Mr Jean Castellini, Minister of Finance and Economy, discusses the details of actions led by “Monaco Finance Durable”, created in 2021, which in turn reflect a series of actions that focus on the environment and on developing a sustainable economy in the Principality.
What is the goal of “Monaco Finance Durable”?
Jean Castellini: The “Monaco Finance Durable” initiative, launched by the Department of Finance and Economy almost two years ago, primarily concerns the Constitutional Reserve Fund (FRC).From now on, we aim to systematically analyse environmental, social and good governance (ESG) criteria when selecting all our investment funds. It is a way of looking at investing with a considerably broader vision, and to a certain extent of changing the FRC from a “reserve” fund to a “sovereign” fund. This new approach makes it possible to gain a better understanding and appreciation of the fund’s sustainable development goals, its climate policy, and the risks to the environment, society and (potentially) governance tied to the underlying assets, and to ensure the trajectory of reducing carbon emissions. In summary, we are making every effort to apply the vision of HSH Prince Albert I to our sector, and to follow European regulatory changes in sustainable finance, to which we are obviously paying close attention.
We are also trying to select funds that, through their themes, offer the Principality a certain amount of diversity. In this spirit, we are keen to promote our ecosystem of companies, start-ups, associations, our Scientific Centre and the Musée Océanographique, among others, so that all stakeholders are promoted through FRC investments as soon as possible.
“Monaco Finance Durable” also realises a proposal made to finance professionals in 2021, namely that the ESG policy we are applying to the FRC is at the heart of each financial entity on the market. We have therefore decided that an ESG specialist should be appointed within each financial institution (regardless of its size), and that training in sustainable finance should be offered to employees.The AMAF, which is in charge of implementing this training, and which I thank, has recently set up a module dedicated to ESG, which will be offered by the IUM, and will no doubt be reinforced by additional training programmes targeted to individuals’interests.
Does “Monaco Finance Durable” work with the AMFiD?
Jean Castellini: “Monaco Finance Durable” is a government initiative, and as such, it must reflect all the private initiatives on the market. We invite each of these associations – the AMAF, AMFiD, AMCO and ACI – to collaborate on the subject of sustainable investing, and try our best to promote their efforts and actions to achieve greater consistency. The AMFiD, the Monaco Association for Sustainable Finance, is the newest of these associations; we have been talking with the founders regarding areas of research and progress in terms of sustainability standards, and we rely on their expertise to work with their members from the banking and asset management sectors to move forward on these issues and report all relevant information to my Department.
What is “Monaco Finance Durable” currently focusing on?
Jean Castellini: “Monaco Finance Durable” also organises events throughout the year that highlight different Monegasque players’actions on sustainability. These include the Prince Albert II Foundation, the MTE (State of Monaco Mission for Energy Transition) and companies such as SMEG.We also invite a thematic fund to present its methodology and explain its approach to solving the major problems of our planet. The first event dealt with energy transition, the second with the management of plastic, and in March we will collaborate with the Prince Albert II Foundation’s event, OIP Ocean Innovator Platform, on the “blue economy”
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