As part of ” the week of responsible finance ” in France, Eva Sadoun, Founder and President of Lita.co, was interviewed by Mathieu Vidard in the program La Terre au carrée of France Inter. In this interview she answered to the following question: “how to manage your money responsibly? “
The President did not hesitate to point out that the question of where the money saved is being invested is now more important than ever. She emphasized that when you want to refuse investments in fossil fuels or other sources, there are alternatives to traditional financial actors to which you can turn. Indeed, the actors of responsible finance add extra-financial components to traditional savings-account products, which do not only analyse the financial impact of the products but also their impacts in terms of climate, environment and other social parameters.
In terms of carbon footprint, each individual consumes, saves and produces. 40% of each individual’s carbon emissions are linked to the way they invest their money and they don’t even know it. This is why tools like Lita.co are emerging to act by bringing transparency back into finance. Individuals are unaware of the power they have in financing the transition. Of global savings, 38% is life insurance and therefore individuals have funds that hold government bonds (in France), it is a vector of democracy with which they can influence the state towards more sustainable transition of society. When we look at private savings, such as Livret Apassbooks or funds, money is used by banks to make investments, largely in fossil fuels. The key to the distribution of the use of money is not available today, whereas as a shareholder, everyone should be able to demand better investments from the banks.
Nevertheless, there are ways to change this situation. If a person has a booklet or life insurance, he or she can ask to transfer them to “sustainable and solidarity development”. The Caisse des Dépôts will have to invest in the transition (for new passbooks). You can also request SRI (socially responsible investment) funds for your life insurance and refuse to invest in anything that differs from your values. Employee savings can also be invested in SRI portfolios.
Find the complete interview here (in french)