizing that we depend on it, not the other way around.
For more than 50 years, on this day, we have all been collectively called to act. In the financial field, companies or public organizations have launched interesting and innovative initiatives. For example, at the end of 2018, the first "Forest Resilience Bond" was issued and is the result of a partnership between the public and private sectors. This fund finances projects to safeguard the Californian forest(1) based on the impact loan mechanism(2). Only institutional investors or foundation managers can subscribe to this type of investment due to the volume of investment.
On the other hand, it is possible, on an individual scale, to make an effective contribution and invest in an offer the investment theme of which is linked to the biosphere, such as the fight against climate change(3). Or to engage in philanthropic action. Let's mention the "Terre Solidaire"(4) foundation, which is recognized as being of public utility in France. Its ambition is to "participate in the construction of a society that conceives of progress and economic and social development in a way that respects nature, women and men and the limits of the Earth". Its action is deployed in France and internationally.
If you would like to get involved in this cause, we can accompany you. Contact your Private Banker.
2. Impact loans are debt instruments whose repayment terms depend on the achievement of social or environmental results.Performance may also sometimes be conditional on the achievement of these indicators.
3. Provided its risk profile matches your expectations
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