Green Savings: A Practical Guide to Impactful & Informed Investing

According to a study conducted on 130,000 people across 125 countries and published in Nature Climate Change in April 2025, 89% of people worldwide want to take greater action against climate change. In France, a survey by the Observatory of Territorial Energy Transition shows that 87% of voters consider this transition a key factor in their voting decisions.
Increasingly aware of the climate emergency, the French are looking for concrete ways to promote ecological transition and sustainable development. While everyday actions are well established — avoiding water waste, improving home insulation, favoring seasonal products, using public transport or electric vehicles, etc. — one area often overlooked is the role of savings and investment.

Financial investments are generally intermediated by banks or asset managers whose priorities rarely reflect those of end investors. Capital can therefore be invested in projects that run counter to sustainable development (mining, fossil energy production, deep-sea fishing…). As a result, the carbon footprint of a conventional savings product can be equivalent to several long-haul flights per year.
But this is not inevitable — if your investments can hinder the ecological transition, they can also support it. Aligning your finances with your values simply requires selecting the green savings product that best fits your goals, both in terms of financial return and environmental impact. It is entirely possible to achieve both.

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What are Green Savings?

Definition and Difference from Conventional Savings

Green savings refers to financial products explicitly aimed at funding projects that protect the environment and promote the energy transition. Like traditional savings, they grow your money, but they direct funds toward socially and environmentally responsible companies and projects. Green savings products are diverse, from simple savings accounts to life insurance and direct financing, with varying levels of risk and growth potential. This diversity also extends to the initiatives supported: wind farm financing, thermal renovations, ocean protection, etc.

The management of funds is where green savings differ from traditional savings. In conventional savings, banks or financial intermediaries (such as institutions like BlackRock and Amundi or bank subsidiaries) reinvest funds according to their own financial priorities, without environmental or social responsibility criteria. These investments are often difficult for individuals to trace.

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The Beginnings of Green Savings

While the concept of responsible investment dates back several centuries, notably with the Mont de Piété under Louis XIII, green savings began to gain popularity in the 1990s, driven by growing public environmental awareness and the development of ethical finance. The Finansol label, which identifies savings products supporting projects with high social or environmental utility, was created in 1997.

Modern green savings is closely linked to the ESG movement (Environmental, Social, and Governance standards). The publication of the Who Cares Wins (WCW) report in 2004 launched this movement. Published at the initiative of the United Nations, this report propelled the principle of integrating responsible criteria to the forefront for both companies and institutions. According to this report, social and environmental risks would only continue to grow, and their absence in economic models represented a major risk. The 2007-2008 financial crisis quickly demonstrated that the probabilistic models then in force ignored colossal risks. Following the publication of the WCW report, a first wave of methodological ESG standards emerged, and over the years, the term ESG entered common vocabulary.

Green Savings in 2025: An Assessment

So, what's the assessment after more than twenty years? While green savings enjoys significant popularity, with nearly one in five French people claiming to own at least one "sustainable development-related" investment in 2023, it has also been a target of criticism, especially in recent years. In a context marked by growing discontent with greenwashing, savers and NGOs alike deplore a disturbing lack of transparency regarding these investments. Despite a massive influx of capital into ESG funds, it remains very difficult or even impossible to measure their quantifiable impact on decarbonization, and the "color" of green investment often stems more from compliance with standards than from its actual scope. Emblematic of this evolution, the ISR label, which evaluates the integration of ESG criteria, has been under reform since 2023 to strengthen the exclusion of fossil fuels and the transparency of the environmental impacts of financed projects.

To meet this demand for empirical proof from savers, a new wave of green finance is emerging, rooted in reality, demonstration, and physical quantification. Beyond simply adhering to conventions, this new green savings is full of inventiveness, offering new financial products with measurable impacts. Since 2023, Homaio has allowed savers to invest directly in EU ETS emission allowances—a mechanism that not only encourages industries to decarbonize their activities but also finances sustainable development initiatives such as MaPrimeRénov. In parallel, opportunities for green savings with concrete effects continue to multiply, such as "cat bonds" (catastrophe bonds), a possible solution to the insurability crisis in areas exposed to natural disasters, or direct financing of renewable infrastructures.

What Green Savings Products Are Available on the Market?

For those who wish to make sustainable investments, many options allow combining criteria of return, security, and responsibility:

• Regulated Savings Accounts: Several green savings accounts are available on the market, such as the LDDS (Livret de développement durable et solidaire, formerly Codevi) with an annual interest rate of 2.4%, and the Plan Épargne Avenir Climat (PEAC), reserved for young people under 21. Savings accounts generally offer lower returns but allow participation in green finance with less risk.
• ISR Life Insurance: Popular with many savers for retirement planning, a life insurance contract allows for committed investments by choosing ISR unit-linked funds (investment supports linked to variable-value funds). For life insurance financing 100% sustainable projects, Goodvest and Moka offer specialized contracts.
• ISR PER: Similar to life insurance but more flexible, the ISR PER (Plan d'Épargne Retraite) allows you to prepare for retirement by combining tax advantages and flexible payment management, while selecting investments that respect ESG criteria.
• Green PEA: The PEA (Plan d'Epargne en Actions) can be directed towards eco-responsible projects or companies by choosing actions or funds labeled ISR, ESG, or Greenfin. Combining profitability and direct impact, the green PEA also offers interesting tax advantages to investors after five years of holding.
• Green ETFs (Exchange Traded Funds): With green ETFs, investors can place their money in exchange-traded funds dedicated to sustainable development. These funds track a specific index or a basket of stocks that meet ESG criteria. ETFs allow investors to support clean energy, decarbonization, or the blue economy at reduced costs and without having to invest in individual stocks.
• Green Bonds: These bonds represent debt securities issued on financial markets by companies or organizations to finance ecological initiatives. For transparency, issuers must publish an annual report detailing the evolution of these projects. The green bond market is growing rapidly, and France is the second-largest issuer of green bonds in the world behind China.
• Green Investment via Crowdfunding: To invest directly in ecological projects, crowdfunding platforms such as Blue Bees, Lumo-France, Enerflip, or Lendosphère list hundreds of initiatives related to sustainable development.
• Green SCPIs: Champions of eco-responsible real estate, green SCPIs (Remake Live, Novaxia Neo, Iroko Zen, etc.) allow investing in real estate to transform it into highly energy-efficient housing, or to focus on acquiring already well-rated buildings. They reconcile stable returns and long-term valuation, as the real estate sector places increasing importance on environmental standards.
• Greentech FCPRs: Primarily for experienced investors, greentech FCPRs (Fonds Communs de Placement à Risques) offer strong profitability potential, but these investments are riskier, as their name indicates.
• European Carbon Allowances: Homaio offers a unique solution for savers wishing to have a measurable impact on the environment: the purchase of carbon allowances from the EU ETS (European Emissions Trading System). In Europe, a large portion of polluting companies are required to hold allowances to emit CO2. These carbon allowances are issued by the EU, which reduces their total number each year to encourage decarbonization. By allowing investors to buy these allowances and thus remove them from the market, Homaio offers a concrete opportunity to make CO2 increasingly expensive for industry. This deterrent approach combines concrete impact and advantageous returns: over the past 10 years, the average annual return on carbon allowances has exceeded 25%, far ahead of most traditional assets.

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The wide variety of green savings products available on the French market allows investors of all profiles to participate in green finance.

• A young professional can start their savings project with a PEAC and then an LDDS savings account.
• A prudent saver will turn to a managed ISR life insurance to prepare for the future with peace of mind.
• A retiree or soon-to-be retiree will find interest in an ISR PER or a green SCPI to supplement their income.
• And an experienced investor seeking a strong impact will diversify their assets with carbon allowances, climate ETFs, green bonds, or greentech FCPRs.

Advantages and Risks of Green Savings

The Strengths of Green Savings

Beyond ecological and responsible considerations, green savings also often offer comparable returns to conventional savings. There's no question of sacrificing your money for your principles: green savings products allow you to reconcile both. This advantage also holds true in the long term—by integrating and even anticipating climate risk and associated market changes, these investments can demonstrate greater resilience, a valuable asset in an uncertain economy. Between regulatory pressures and growing demand for socially and ecologically responsible initiatives, sustainable investment has a bright future.

Finally, green savings products can also guarantee true transparency regarding investments and impacts.

Limitations and Precautions

All investments carry risk, whether it's a conventional investment or a green finance investment. And while their profitability may be higher, stocks and ETF-type supports are considered riskier.

For those who wish to invest in green savings products with real impact, it's important to be wary of greenwashing. Many investment vehicles may claim to be "green" despite very limited impacts. It therefore becomes necessary for savers to familiarize themselves with labels (Greenfin, ISR, Finansol...), carefully read impact reports, and, if necessary, seek guidance in choosing and managing assets.

What is the Real Social and Environmental Impact of Green Savings?

By directly financing initiatives related to the ecological transition, green savings plays a key role in transforming the economy. According to a 2025 report, Greenfin-labeled funds represent 35 billion euros in assets under management, invested in renewable energy, energy efficiency, sustainable forest management, and the sustainability of buildings and infrastructure.

By supporting the decarbonization of the economy, green savings contributes to the development of new sectors, notably those of energy renovation, renewable energy, and sustainable agriculture. This movement also stimulates innovation in new clean technologies and redirects financial flows towards a decarbonized economy.

In practice, green savings is a way for citizens to "vote with their wallets." By redirecting their investments, they clearly signal their desire to see their money used for causes dear to them and to forge a more inclusive and environmentally respectful future.

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The Right Labels to Avoid Greenwashing

Green savings is gaining momentum, but it's also a victim of its popularity. Greenwashing is unfortunately endemic, and many offers claim to be green without any concrete proof—a phenomenon that even discourages some savers and threatens the credibility of the green finance sector. In recent years, an asset management company received a fine from the AMF for "shortcomings in communication regarding sustainability" of the green funds it offered, and the NGO Reclaim Finance recently denounced supposedly "responsible" employee savings funds... which were secretly financing hydrocarbon projects.

To avoid these pitfalls and invest in truly sustainable and responsible projects, several labels can guide you:

• The Greenfin Label: Created by the French State, the Greenfin label has the strictest criteria. It completely excludes fossil fuels and nuclear energy and requires concrete and measurable proof of environmental impact.
• The ISR Label: Another state label, the ISR (Socially Responsible Investment) label evaluates the ESG criteria of companies financed by investments. Less strict than Greenfin, this label has been criticized by investors and NGOs, who considered it too permissive. Reformed in 2024, it has tightened its requirements for excluding certain industries and for low-carbon transition.
• The Finansol Label: Awarded by the association of the same name, the Finansol label helps identify solidarity and social savings projects, including those related to the development of ecological activities.
• The European SFDR: The SFDR (Sustainable Finance Disclosure Regulation) allows for comparing the ESG commitment of funds available on the European market.
  • Article 6: Funds with no ESG objective.
  • Article 8: Funds integrating ESG criteria.
  • Article 9: Funds with proven environmental or social impact.

For an Impactful and Committed Green Finance

Addressing climate change requires €3–5 trillion annually, achievable only by mobilizing private capital. Homaio continues to innovate with products combining measurable impact and high return potential.

In the coming months, Homaio will launch a treasury investment product linked to European carbon allowances — the “Carbon Spread” — offering returns equivalent to the difference between spot and futures contracts (currently 2.52–2.80%, vs. a risk-free rate of 1.93% in Europe). Backed by the €800 billion EU ETS market, this is a low-risk investment.

Beyond the Carbon Spread, Homaio is building a full suite of climate-focused assets.

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