French savers’ investments in social ventures top €29bn in 2024, latest ‘solidarity finance’ figures reveal
Data in the Social Impact Finance Barometer 2025 reveals investments in ‘solidarity finance’ grew by nearly €2bn compared with 2023, but its share of total household savings fails to increase substantially.
French savers’ investments in social ventures stood at €29.4bn in 2024 – an increase of nearly €2bn on the previous year, according to data published last week.
While it indicates a steady growth of personal investments in social economy organisations the figure represents just 0.46% of French households’ financial savings – a level that has remained broadly flat in the past two years.
The data was released on Thursday by FAIR, a membership body for the social finance sector, and French Christian newspaper La Croix, in the Social Impact Finance Barometer 2025. They represent the year ending 31 December 2024.
Figures include investments by French savers in non-listed social economy organisations, what the French often refer to as ‘solidarity-based finance’.
Raising awareness…remains central to dispelling misconceptions and showing that returns and impact are not mutually exclusive
Patrick Sapy, CEO of FAIR (pictured), said: “The enthusiasm for solidarity products remains strong – nearly 2m savers now understand that solidarity finance is not only based on strong values but also offers concrete, useful solutions for all French people.
“Beyond this, raising awareness among the general public and distributors offering these products remains central to dispelling misconceptions and showing that returns and impact are not mutually exclusive.”
According to the researchers, in 2024 French savers’ solidarity-based investments resulted in housing for 2,800 people, 21,000 jobs created or consolidated, and supported the development of 2,400 hectares of organic agricultured.
Figures from 2023 were revised down (from €30.2bn to €27.5bn) following updated data from the French Asset Management Association (AFG) regarding the assets under management of solidarity funds, but it doesn’t affect the upwards trajectory of the size of the market, as the market stood at €26.3bn in 2022.
French solidarity-based finance: what is it?
Solidarity-based finance can take several forms. Those include direct investments (in the form of equity or bonds)in social impact organisations like social enterprises, cooperatives, charities, investment clubs, microfinance institutions and real estate trusts.
Savers may also invest their capital in social impact funds managed by banks, insurance companies and asset managers which in turn invest in social ventures.
Another option for French savers is to open a savings account with a bank or mutual fund and donate part of the interest to nonprofits or charities.
As of 2024, the largest share of solidarity-based investments was through employee savings schemes, which accounted for 60% of the total at €16.3bn. Direct investments in social enterprises stood at €1.2bn.
A supportive ecosystem
FAIR manages the Finansol label, which was launched in 1997 and certifies socially responsible savings products open to the general public.
The French financial system has an established regulatory environment to encourage personal saving investments towards social impact finance.
Since 2010, all employers that offer savings plans to staff must offer what are termed ‘90/10 solidarity funds’ (which were created in 2001). These funds allocated between 5 and 10% of their assets to eligible social enterprises, and the remaining 90-95% of assets are invested following SRI principles.
Since 2022, insurers are required by law to offer at least one social option in life insurance policies.
While some solidarity-based investments can benefit from tax breaks, FAIR insists greater fiscal incentives are needed to make a difference – something the group is campaigning for.
To drive more savers to invest in social ventures, FAIR suggests leveraging interest in solidarity finance from employees: out of 2m savers investing in solidarity finance, 1m do this through employee saving schemes, so “we need to better convince employees to subscribe to solidarity-based products”, according to FAIR.
The social enterprise H.A.W.A au Féminin employs and trains vulnerable women for the fashion trade, in particular to produce upcycled fashion items using leftover materials from prestigious couture brands. ©Solène Mollière / Les Canaux
| Ready to invest in independent, solutions-based journalism?
Our paying members get unrestricted access to all our content, while helping to sustain our journalism. Plus, we’re an independently owned social enterprise, so joining our mission means you’re investing in the social economy. |
