Monaco Sustainable Finance
Almost two years ago, a working group was created on the future of the Monegasque banking and financial center. The first topics addressed by its members were questions related to innovations in digital finance, and in particular resulted in the National Council voting on Bill 1.491 of token offering.
Last Friday, a new joint Task Force, composed in particular of representatives of AMAF and the State, met to record the launch of a new initiative, desired by the Prince’s Government, on the theme “Monaco Sustainable Finance ”.
The Principality of Monaco is one of the main European centers, alongside with Switzerland and Luxembourg, in the private banking activities. HSH the Prince Albert II of Monaco, through His decades-long commitment to sustainable development, is for His Country an example that banking and financial players, both public and private, must now follow, especially as the implementation of sustainable development in economic and financial matters consitutues a major factor in international competitiveness.
Indeed, in a globalized economy, the success of companies’ strategies, like investors, is more and more dependent on the ESG criteria (Environment, Social and Governance) or “SRI” (Socially Responsible Investment).
Integrating these factors into financial analysis and investing, as well as in risk management, can improve returns, but also reduce risk, including systemic risk.
« Environmentally friendly finance that can support technological development for sustainable development. »Jean Castellini, Government Counselor – Minister of Finance and the Economy
Bankers, fund managers, private managers, have understood, for themselves and for their clients, especially Family Offices and institutional clients, the value of integrating a “sustainable” approach into their decision-making processes. All these actors have become aware of their share of responsibility in solving global challenges and in implementing the changes essential to the fight against global warming.
« We must ensure that our actions and our investments are in line with our commitment to the planet »Jean Castellini, Government Counselor – Minister of Finance and the Economy
Taking sustainable development into account in management processes is therefore able to contribute to achieving financial objectives on the one hand, and on the other hand the major objectives targeted by the Paris Agreement on the Climate and / or United Nations SDGs.
For these reasons, Jean Castellini, the Government Counselor – Minister of Finance and the Economy, brought together representatives of AMAF, CCAF, banks established in the Principality and management companies, which constitute typologies of ” diversified investors and players in the Monegasque market to make up this mixed Task Force.
The two objectives of this group will be on the one hand to define a methodology, and through it, to identify the objectives which the players in the Monegasque market want to achieve; and on the other hand to establish an appropriate framework that will be used within financial institutions in the contractual relationship with employees and customers.
« Protecting the planet, helping to develop new methods and new technologies through these investments, this is what we will seek to implement for the Monegasque financial center through the Monaco Sustainable Finance » Task Force.Jean Castellini, Government Counselor – Minister of Finance and the Economy
The Principality currently offers various funds in harmony with the SDGs, however the degrees of progress in sustainable finance are not homogeneous, and these methodologies should allow finance players to converge more towards common objectives. Emphasis was also placed on staff training and awareness.
« The proposal that had been made to integrate these issues into AMAF’s professional certification program is already well advanced, and should materialize within a very short timeframe. ».E. Franzi, President of AMAF
« We all want to go in that direction. We are all already there in a dispersed manner. In fact, we all have ESG or SRI labeled UCITS in our various entities. This research will allow us to identify our level of involvement and to judge our progress »Hervé Ordioni, Managing Director of Banque Edmond de Rothschild in Monaco, and Chairman of the “Market Promotion” Commission of the Monegasque Association of Financial Activities (AMAF)
« I am delighted to participate in this working group, convinced that this will make it possible to speed up the situation and to engage in concrete measures ».Xavier Midorge – CEO Pleion SAM
Article : Joana Foglia – Source : Communication Department of the Princely Government of the Principality of Monaco, Monaco Info – Interview 03/19/2021
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