ISR Label 2025: The Revolution of Socially Responsible Investment

Summary: The ISR (Socially Responsible Investment) label reaches a milestone in 2025 with over 1,000 certified funds and new ESG (Environmental, Social, Governance) requirements. This article presents the enhanced criteria (transparency on carbon commitments, local social impact, corporate governance), the impact on asset managers’ fundraising, and advice for savers wishing to switch to a 100% ISR portfolio. A mapping of the main market players and concrete cases of tax optimization are also provided.

The ISR Label 2025: A New Era for Responsible Investment

Created in 2016, the ISR label aims to ensure the effective integration of Environmental, Social and Governance (ESG) criteria in fund management. In 2025, this label enters a new phase, marked by the adoption of stricter criteria and greater transparency, meeting the increasing demand from investors for investments aligned with ecological transition and positive social impact.

Strengthened Criteria for a More Demanding Label

Starting in 2025, the ISR label requires certified funds to:

• Transparency on carbon commitments: Each fund must publish its carbon footprint reduction objectives and report annually on its alignment with the Paris Agreement.
• Local social impact: Asset management companies must measure and explain the concrete social benefits generated by their investments, especially regarding employment, inclusion, and regional development.
• Corporate governance: Special focus is placed on diversity, remuneration transparency, and the fight against corruption within selected companies.

These new requirements aim to strengthen the label’s credibility and appeal, while promoting the selection of companies truly committed to sustainable transition.

Impact on Fundraising and Asset Managers’ Offerings

With over 1,000 certified funds in 2025, fundraising for ISR funds is experiencing unprecedented growth. Asset management companies are adapting their product ranges to meet the demand of both individual and institutional investors:

• Broader offering: Diversification of thematic funds (climate, biodiversity, equal opportunities, etc.).
• Innovation: Development of impact funds, with remuneration partially indexed to the achievement of ESG objectives.
• Greater transparency: Provision of digital tools to track the evolution of extra-financial indicators.

This dynamic promotes better allocation of capital towards responsible and innovative companies.

How to Switch to a 100% ISR Portfolio?

For savers wishing to align their savings with their values, here are some practical tips:

1. Identify ISR-labeled funds available within their life insurance, equity savings plan (PEA), or retirement savings plan (PER).
2. Analyze ESG reports provided by asset managers to assess the real commitment of the funds.
3. Diversify themes (environment, social, health, governance) to spread risk.
4. Favor funds that offer maximum transparency on their tangible impacts.
5. Consult a wealth management advisor to optimize the taxation related to these investments.

Mapping the Main Players and Tax Optimization

The French ISR market is driven by a range of players:

• Large asset management companies: Amundi, BNP Paribas Asset Management, La Banque Postale AM.
• Specialized boutiques: Mirova, Sycomore AM, Ecofi Investissements.
• Insurers and banks: AXA, Generali, Crédit Agricole, which are gradually integrating ISR funds into their multi-support contracts.

From a tax perspective, investing in ISR funds via life insurance or a PEA allows you to benefit from:

• Capital gains tax exemption after 8 years of holding (life insurance).
• Favorable taxation on withdrawals (PEA, PER).

Example: An investor putting €50,000 into an ISR fund via life insurance can, after 8 years, benefit from an annual €4,600 allowance on gains, while actively contributing to ecological and social transition.

Conclusion

The ISR label 2025 marks a key milestone in the democratization of responsible investment in France. Thanks to more demanding criteria and a broader offering, it now represents an essential tool for savers wishing to combine financial performance with positive impact. Turning to ISR means investing in the future while optimizing your wealth management strategy.