Green structured products: bringing meaning to investments
A joint interview with Cyrille Nahabedian, Global Head of Capital Markets Solutions - Indosuez Wealth Management and Matthieu Monlun, Managing Director at Equity Solutions – Crédit Agricole CIB. Thanks to their combined expertise, they design green structured products* for Indosuez Wealth Management clients.
In a few words, can you explain the advantages of green structured products?
Cyrille NAHABEDIAN: Structured products allow investors to access different markets (equities, interest rates, etc.) while benefiting, where appropriate, from capital protection. In concrete terms, the funds are allocated to a "green performance driver" (for example, a package of shares chosen for their strong orientation towards sustainable development), and then reinjected into the green economy in the form of project or company financing deemed sustainable and eco-responsible.
Matthieu MONLUN: I would add that green structured products are optimised to meet the specific expectations of clients who want to be able to establish the link between their investment and its benefits for the environment and society.
What is your experience after more than a year of marketing this type of product?
Matthieu MONLUN: The outcome is very positive and our close collaboration has enabled us to strengthen our capacity to produce innovative and differentiating solutions.
Cyrille NAHABEDIAN: We are pleased to have been able to develop this offer within the Crédit Agricole group and alongside Crédit Agricole CIB, one of the world's leading arrangers of green, social and sustainable bonds (23.6 billion euros in 2020)**. The results are very positive with 340 million euros of green structured products issued since the beginning of 2020 for Indosuez clients***.
What do you see for the future of green financial products?
Matthieu MONLUN: If the financial sector fails to position itself as a leader in terms of environmental sustainability, sooner or later the legislation will force it to do so. Understanding it as an opportunity and not as a constraint is a choice that corresponds to Crédit Agricole's DNA.
Cyrille NAHABEDIAN: Absolutely, under the strong impulse of the Group, our projects at Indosuez are moving in the direction of extending this theme to all asset classes.
*Structured products are sophisticated products intended for well-informed investors.
***Source: Indosuez Wealth Management.