Article 29 of the 2019 Energy-Climate Law was published on May 28 in the Official Journal of the French Government, specifying the new contours of regulatory obligations for financial actors in terms of ESG (environmental, social, and governance) reporting. The targeted financial institutions will be under the obligation to report on:
- The contribution of their investment portfolios to pressure and impact on biodiversity
- Their alignment with long-term biodiversity targets, including, where appropriate, the biodiversity footprint indicator used
- Financial institutions will also have to report on their management of physical, transition, and liability risks related to biodiversity
As biodiversity is a relatively new topic in the financial world, investors are looking for tools to account for and reduce their biodiversity footprint.
This is why the biodiversity impact indicator, which we are developing with our partner Iceberg Data Lab for several investment funds (AXA Investment Managers (IM), BNPP Asset Management, Sycomore AM, and Mirova) was mentioned in the French newspaper Les Echos article “Asset managers must comply with new obligations on biodiversity”.
It will be an innovative tool that will help financial players understand the footprint of their investments on the fauna and flora.