Your money has a carbon footprint
We talk a lot about the carbon footprint of our travel, our diet, or our consumption. But one of the largest — and least visible — footprints is that of our money. A euro invested in a bank that finances oil projects indirectly contributes to the emissions of the hydrocarbon sector. Conversely, a euro directed towards renewable energy projects or an environmentally exemplary company actively participates in the ecological transition.
According to the charity Oxfam, the 15 largest French banks financed 2,700 billion dollars' worth of fossil fuels between 2016 and 2022. Your savings, through the deposits and investment products you subscribe to, help feed these financial flows. But you have the power to choose differently.
Here are 7 concrete ways to make your money more ecological.
1. Choose an ethical bank
The most impactful decision is your choice of bank. Traditional banks invest part of their clients' deposits in various sectors, including fossil fuels, arms, and intensive agribusiness. Ethical banks, on the other hand, are contractually committed to financing only projects with a positive social and environmental impact.
In France, several players stand out:
- La Nef: the only French cooperative bank entirely dedicated to ethical finance. It publishes every year the complete list of all loans granted — a total transparency that is unique in its kind.
- Credit Cooperatif: a long-standing cooperative bank, committed to financing the social and solidarity economy.
- Helios: a French neobank that commits to not financing any fossil fuel project, with real-time carbon reporting on your spending.
- Green-Got: a French fintech that plants trees and invests in environmental restoration projects from the commissions on your payments.
For a detailed comparison of the offers available on the French market, consult our guide: Ethical banks in France: complete 2024 comparison.
2. Optimise your Livret de Developpement Durable et Solidaire (LDDS)
The LDDS is the regulated savings product most directly linked to the ecological transition. By law, part of the funds collected on LDDS accounts must be devoted to financing thermal renovation of homes, developing renewable energy, and financing the social and solidarity economy.
The interest rate is identical to the Livret A (3% since early 2023, then progressively revised), interest is fully tax-exempt, and the cap is 12,000 euros. If you have not yet maxed out your LDDS, it is the first thing to do — it is simple, risk-free, and virtuous.
3. Invest in SRI (Socially Responsible Investment) funds
SRI (Socially Responsible Investment) is an investment approach that integrates environmental, social, and governance (ESG) criteria into the selection of companies to invest in. In France, the SRI Label, issued by the Ministry of Finance, certifies funds that follow a rigorous ESG methodology.
However, beware of nuances: the "original" French SRI label was criticised for allowing oil companies in labelled portfolios. A substantial reform of the label came into effect in 2024, now excluding companies developing new hydrocarbon projects.
The different types of green funds
- Best-in-class funds: select the best companies in each sector on ESG criteria, even in controversial sectors
- Best-in-universe funds: select the best companies across all sectors, generally excluding the most polluting ones
- Exclusion funds: explicitly exclude certain sectors (coal, tobacco, arms, oil)
- Impact funds: invest in companies whose business model directly contributes to climate or social solutions
4. Green bonds
Green bonds are debt securities issued by governments, local authorities, or companies to specifically finance environmental projects: renewable energy, energy efficiency, clean transport, sustainable water management. France is a pioneer in this area: it issued its first green OAT in 2017, for an amount of 7 billion euros.
For individuals, it is possible to access green bonds through green REITs (SCPIs), SRI bond funds, or green real estate crowdfunding platforms.
5. Crowdfunding for renewable energy projects
Renewable energy crowdfunding platforms allow individuals to invest directly in wind, solar, or biogas projects from a few hundred euros. It is one of the most tangible forms of investment and the most directly linked to clean energy production.
- Enerfip: a French specialist platform, with more than 400 projects financed for 350 million euros
- Lendosphere: a pioneer in renewable energy crowdfunding in France
- Lumo: an approved platform, solar and wind projects with returns between 3 and 7%
Caution: these investments carry a capital risk and are not guaranteed. They are suited to investors who understand the risks of lending to SMEs.
6. Climate impact funds
Beyond traditional SRI, impact funds go further by measuring and reporting the concrete impacts of their investments: tonnes of CO2 avoided, megawatt-hours produced, jobs created. These funds invest in direct climate solutions: energy storage, clean mobility, regenerative agriculture, and the circular economy.
"An impact fund does not just avoid harm — it actively seeks to do good, with evidence to back it up." — Finance for Tomorrow Initiative
Some examples accessible to French individuals: Mirova Europe Environmental Equity (Natixis), Sycomore Happy@Work and Climate Solutions (Sycomore AM), or Pictet Global Environmental Opportunities.
7. Your retirement savings plan (PER) and life insurance
Life insurance and the PER are two of the most widely used savings wrappers in France, with 1,900 billion euros and 300 billion euros in outstanding assets respectively. Yet, most euro-denominated funds (the guaranteed component of life insurance) invest in government and corporate bonds with no particular environmental consideration.
To green your life insurance:
- Redirect part of your savings towards SRI or Greenfin-labelled unit-linked funds
- Choose contracts offering a solid range of green funds (Garance, Maif Vie, Aviva with its responsible ranges)
- Check whether your contract allows allocating funds towards renewable energy financing vehicles
For a detailed guide on the best ways to invest your money for the climate, consult our article: Savings and climate: how to invest your money for the planet.
Conclusion: your money votes for the world of tomorrow
Every financial decision is a vote for the type of economy you want to see develop. By gradually directing your savings, investments, and banking products towards responsible players and vehicles, you exert influence over the capital flows that shape the real economy. It is not a sufficient solution on its own — public policies and regulation remain essential — but it is a real lever, within everyone's reach.