De l'investissement socialement responsable à la finance durable, quelles sont les conséquences des changements de politique et de régulation sur les praticiens en Belgique ?

Abstract

This thesis begins with an important quote from Klaus Schwab, founder and Executive Chairman of the World Economic Forum, who argues against our current economic system being driven by selfish values, such as short-term profit maximization, tax and regulatory evasion, and the externalization of environmental damage. Considering this, green investments have been gaining increasing prominence in the business world, prompting all types of investors and companies to consider them when investing their money. This shift from being a mere moral obligation to becoming an increasing legal requirement marks the rise of a critical issue today: sustainable transition.

Sustainability is gradually permeating the finance sector, an essential lever of our economic system. Long-standing environmental, social, and governance (ESG) issues have given rise to 'sustainable finance,' which occupies a growing space in the financial sphere. The landscape is evolving in terms of sustainability stakes, significantly affecting practitioners.

European legislation, particularly the Green Deal launched by the European Union in December 2019, aiming to make Europe climate-neutral within 30 years, has been a significant driver of this evolution. The European Commission is implementing extensive legislation and constraints to promote a greener and more sustainable society. These legislative developments have led to a shift in terminology from 'Socially Responsible Investment' (SRI) to 'Sustainable Finance.' Asset managers are increasingly encouraged to adopt a range of practices in line with these regulatory changes.

The purpose of this thesis is to understand what these changes imply for practitioners, particularly asset managers. The study aims to identify the real consequences of this change in terminology: Is it merely a requirement, or does it carry deeper implications? Is it suitable for practitioners and their sustainable finance practices, or are they resisting these changes in terminology introduced by law? Will it help shift the economy from a conventional paradigm to a more sustainable one?

To answer these questions, we first examine the evolution of terminology. In the first part of the thesis, we review the literature, diving into the history of SRI, its origin, evolution, and contemporary understanding. We discuss interesting facets such as SRI performance, mainstream placement, and its future.

The thesis then explores the move towards sustainable finance and its arrival in Europe, examines the policies and regulations surrounding it, and looks at perceptions and criticisms of its regulation. An empirical study, presented in the second part of the thesis, offers insights into overcoming regulatory confusion.

Semi-structured qualitative interviews with asset managers provide a practitioner's perspective on the real impact of these laws. There is a lack of studies directly addressing issues related to regulatory change and the role of legislative initiatives in enhancing the financial sector’s contribution to the necessary transition to ‘truly sustainable business’.

These interviews enabled us to answer the following question: ’From socially responsible investment to sustainable finance, what are the consequences of policy and regulatory changes on practitioners in Belgium?’ After collecting and analysing data from the 9 interviews conducted, we present the results, discuss them by drawing parallels/differences with the literature, and conclude by summarising the actual impact of terminological changes on practitioners, as well as the limitations of this thesis that could serve as interesting research topics in the future. The aim will also be to learn more about the current state of the market, mainly in Belgium.