The ENGIE Rassembleurs d’Energies solidarity investment fund
Energy access projects often demand substantial investment. ENGIE has responded to that demand by establishing a French mutual solidarity investment fund (Fonds Commun de Placement Solidaire or FCPE Solidaire) and a wholly-owned solidarity investment company called ENGIE Rassembleurs d’Energies S.A.S.
What is a solidarity fund ?
Ever since the scheme was introduced on January 1, 2010, companies that offer their employees a company savings plan (Plan d’Épargne-d’Entreprise/PEE) or a group retirement savings plan (Plan d’Épargne pour la Retraite COllectif/PERCO), must offer the option of investing in a solidarity fund. These products are known as 90/10 funds, meaning that they can invest up to 10% of their assets in socially supportive companies. The remaining 90% is invested in traditional assets, which in most cases means Socially Responsible Investments or SRIs.
The ENGIE Group offers its employees in France the opportunity to invest their salary-based savings in the ENGIE Rassembleurs d’Energies Flexible FCPE. Up to 10% of these solidarity savings are then invested in projects supported by the investment company ENGIE Rassembleurs d’Energies S.A.S in areas consistent with the employment profile of Group employees.
How do projects obtain funding from the ENGIE Rassembleurs d’Energies S.A.S solidarity investment fund ?
Using capital currently provided by ENGIE, the investment company ENGIE Rassembleurs d’Energies S.A.S invests in social entrepreneurs as a route to funding the development of economically viable projects offering long-term access to energy for those currently excluded from such a service. These projects must fall into at least one of the following three categories:
What are the investment criteria set by ENGIE Rassembleurs d’Energies S.A.S ?
- The relevance of the solution : Product or service quality, distribution network structure and maintenance, reproducibility of the financial model, quality of organizational and management structure, market conditions, etc.
- Social performance : number of beneficiaries, local job creation, variation in available income, reduction of health risks, improvement of education, access to modern information and communication technologies, greater community self-sufficiency, enhancement of the role of women in society, etc.
- Environmental performance : reduction in CO2 emissions, combating deforestation, substitution of fossil fuels, the presence of a recycling structure, protection of biodiversity, improvements in home energy performance, etc.
- Project financial value and maturity : Involvement at every stage in company maturity (initiation, startup, development and growth) and financial feasibility
- Synergies with the ENGIE Group : Involvement of Business Units and entities at local level, experimentation with new business models, etc.
How does the ENGIE Rassembleurs d’Energies SAS solidarity investment fund provide its support ?
- Equity or quasi-equity investment
- Amounts invested: between €100,000 and €1 million, with an average of €300,000
- Average investment period: 5-7 years
- Minority holding (<40%)
- Representation on governance bodies
- Leveraging Group expertise to assess investment projects and provide help and support to entrepreneurs throughout the investment period
Conflict of interest Policy
- ENGIE Rassembleurs d’Energies’ (RDE) mission is to promote access to sustainable energy for all through direct minority investments in enterprises which purpose is to provide sustainable and relevant energy access solutions to under-served populations. As such RDE may invest in different companies active in related or competing fields.
- Until now, RDE has not appointed voting board members in companies operating on competing market segments.
- Generally, board members appointed by RDE are committed to act in the best interests of the company where they seat.
- Should an independent body declare that a conflict of interest having a material adverse effects exists, then RDE will endeavor to put in place adequate corrective measures that it deems appropriate in the relevant case.